Noida, Sep 16 (APAC Media): India’s $40.8 billion Russian crude oil imports in 2025-26 have come under renewed scrutiny in the US amid proposed legislation that could empower President Donald Trump to impose tariffs of up to 100 percent on countries buying Russian energy.
According to data cited by the Global Trade Research Initiative (GTRI), Russia accounted for about 30.3 per cent of India’s total crude oil imports during the financial year, making it the country’s largest source of crude.
The proposed US sanctions legislation seeks to increase economic pressure on Russia over the Ukraine conflict by targeting countries that continue to purchase Russian oil and other energy products.
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The legislation, which has been under consideration in the US Congress, could give the President substantial authority to impose additional tariffs on countries purchasing Russian energy.
However, the proposed 100 per cent tariff is not an automatic measure against India. Its implementation would depend on the final legislation and any subsequent decision by the US administration.
GTRI founder Ajay Srivastava has said India’s energy procurement decisions should be based on domestic economic requirements and energy security.
“India should avoid recalibrating its policies in response to every new US action,” Srivastava said, according to the report.
He said India’s crude purchases should be guided by “economic interests, energy security and strategic autonomy”.
Russian oil emerged as a major component of India’s crude basket after Western sanctions and restrictions disrupted global energy markets following Russia’s invasion of Ukraine in 2022.
Indian refiners increased purchases of Russian crude, which was often available at discounted prices. The shift helped refiners diversify supplies while taking advantage of lower-priced barrels.
“The stakes are high,” Srivastava said, noting that Russia supplied 30.3 per cent of India’s crude imports in FY26.
He also said discounted Russian crude had helped reduce India’s import costs and supported energy security.
“Giving it up under pressure would impose real costs on the Indian economy,” he said.
India has maintained that its energy purchases are driven by market conditions and national requirements. New Delhi has also repeatedly emphasised the importance of affordable and reliable energy supplies for the Indian economy.
At the same time, India-US energy trade has expanded, with American crude imports rising to $9.1 billion in FY26 from $6.6 billion previously, according to GTRI.
The proposed US measures come as India and the US continue to engage on broader trade issues.
For Indian refiners and exporters, the immediate focus will be on the final shape of the US legislation and whether Washington eventually uses the proposed tariff powers against countries importing Russian energy.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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