India Warns U.S. Sanctions on Russian Oil Could Harm Bilateral Ties

India's government issued a formal warning on Thursday that a U.S. bill imposing sanctions on buyers of Russian oil could harm diplomatic relations between New Delhi and Washington. The Ministry of External Affairs stated the legislation, which has passed both houses of Congress, also risks disrupting global energy markets.

U.S. Legislation Nears Enactment

The bill received final approval from Congress after passing the House of Representatives this week and the Senate last month. According to the source material, a White House official indicated that President Donald Trump intends to sign the legislation into law in the coming days.

The measure grants the U.S. president new authority to impose tariffs on countries that purchase Russian petroleum products. This could directly impact the five largest buyers, a group that includes China, India, and U.S. ally Turkey.

New Delhi's Stance

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In its statement, India's Ministry of External Affairs confirmed the issue has been discussed at high levels with U.S. officials, where India outlined the potential consequences. This marks the first time New Delhi has publicly warned that the bill could negatively affect its relationship with Washington.

The ministry stressed its commitment to "ensuring energy security for its 1.4 billion people" and stated it would continue to pursue "diversified sourcing" of energy based on market dynamics. India is currently Russia's top buyer of seaborne crude.

Market Implications

The potential for new U.S. restrictions adds another layer of uncertainty for Indian refiners, who are already navigating supply challenges from ongoing conflict in the Middle East, according to a Bloomberg News report. In response to market volatility, Indian refiners have been increasing their purchases from a variety of other suppliers, including the United States, Brazil, Canada, Venezuela, and nations in Africa.