India caught in crosshairs of US bill against Russia

Hindustan Times

3 hours ago

India's economic ties with Russia are in the spotlight again after influential US Senator Lindsey Graham publicly pushed for a new sanctions bill that will also target countries that do business with Moscow. 'I've got 84 co-sponsors for a Russian sanctions bill that is an economic bunker buster against China, India, and Russia for Russia's brutal invasion of Ukraine. I think that bill's going to pass,' Graham said in a television interview on Sunday. US Senator Lindsey Graham looks on in Capitol Hill in Washington, D.C., U.S., June 5, 2025. (Reuters)
Graham was referring to the Sanctioning Russia Act of 2025, which was introduced in US Senate in April this year. The bill proposes steep American tariffs on goods and services exports from countries that purchase Russian-origin oil, natural gas, uranium and petroleum products. It also pushes for expanded sanctions against Russian businesses, government institutions and top policymakers.
Also Read | India welcomes Russian Prez Putin's offer of direct talks with Ukraine's Zelensky
India was the second largest buyer of Russian fossil fuels in May 2025, according to the Centre for Research on Energy and Clean Air. It estimated that India purchased fossil fuels worth €4.2 billion from Russia in May, with crude oil amounting to 72% of the total. However, the proposed bill also allows the President of the United States to issue a one-time waiver of 180 days to a particular country in case 'if the President determines that such a waiver is in the national security interests of the United States'.
The bill is intended to put economic pressure on Russia and force it to the negotiating table to end the Ukraine war. Graham , a close political ally of President Trump , has called on India to cut economic ties with Russia in the past. 'To China and India: if you continue to prop up Putin's war machine, you'll have nobody to blame but yourself,' he wrote on X, a social media website, on June 13.
Also Read | Navigating India-Russia relations in the Trump era
So far, the Sanctioning Russia Act of 2025 has been read twice and referred to the Committee on Banking, Housing and Urban Affairs. It will subsequently have to be passed by the Senate, the House of Representatives and then signed by President Donald Trump before it becomes law. During an interview on Sunday, Senator Graham — who is the main sponsor of the bill — pushed for the Sanctioning Russia Act to be passed quickly.
'Trying to push Russian oil out of the market could cause a price shock. Exports from major suppliers like Iran and Venezuela have already been restricted by sanctions. If India and other countries are forced to stop buying Russian oil, then prices would rise,' explains Prashant Vashisht, Senior Vice President at ICRA, an investment information and credit ratings agency.
'India does face a risk of disruption to energy supplies. For example, we have been seeing increasing tensions in West Asia involving countries like Iran. While the situation is still uncertain, disruption of energy exports from major oil producers in the region due to an escalation would be disruptive. If you add to this by taking Russian oil out of the market, then that would create a challenging situation for India,' adds Vashisht.