Key Takeaways
A revised US Senate bill unveiled July 14 names India among five countries facing tariffs up to 100% for buying Russian crude, down from an earlier 500% proposal. The five crude buyers named are China, India, Slovakia, Hungary and Azerbaijan; a separate gas provision shields Japan, France, Hungary and Belgium via a 15% import threshold.
India’s Russian crude imports hit a record EUR 4.5 billion in June, up 34% month-on-month per CREA data, with Reliance’s Jamnagar refinery intake up 150%. The bill arrives ahead of a July 22 India-US trade deal deadline. It still needs Senate and House passage; the tariff rate isn’t fixed, and Trump retains waiver authority.
New Delhi: A revised US Senate bill that could impose tariffs of up to 100% on India for buying Russian crude has opened a fresh friction point with Washington, landing just as the two countries race to close a bilateral trade deal before a self-imposed July 22 deadline.
The legislation, unveiled on July 14 by a bipartisan group of senators, names India alongside China, Slovakia, Hungary and Azerbaijan as the five largest buyers of Russian crude that could face the tariff.
A separate gas provision exempts countries importing under 15% of their gas from Russia, shielding Japan, France, Hungary and Belgium, even as India gets no equivalent relief on crude.
Government sources say the asymmetry amounts to a double standard toward Europe that could strain ties further at a sensitive stage of trade talks.
What The Bill Proposes
The bill is a revised version of the Sanctioning Russia Act, first introduced in April 2025 by Senator Lindsey Graham and Senator Richard Blumenthal, which drew over 80 cosponsors but stalled in Congress.
Graham died on July 11 after a brief illness, days after returning from Ukraine; Blumenthal, Jeanne Shaheen and Roger Wicker have since proposed passing the bill in his honour. The White House, including Treasury Secretary Scott Bessent, negotiated the revised text, and Trump has signalled support.
| Provision | Detail |
|---|---|
| Original bill | Sanctioning Russia Act, April 2025, Graham and Blumenthal |
| Revised version unveiled | July 14, 2026 |
| Maximum crude tariff | Up to 100%, cut from 500%; final rate set by USTR |
| Countries named, crude | China, India, Slovakia, Hungary, Azerbaijan |
| Countries named, gas | China, France, Japan, Hungary, Belgium |
| Gas exemption threshold | Under 15% of gas from Russia, plus active reduction |
| Presidential waiver | Yes, if deemed in national interest |
| Pending steps | Senate committee, floor vote, then House passage |
Source: Reuters, RFE/RL, The Hill reporting on bill text and sponsor statements, July 13-15, 2026
Why India Is In The Crosshairs
Data from the Centre for Research on Energy and Clean Air showed India’s Russian crude imports climbed 34% month-on-month in June to a record EUR 4.5 billion, making India the second-largest buyer of Russian hydrocarbons after China.
Crude accounted for 83% of India’s total EUR 5.5 billion in Russian energy imports for the month, while India’s overall crude imports rose a much smaller 5.4%, showing Russian barrels are gaining share within the country’s import basket.
| Stock | Key Trigger | Trader View |
|---|---|---|
| Reliance Industries | Jamnagar refinery’s Russian crude intake up 150% MoM in June | Largest listed beneficiary of discounted Russian barrels |
| Indian Oil Corporation | Paradip refinery’s Russian crude intake up 126% MoM in June | PSU refiner with rising Russian sourcing share |
| Bharat Petroleum Corp | Kochi refinery’s Russian crude intake up 83% MoM in June | Smaller, growing exposure to Russian sourcing |
Source: CREA monthly Russia fossil fuel tracker, June 2026
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The Natural Gas Carve-Out
The gas provision has drawn the sharpest criticism from Indian officials, who note it shields Japan, France, Hungary and Belgium despite their continued Russian gas trade, while leaving India’s crude purchases exposed.
Officials also link India’s rising Russian imports to external supply shocks: the Strait of Hormuz crisis has disrupted much of India’s typical Middle East crude flow since late February, pushing refiners toward Russian barrels priced roughly $4-5 a barrel below Brent.
Trade Deal Implications
The bill lands as India and the US work to close a bilateral trade deal before the July 22 deadline, when a temporary additional duty on Indian goods lapses. USTR Jamieson Greer visited New Delhi in late June for what officials called a final round of talks; negotiators say the deal’s architecture is largely settled, but disagreements remain over labour clauses and matching terms offered to Vietnam and Indonesia.
A February 2 framework had already cut the reciprocal US tariff on Indian goods to 18% from 50%, partly for an Indian pledge to cut Russian oil purchases, a pledge New Delhi has not acted on as Russian imports instead hit a record in June.
What Investors Should Watch Next
| Event | Why It Matters |
|---|---|
| Senate committee review | Determines whether the bill advances to a floor vote |
| Senate floor vote | Needed before the bill can move to the House |
| House passage | Required before the bill can reach Trump’s desk |
| Presidential waiver decision | Trump can waive the tariff even after the bill becomes law |
| India-US trade deal (July 22 deadline) | Outcome could shape how any tariff is applied to India |
| Monthly Russian crude import data | Further increases would widen India’s exposure under the bill |
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Bottom Line
The bill still needs Senate committee clearance, a floor vote and House passage before reaching Trump’s desk, and the tariff rate isn’t fixed at 100%, it will be set by the USTR within a range, with the President retaining waiver authority.
That makes it a negotiating lever for now rather than a settled outcome, though the gas carve-out sparing Europe while leaving India exposed on crude gives New Delhi grounds to push back.
This article is for informational purposes only and does not constitute investment advice. Trading in securities and F&O is subject to market risk. Please consult a SEBI-registered investment advisor before making investment decisions.
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