US Plans 500% Tariffs on Top Russian Oil Buyers: What It Means for India
Published on: July 2, 2025
By: Akash Gupta
The United States is once again tightening its economic grip on countries maintaining trade ties with Russia. A new sanctions bill, backed by former President Donald Trump and spearheaded by Senator Lindsey Graham, proposes a staggering 500% tariff on goods from countries continuing to buy oil and other products from Russia. This legislation is directly aimed at India, China, and other top buyers of Russian oil, raising serious questions about the future of global trade and India’s oil import strategy.
Why the Bill Matters
The bill, currently supported by 84 U.S. senators, is seen as a move to push Russia towards a negotiated end to the ongoing war in Ukraine. While its goal is geopolitical, the implications for India’s import-export dynamics could be significant. India has increased its imports of Russian crude oil dramatically since 2022, rising from under 1% of total crude imports to nearly 40-44% in just a few years.
India-Russia Oil Trade: A Quick Look
Before 2022: India sourced most of its crude oil from the Middle East.
Post-Ukraine War: Due to sanctions on Russia and discounted rates, Indian refiners began purchasing more Russian oil.
June 2025: India imported over 2.2 million barrels per day of Russian oil, even surpassing combined imports from Saudi Arabia and Iraq.
This trade strategy has helped India manage domestic fuel prices and reduce dependency on traditional oil partners amid global price volatility.
