NEW DELHI: India has warned that new US legislation allowing the imposition of steep tariffs on countries purchasing Russian oil could have implications for bilateral relations and international energy markets.
The Indian response came after the US House of Representatives passed legislation that authorises the US President to impose tariffs of up to 100 per cent on countries buying Russian energy. The measure now awaits presidential action.
India’s Ministry of External Affairs said New Delhi remains committed to ensuring energy security for its 1.4 billion people and will continue to source energy from diversified suppliers based on market conditions.
The ministry said the possible implications of the US legislation for India-US relations and global energy markets had already been discussed with US interlocutors at senior levels in recent months.
India has also made clear that it will take measures to protect its trade and economic interests, the ministry said.
Russian crude has become an important part of India’s energy supply in recent years. India has maintained that its energy purchases are guided by the need to secure affordable and reliable supplies for its large population and economy.
The latest US legislation could therefore create challenges for Indian refiners and businesses if tariffs are imposed on Indian exports.
The development also comes while India and the United States continue discussions on a bilateral trade agreement. The possibility of additional US tariffs has added another issue to the ongoing economic engagement between the two countries.
India is the world’s third-largest oil importer and relies heavily on overseas supplies to meet its crude requirements. Any significant disruption to established sources could affect costs and energy markets.
Indian refiners have already been assessing the potential impact of the proposed measures. Industry representatives have indicated that replacing large volumes of Russian crude quickly could be difficult because of global supply conditions.
New Delhi has said it will continue monitoring developments and work with trade and industry bodies to address the implications.
The issue is therefore being handled through both diplomatic and economic channels, with energy security remaining a key consideration for India’s policy response.
