Russia Vows to Keep Selling Oil to India Despite US Tariffs

Russia has said it will continue selling oil to India regardless of US tariff threats, as Washington moves toward a possible 100% secondary tariff on countries buying Russian crude. The Russia oil India tariff threats standoff comes as the US House Rules Committee meets on September 14, 2026 to set terms of debate on a Senate-passed sanctions bill, putting India’s largest source of crude imports directly at the center of a widening US-Russia geopolitical dispute.

Russia has been India’s largest crude oil supplier for much of 2026, accounting for more than 50% of India’s oil imports in June and July and nearly 43% through late August, with Russian exports to India climbing past USD 34 billion between April and July, up nearly 60% year-on-year. Moscow’s public commitment to continue supply comes even as Prime Minister Modi and President Putin reaffirmed their “special relationship” during a meeting at the Shanghai Cooperation Organisation summit in Bishkek on August 31, 2026.

Why Is Russia Publicly Committing to Continued Oil Sales?

Russia relies heavily on oil exports to fund its economy amid ongoing Western sanctions tied to the war in Ukraine, making India, alongside China, one of its most important remaining large-volume customers. Public reassurance of continued supply is aimed at giving Indian refiners confidence to maintain existing purchase contracts even as US lawmakers advance legislation that could penalise those purchases with steep secondary tariffs.

How Is India Balancing These Pressures?

India’s Ministry of External Affairs has said it is “closely following developments” on the proposed US tariff bill, while maintaining that its energy purchasing decisions are driven by market pricing and national energy security needs rather than geopolitical alignment. This balancing act reflects India’s broader foreign policy approach of maintaining strategic ties with both Russia and the West, even as it simultaneously pursues a separate bilateral trade agreement with the United States.

Market and Trade Reaction

Indian refiners have reportedly begun exploring incremental diversification of crude sources to hedge against the possibility that the US tariff bill is signed into law and enforced. Oil-market analysts note that any actual 100% tariff, should it be applied, would represent an unusually severe trade measure layered on top of ongoing India-US tariff negotiations, and would likely prompt swift diplomatic pushback from New Delhi.

What Happens Next?

Following the September 14 House Rules Committee meeting, the sanctions bill is expected to move to a full House floor vote in the coming days. Even after passage, the tariff authority would remain discretionary for the White House to apply, leaving room for further US-India negotiation before any tariffs on Russian oil purchases are actually imposed.

Frequently Asked Questions

Why does the US want to tariff countries buying Russian oil?

The proposed legislation aims to cut off revenue funding Russia’s war in Ukraine by authorising secondary tariffs of up to 100% on the top buyers of Russian oil and gas, a list that includes India, China and Turkey.

How dependent is India on Russian oil?

Russia supplied more than 50% of India’s crude imports in June and July 2026, with Russian oil exports to India exceeding USD 34 billion between April and July, making it India’s single largest crude supplier.

Has India responded officially to the tariff threat?

India’s Ministry of External Affairs has said it is closely following developments, while maintaining its oil purchases are guided by market factors and energy security rather than geopolitical pressure.