Government says it is 'closely monitoring' developments on US bill requiring 100% tariff on Russian oil purchases

The Ministry of External Affairs (MEA) said on Friday that the government is “closely monitoring” developments related to US legislation that proposed imposing 100 percent tariffs on five countries, including India, to buy Russian oil.

MEA spokesperson Randhir Jaiswal said during the fortnightly media briefing on July 17 that the government is aware of the proposed legislation and is monitoring the situation.

“We are following these developments closely and are aware of the proposed legislation. That is all I have to say,” Jaiswal said.

He reiterated that India’s oil imports are guided by its energy security requirements and broader supply strategy, noting that New Delhi has multiple suppliers around the world.

“When it comes to buying oil, we buy oil from different countries around the world. It’s based on our approach to getting energy,” Jaiswal said.

Referring to maritime traffic in the region, he said there was regular movement of Indian vessels between India and the Persian Gulf.

“In terms of the number of Indian vessels that are in the Persian Gulf as of today, there is regular traffic between India and the Gulf region; we have seven Indian ships that are there in the Persian Gulf, Indian flagships that are there in the Persian Gulf,” the MEA spokesperson added.

The US bill seeks to impose a 100% tariff

The State Department’s response came after a bipartisan group of more than 60 US senators introduced revised legislation to impose sweeping sanctions on Russia, replacing an earlier proposal for blanket tariffs with targeted measures aimed at the world’s biggest consumer of Russian energy.

Revised Bill, “Senator Lindsey O. Graham Sanctions Russia Act of 2026,” introduced after the death of Sen. Lindsey Graham, makes major buyers of Russian oil and gas responsible for supporting Russia’s war in Ukraine.

The legislation, called the Lindsey O Graham Sanctioning Russia Act of 2026, was introduced Thursday by Democratic Sen. Richard Blumenthal and the late Republican Sen. Lindsey Graham.

According to an official statement, the revised law “refines customs authority from a flat 500% tariff to tariffs for the five largest buyers of Russian oil and natural gas up to 100%, while creating an exemption for countries importing less than 15% of Russian natural gas exports that take significant steps to reduce those imports.”

An overview of the key changes said the revised legislation also “adds new power to impose tariffs of up to 100 percent on the top five countries that facilitate the circumvention of sanctions against Russian oil.”

Blumenthal identified China, India, Slovakia, Hungary and Azerbaijan as the five countries currently expected to be covered by the proposal.

The legislation, originally introduced by Senator Graham and Senator Blumenthal in April 2025, aimed to cut off Russian President Vladimir Putin’s revenue streams used to fund the war in Ukraine by imposing sanctions on Russia’s political leadership, financial institutions and energy sector.