The United States has approved the 'Russian Sanctions Bill', which proposes tariffs of up to 500% on countries importing oil from Russia. Although the bill has not yet been voted on, it signals potential pressure on nations such as India and China to halt purchases of discounted Russian crude. The move comes amid an unfinished US-India trade agreement, with US Commerce Secretary Howard Lutnick suggesting delays were linked to a lack of direct communication between Prime Minister Narendra Modi and President Donald Trump.

India, a major buyer of Russian oil, has already reduced imports following earlier US tariff threats. Experts warn that if the bill passes, India could face severe export losses, with $87.4 billion in trade with the US at risk. Ajay Srivastava of the Global Trade Research Initiative said the bill’s passage is unlikely but urged India to clarify its oil policy. Former trade secretary Ajay Dua described the measure as weaponizing trade.

Analysts note the bill could primarily target India while sparing China, potentially straining India-US relations further. The US has also withdrawn from the India-led International Solar Alliance, adding to diplomatic friction.