July 31, 2026: The Global Trade Research Institute (GTRI) has urged India not to change its crude oil import policy in response to proposed US sanctions targeting buyers of Russian energy, saying decisions should be guided by the country's economic interests, energy security and strategic autonomy rather than the threat of higher tariffs.

The recommendation comes after the US Senate moved a step closer to passing legislation that would give President Donald Trump the authority to impose tariffs of up to 100% on imports from countries that continue to buy Russian oil and gas, including India. The bill still needs approval from the House of Representatives and the President before it can become law.

Even if enacted, the tariffs would not take effect automatically. The legislation gives the US President the discretion to decide whether to impose tariffs, which countries to target and what tariff rate to apply.

GTRI noted that Russia supplied 30.3% of India's crude oil imports in FY26, making it the country's largest oil supplier. India imported $40.8 billion worth of crude from Russia out of total crude oil imports of $134.7 billion during the year.

The think tank said discounted Russian crude has helped reduce India's import bill, strengthened energy security and kept inflation in check. It also argued that the US has increasingly used trade measures to pursue strategic objectives, citing reciprocal tariffs, Section 301 investigations, forced labour measures, sector-specific duties and the proposed Russia-related sanctions.

"As long as Russian crude remains commercially viable, India should continue sourcing it while managing differences with Washington through dialogue and negotiation, rather than making unilateral concessions under pressure," GTRI Founder Ajay Srivastava said.

Under the proposed legislation, the US Trade Representative would review the five largest buyers of Russian energy every 180 days before the President decides whether to impose tariffs. Based on current trade patterns, those countries are likely to include China, India, Slovakia.uy

(Source: CNBC)