Russia Oil In The Crosshairs: Why India Isn’t Ready To Turn Off The Taps

India is unlikely to significantly reduce its imports of Russian crude in the near term despite the US Senate passing a legislation targeting countries that continue to purchase Russian energy, industry sources and analysts told Moneycontrol.

However, the development has increased the policy risk surrounding Russian oil flows into India. Any substantial disruption to these supplies could tighten global crude markets unless the lost volumes are replaced by alternative sources.

The US Senate on August 7 passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by an 86-11 vote. The legislation initially proposed tariffs of up to 500% on countries buying Russian oil but was subsequently revised to provide for secondary tariffs of up to 100%.

The Bill will now return to the US House of Representatives, which is expected to take up the Senate version after it reconvenes on August 31. It would then need to reach President Donald Trump for consideration.

Why Russian Crude Matters To India

Russian oil has emerged as a crucial component of India's energy supply, particularly as the West Asia conflict has disrupted traditional crude flows from the Middle East.

India imports around 88% of its crude oil requirements, with Russia accounting for a substantial share of those purchases. According to Kpler data cited by Moneycontrol, India's Russian crude imports rose to around 2.7 million barrels per day in June and July, accounting for more than half of the country's total crude intake.

This makes Russian supplies particularly important at a time when uncertainty surrounds Middle Eastern oil flows and global crude balances remain relatively tight.

"Russia has become a critical supply line and an important hedge against Middle Eastern supply disruptions," analysts said, according to Moneycontrol.

Replacing Russian Oil Could Be Difficult

A sharp reduction in Russian crude purchases could create difficulties for Indian refiners, particularly if alternative supplies are not readily available at comparable volumes and prices.

Analysts said that abruptly curtailing Russian crude flows to India or other Asian buyers could tighten global oil balances and put additional upward pressure on prices.

The impact would extend beyond crude prices. Higher international oil prices could increase India's import bill, widen the current account deficit and put additional pressure on the country's energy security.

For now, industry sources expect India to continue purchasing Russian crude, suggesting that the immediate impact of the US legislation is more likely to be an increase in policy uncertainty than an abrupt shift in India's sourcing strategy.

However, if Washington ultimately imposes significant penalties on countries continuing to buy Russian energy, Indian refiners and policymakers could face growing pressure to reassess the scale and economics of those purchases.