India may face challenges in quickly finding alternatives to Russian oil and is expected to continue its purchases from Russia, even in light of potential U.S. tariffs of up to 100% on Indian goods. This information was shared by analysts and reported by OilPrice.
India stands as the second-largest importer of Russian crude oil, following China. In the past few months, nearly half of India’s crude oil imports have come from Russia, creating a significant reliance on these supplies.
### Potential U.S. Tariffs
In September, U.S. President Donald Trump signed a bill known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The Act imposes expanded sanctions and tariffs against Russia while extending existing sanctions against Iran.
This new law gives the U.S. president the power to impose high tariffs on countries that substantially import Russian oil and natural gas. As a major buyer of Russian resources, India could be vulnerable to these tariffs on its exports to the U.S.
India’s representatives have been in discussions with U.S. officials about these concerns, highlighting the potential negative impacts on both their trade relations and the global energy market.
### Concerns About Prices and Supply
Prerna Gandhi, an associate fellow at India’s Vivekananda International Foundation, pointed out that swiftly replacing Russian oil could lead to increased import costs for India and may also contribute to rising inflation domestically. She noted that shipping issues in the Middle East and rising Brent crude prices (which have surpassed $100 per barrel) are significant concerns.
Gandhi suggested that the U.S. might have its own reasons to avoid removing millions of barrels of Russian oil from the global market, especially during a period of increasing oil prices and record-high rates for gasoline and diesel fuel in the U.S. Therefore, India may seek potential exemptions from the new U.S. law to protect its interests.
