India issued a warning on Thursday that newly proposed US measures targeting countries importing Russian oil could negatively affect bilateral relations, while reaffirming its commitment to securing energy supplies for its population.

Earlier the same day, the US House of Representatives approved a comprehensive sanctions and tariff bill aimed at intensifying economic pressure on Russia due to its invasion of Ukraine. The legislation, now awaiting President Donald Trump’s signature, authorizes tariffs as high as 100% on imports from China, India, and other nations to discourage reliance on Russian energy.

The Indian Ministry of External Affairs acknowledged the bill’s passage and noted that New Delhi has raised concerns with multiple US officials over recent months. It emphasized that India has clearly communicated the potential consequences for bilateral relations and the global energy market.

India remains steadfast in its goal to ensure energy security for its citizens by sourcing supplies from a variety of sellers based on market conditions. The ministry stated that the government is determined to take all necessary steps to protect its trade and economic interests, working closely with trade and industry groups to address the bill’s implications.

As the world’s third-largest oil importer, India is a major purchaser of Russian crude, which has helped Moscow sustain its budget since the full-scale invasion of Ukraine in 2022 and the imposition of Western sanctions. India has consistently resisted calls to reduce its oil imports from Russia, citing the need for affordable, reliable energy to support its large population and growing economy.

Sources familiar with the matter revealed that Indian refiners have secured oil supplies for September and October, including Russian crude. Two refining industry insiders expressed concerns that if President Trump enforces the proposed tariffs, oil prices could surge sharply. They urged the government to engage US authorities to seek relief measures.

Due to the ongoing conflict in the Middle East, oil supplies have already diminished significantly. Cutting Russian imports further would severely impact refiners’ profits, as they are currently selling fuel below market prices. These refiners are advocating for a phased approach, requesting the government to negotiate a relaxation of the 100% tariff to allow existing contracts to be fulfilled and to establish a quota for Russian oil purchases.

Meanwhile, Indian analysts warn that the threat of new US tariffs on Indian exports could complicate ongoing trade negotiations between the two countries, potentially delaying or hindering a trade agreement. Ajay Srivastava, founder of the Global Trade Research Initiative and former trade official, suggested that Washington might leverage tariff threats to pressure India into reducing Russian oil imports and accepting a less favorable trade deal.

Despite months of discussions, India and the US have yet to finalize a trade agreement, with India seeking more balanced terms. Indian Trade Minister Piyush Goyal is scheduled to attend the G20 trade ministers’ meeting in the United States later this month, where he is expected to meet bilaterally with US Trade Representative Jamieson Greer to discuss the future of the trade pact.