India Should Continue Buying Russian Crude To Protect Energy Security, Avoid US Trade Concessions Amid Tariff Threat: GTRI

New Delhi, Sep 17 (KNN) India should protect its energy security and continue buying Russian crude as long as it remains commercially competitive, while avoiding unilateral trade concessions to the US, the Global Trade Research Initiative (GTRI) said in a report.

The report comes after the US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 262-159 on September 16. 

The legislation, which had earlier cleared the Senate 86-11, now goes to President Donald Trump. It authorises the President to impose tariffs of up to 100 per cent on the five largest purchasers of Russian oil or gas, potentially exposing major buyers such as India and China to higher duties.

India’s Russian Oil Dependence Rises

“India should not trade away its energy security for temporary tariff relief. Neither signing a trade agreement nor stopping Russian oil purchases can protect it from future US action under Section 301, sectoral measures or other trade laws,” ANI reported, citing the report.

India imports more than 88 per cent of its crude oil requirements. In July 2026, the country imported USD 7.27 billion worth of crude from Russia out of total crude imports of USD 14.21 billion, according to the report.

Russia's share has increased significantly in recent years, while the contribution of Gulf suppliers has declined. GTRI attributed the shift partly to the West Asia crisis and said Russia alone supplied more crude to India in July than the UAE, Saudi Arabia, Venezuela, Brazil, Oman and the US combined.

GTRI Flags Wider US Trade Risks

The report noted that India could face pressure from Washington to reduce Russian oil purchases and make concessions in bilateral trade negotiations.

It also pointed to the additional 25 per cent Russia-related tariff imposed on Indian goods in July 2025, which was subsequently withdrawn in February 2026, as an indication that tariff measures could change independently of energy purchases.

GTRI highlighted that future US action could also involve Section 301 investigations, sector-specific measures and other trade laws, meaning that a trade agreement alone may not eliminate the risk of additional measures.

Impact on Exports Yet to Be Assessed

“India should not allow US tariff threats to determine its energy policy,” GTRI said, adding that discounted Russian crude has helped reduce India’s import bill and support energy security and inflation management. 

“India should continue buying Russian oil as long as it remains commercially competitive and negotiate firmly with Washington without granting unilateral trade concessions,” the think tank noted.

However, the report noted that the actual impact on Indian exports cannot be assessed until the US specifies the tariff rates, product coverage and implementation timeline. 

The legislation has not itself imposed a 100 per cent tariff on Indian goods; it provides the President with authority to impose such tariffs subject to the bill's provisions.

(KNN Bureau)