India has warned that proposed US tariffs targeting buyers of Russian oil could affect bilateral relations, hours after Washington advanced legislation aimed at increasing economic pressure on Moscow over the war in Ukraine.

The warning came after the US House of Representatives approved a sanctions and tariff bill that would give President Donald Trump authority to impose tariffs of up to 100% on countries purchasing Russian energy products. The legislation is intended to reduce dependence on Russian oil among major importers, including India and China, and now awaits the president’s signature to become law.

India’s Ministry of External Affairs said New Delhi has been monitoring the development and has raised concerns with US officials through diplomatic channels in recent months.

According to the ministry, India has clearly conveyed the potential impact such measures could have on bilateral relations and international energy markets.

In a statement, the ministry reaffirmed India’s commitment to ensuring energy security and said the country would continue sourcing energy from a variety of suppliers based on market conditions and national interests.

The ministry added that India would take all necessary measures to protect its commercial and economic interests and would work closely with trade and industry stakeholders to address any consequences arising from the proposed legislation.

India, the world’s third-largest oil importer, has become one of the largest buyers of Russian crude since Western sanctions were imposed on Moscow following its full-scale invasion of Ukraine in 2022.

New Delhi has repeatedly resisted pressure to reduce purchases of Russian oil, arguing that affordable and reliable energy supplies are essential for supporting its population and economy.

Industry sources said Indian refiners have already secured Russian crude supplies for September and October deliveries.

Refinery officials have expressed concern that implementation of the proposed tariffs could lead to higher global oil prices. They noted that energy markets are already under pressure due to disruptions linked to ongoing tensions in the Middle East.

According to industry sources, the loss of Russian oil supplies could significantly affect refinery profitability. Some refiners have urged the government to seek exemptions or transitional arrangements that would allow existing contracts to be completed and provide limited access to Russian crude under a quota-based system.

Analysts say the tariff proposal could further complicate ongoing trade negotiations between India and the United States.

Ajay Srivastava, founder of the New Delhi-based think tank Global Trade Research Initiative and a former trade official, said Washington could use the tariff threat as leverage to encourage India to reduce Russian oil imports and influence broader trade discussions.

Despite months of negotiations, India and the United States have yet to reach a comprehensive trade agreement.

Later this month, Indian Commerce Minister Piyush Goyal is expected to travel to the United States for the G20 Trade Ministers’ Meeting, where he is also expected to hold bilateral talks with US Trade Representative Jamieson Greer on the future of trade negotiations.