India has warned Washington that new US measures against purchases of Russian oil could affect their bilateral relations, the South Asian country's foreign ministry said, quoted by Reuters, BTA reported.
The statement followed the approval today by the US House of Representatives of a massive sanctions and tariffs bill aimed at increasing economic pressure on Russia over its invasion of Ukraine.
The bill, which has already been sent to President Donald Trump for signature, gives the US head of state the authority to impose high tariffs of up to 100 percent on imports from China, India and other countries, in order to reduce their purchases of Russian oil and gas.
The Indian foreign ministry said it had taken note of the passage of the bill in the US, adding, that in recent months, Delhi has raised the issue with various US officials and has "very clearly outlined" the potential implications for bilateral relations and the international energy market.
India remains "firmly committed" to ensuring energy security for its population and will continue to source from a variety of suppliers depending on market dynamics, the ministry said.
“The Indian side has also clearly stated its determination to take all necessary measures to protect its trade and economic interests,” the ministry said, adding that the government will work closely with trade and industry organisations to address the implications of the legislation.
India, the world's third-largest oil importer, is among the largest buyers of Russian oil. The revenue is believed to be helping Moscow fill its budget after it invaded Ukraine in 2022 and was hit with sweeping Western sanctions.
Delhi has repeatedly resisted pressure to curb its trade in Russian oil, saying the country's large population and economy need secure, affordable and reliable energy supplies.
Indian refiners have secured oil supplies for September and October, including from Russia, according to sources familiar with the matter.
Two flour mill sources said they were urging the government to raise the issue with US authorities as oil prices would rise sharply if Trump decides to impose new tariffs.
Oil supplies have been severely reduced by the war in the Middle East, and curbing Russian supplies would have a serious impact on refiners' profits, as they are already selling fuel at below-market prices. the sources said.
Refiners want the government to provide some relief rather than a 100 percent tariff. This would allow them to phase out existing deals and set a quota for purchases of Russian oil from India, the sources added.
Indian analysts said the possibility of the US imposing new tariffs on Indian goods could complicate ongoing trade talks between India and the US and potentially delay or make it more difficult to reach a trade deal.
After months of talks, India and the US have yet to reach a consensus on a trade deal, with Delhi pushing for more favorable terms.
Indian Commerce Minister Piyush Goyal will travel to the US for a meeting of G20 trade ministers later this month. He is expected to hold a bilateral meeting with US Trade Representative Jamieson Greer and discuss further steps on the agreement.