US House Advances Bill Threatening 100% Tariffs on Russian Oil Buyers Including India

The United States has long used economic sanctions as a primary foreign-policy instrument. Primary sanctions target a designated state, entity, or individual directly. Secondary sanctions go further: they penalise third-country actors for conducting otherwise legal commerce with a sanctioned state. This extraterritorial reach effectively extends US jurisdiction beyond its own borders. The body that administers these restrictions is the Office of Foreign Assets Control (OFAC) under the US Treasury.

India's relationship with Russia is deep and multi-dimensional. The two countries signed the 'Action Plan for Prioritization and Implementation of Cooperation Areas in the Nuclear Field', reflecting cooperation that extends well beyond energy into defence platforms, nuclear power, and space. This breadth of partnership is precisely why India cannot treat Russian energy purchases as a simple trade decision that can be reversed under external pressure. India's approach is grounded in strategic autonomy, a doctrine rooted in the Non-Aligned Movement tradition. It holds that India will pursue its own national interest rather than align automatically with any bloc. This same doctrine shapes India's simultaneous deepening of ties with the United States through the Quad and the Initiative on Critical and Emerging Technology (iCET). The tension between these two relationships, close defence and energy ties with Russia, and a growing strategic partnership with the US, is the central dilemma this bill forces into the open.

Following Russia's invasion of Ukraine, the G7 nations imposed sweeping economic measures on Moscow, including a price cap of $60 per barrel on Russian crude oil. This cap works not through outright prohibition but by denying Western shipping, insurance, and financial services to any trade above that threshold. India, as a non-G7 member, was not legally bound by this mechanism. As Russia sought alternative buyers and offered steep discounts, India rapidly scaled up purchases. Russia became India's largest single crude oil supplier, accounting for roughly 35–40% of total crude imports. India imports approximately 85% of its crude requirements, making energy price and supply security a core national interest. This is the same structural constraint that has historically driven India to diversify suppliers across West Asia, Russia, and Africa, the logic being that no single supplier should hold decisive leverage over India's energy economy.