India walks energy tightrope amid 500% US tariff threat; here's what MEA said on Trump-backed bill

India on Friday said it is carefully monitoring all related issues and developments connected to a proposed US legislation that seeks to impose 500% “secondary tariffs” on countries continuing to buy Russian oil and gas.

Responding to a media query on reports that US President Donald Trump has backed the Sanctioning Russia Act of 2025, Ministry of External Affairs spokesperson Randhir Jaiswal said , “We are fully aware of the proposed bill being discussed, and we are carefully monitoring all related issues and developments connected with it.”

“As far as energy sources are concerned, you are well aware of our approach. We take into account the conditions and environment in the global market, while also keeping in mind our imperative of ensuring that energy is made available at affordable prices to our 1.4 billion people,” he added.

The remarks came after US Senator Lindsey Graham said President Trump has “greenlit” a bipartisan sanctions bill that would allow the White House to impose punitive tariffs and sanctions on countries that continue purchasing Russian oil and gas.

In a post on X, Graham said he had a “very productive meeting” with Trump, following which the president approved the sanctions legislation that Graham has been working on for months with Senator Richard Blumenthal and others.

Sanctioning Russia Act of 2025 seeks to impose what Graham described as “secondary tariffs” of up to 500% on countries that continue buying Russian energy.

“This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine,” Graham said, adding that it would give the US president “tremendous leverage” against countries such as China, India and Brazil.

According to the text of the bill, the proposed legislation significantly expands the US president’s authority if a determination is made that Russia is refusing to engage in good-faith negotiations for a lasting peace with Ukraine, violating any such agreement, launching fresh aggression or undermining Ukraine’s government.

If such a determination is made, the legislation mandates a series of measures, including visa bans, asset freezes and steep tariffs.

Section 15 provides for a minimum 500% duty on all Russian goods and services imported into the United States, while Section 17 targets countries purchasing Russian-origin oil, gas, uranium and petroleum products by requiring tariffs of at least 500% on their exports to the US, in addition to any existing duties.

India has emerged as one of the world’s largest buyers of discounted Russian crude since Moscow’s invasion of Ukraine in 2022. New Delhi has defended the purchases as essential for energy security and inflation control, while maintaining that such imports do not violate any international laws.

“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by the global market situation,” the Ministry of External Affairs had said last year when a 25% punitive tariff was announced.