India discusses US Sanctioning Russia and Iran Act implications on bilateral ties and energy markets

New Delhi: The Indian government on Thursday stated that it had discussed with the USA the potential implications of the 'Sanctioning Russia and Iran Act' on bilateral ties and on international energy markets, indicating that bilateral relations may be adversely impacted if the Act is given a green signal by the White House.

"This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side," the Ministry of External Affairs informed through a statement hours after the passage of the Sanctioning Russia and Iran Act in the US Congress.

The Indian government has noted the passage of the Act in the US Congress, according to the MEA statement. "We are monitoring further developments on this matter. As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics." The statement noted that the government will not compromise on energy security.

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The Indian government has also made clear its determination to take all necessary measures to protect its trade and economic interests and the government will work closely with Indian trade and industry bodies to deal with the implications of these developments, the statement said amid threat of tariffs and in the backdrop of the trade pact that is being negotiated with the USA.

The Lindsay O Graham Sanctioning Russia and Iran Act of 2026, passed by the US Senate last month, was approved by the House in a 262-159 vote on Wednesday.

The Act authorises President Donald Trump to impose stiff tariffs of up to 100% on countries, including India and China, to reduce their dependence on Russian oil and gas, and extend sanctions on Iran.

The Act has been sent to Trump to sign into law.

In a rather arrogant statement, US Senator Richard Blumenthal on Wednesday told India to "clean up your act" after Congress passed the Act. "To China and India: You better clean up your act. Buy your oil and gas somewhere else. Appeasement is not a strategy," said Blumenthal. Sources told ET that any absence of Russia from the international oil market at a time when Iran is absent from the market and sourcing from West Asia is a challenge that will play havoc with global oil prices.

Last year, Trump imposed 25% tariffs on India for purchasing Russian oil, but later withdrew it as trade deal negotiations with India progressed.