India vows to protect energy security as US Russia bill opens door to 100% tariffs
The Ministry of External Affairs stated that India remains committed to ensuring energy security for its population through diversified sourcing based on evolving market dynamics, in response to the US sanctions legislation threatening tariffs on Russian oil and gas buyers.
The government indicated it would take necessary measures to protect its trade and economic interests if the bill is signed into law.
Official data cited shows Russia accounted for roughly 30.3% of India's crude oil imports in FY2026, valued at about $40.8 billion out of total crude imports worth $134.7 billion.
The Ministry noted the matter has been discussed at senior levels with US counterparts in recent months, indicating ongoing bilateral engagement ahead of the bill's passage.
India's Strategic Petroleum Reserve (SPR) Programme
India's Strategic Petroleum Reserve, built and managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a special purpose vehicle under the Ministry of Petroleum and Natural Gas, stores crude oil in underground rock caverns to cushion the economy against sudden supply disruptions, distinct from refiners' routine commercial inventories.
The SPR programme is one concrete instrument India can draw on to smooth short-term supply shocks if tariff-driven disruptions to Russian crude flows materialize, even though its buffer capacity is far smaller than the several-months reserves maintained by International Energy Agency (IEA) member countries.
Crude Oil Import Basket Diversification
India imports over 85% of its crude oil requirement, making import diversification — sourcing crude from multiple countries and regions to avoid overdependence on any single supplier — a core pillar of its energy security strategy, alongside reserves, domestic exploration, and renewable energy expansion.
Key Details
- India's crude basket has recently drawn heavily from Iraq, Russia, Saudi Arabia, and the UAE, with the United States also emerging as a growing supplier following expanded US shale exports.
- Russia's share rose sharply after 2022 due to price discounts following Western sanctions on Russian oil, making it India's largest single source for much of FY2025-26.
- Government policy explicitly frames diversification (rather than dependence reduction alone) as the strategy: expanding supplier relationships in the Gulf, Africa, and the Americas while continuing Russian purchases where commercially advantageous.
India's stated response to the US bill — greater diversification rather than an abrupt halt to Russian purchases — reflects this established strategy of spreading supply risk across multiple sourcing relationships rather than concentrating it.
India's Sovereign Right to Trade and the "Energy Security" Doctrine in Foreign Policy
India has consistently articulated energy security as a sovereign national-security concern, similar to food and defence security, that justifies independent import decisions regardless of external pressure, provided no binding multilateral sanction (such as a UN Security Council resolution) is violated.
Key Details
- No UN Security Council resolution currently prohibits the purchase of Russian oil; restrictions such as the G7/EU price cap and US/EU unilateral sanctions are outside the UN framework and not binding on non-adherent states like India.
- India has cited its obligation to secure affordable energy for over 1.4 billion people as the basis for continuing diversified purchases, including from Russia.
- This doctrine complements India's broader "strategic autonomy" approach in foreign policy, under which India avoids formal alignment with any single power bloc on contested global issues.
By framing its position around energy security rather than any political alignment with Russia, India signals that its import decisions will be driven by economic and supply considerations, positioning any future tariff action by the US as a trade dispute rather than a sanctions-compliance issue.
- Russia supplied about 30.3% of India's crude oil imports in FY2026, worth approximately $40.8 billion of a total crude import bill of $134.7 billion.
- India's Phase 1 Strategic Petroleum Reserve capacity is 5.33 MMT across Visakhapatnam, Mangaluru, and Padur, covering roughly 9-10 days of national crude requirement.
- Phase 2 SPR expansion (approved 2021) adds 6.5 MMT capacity at Chandikhol and Padur.
- India imports over 85% of its crude oil needs, with Iraq, Russia, Saudi Arabia, and the UAE among its top suppliers through 2026.
- The proposed US legislation could allow tariffs of up to 100% on top purchasers of Russian oil and gas, pending presidential action.