‘We’ll cross that bridge’: Jaishankar on 500 pc US tariff threat over Russian oil
Jaishankar, who is on a four-day visit to the US, said India, a major buyer of Russian oil, was aware of the potential implications of the bill
External Affairs Minister S Jaishankar stated that India has conveyed its concerns to US Senator Lindsey Graham over a proposed bill that could impose tariffs of up to 500 per cent on countries importing Russian oil, a measure that would affect India as well.
Jaishankar, who is on a four-day visit to the US, said India, a major buyer of Russian oil, was aware of the potential implications of the bill.
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“I think our concerns and our interests in energy security have been made conversant to him. So, we will then have to cross that bridge when we come to it, if we come to it,” he said.
Keeping close watch
At a press conference in Washington, the External Affairs Minister emphasised that India closely monitors developments in the US Congress that are relevant to its interests or could have an impact on the country.
Referring to the proposed bill introduced by Republican Senator Lindsey Graham, Jaishankar said Indian officials and the Embassy were in regular contact with the senator. Graham, while introducing the bill, specifically named India and China, and alleged that the two nations purchase 70% of Russian oil exports.
Jaishankar was responding to questions about the proposed legislation that aims to impose steep 500 per cent tariffs on imports from countries maintaining trade relations with Russia, an action that would particularly impact India and China because of their ongoing energy dealings with the Kremlin.
Aired energy concerns
“Regarding Senator Lindsey Graham's bill, any development which is happening in the US Congress is of interest to us if it impacts our interest or could impact our interest. So, we have been in touch with Senator Graham. The embassy and ambassador have been in touch,” he said.
“Our concerns and our interests on energy security have been made conversant to him. So, we'll then have to cross that bridge when we come to it, if we come to it,” news agency ANI quoted the Union minister as saying.
US bid to pressure Russia
The bill is viewed as part of efforts by the Trump administration to pressure Russia into negotiating an end to the war in Ukraine. If passed, the legislation could subject Indian exports to the US to an enormous 500 per cent tariff.
However, India is on the verge of finalising a trade agreement with the US, racing against time to avert a 26% reciprocal tariff announced by Trump in April. The deal is expected to significantly reduce US tariffs on Indian goods.
India’s rising oil imports
At the heart of the issue are India's rising crude oil imports from Russia, which now account for approximately 40–45 per cent of the country’s energy needs.
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In fact, India’s imports of Russian oil soared to a 10-month high of 1.96 million barrels per day (bpd) in May. The volume has been so significant that Russian oil now surpasses India’s imports from its traditional West Asian suppliers.
This shift began in 2022, following Russia’s invasion of Ukraine and the subsequent wave of Western sanctions. In response, Russia began offering crude oil at prices lower than those of Middle Eastern producers. Countries like India and China seized the opportunity, with Indian refiners increasing imports of discounted Russian crude.