FirstNarration
India has stated it will take all necessary measures to protect its economic interests following the United States Congress passing legislation that imposes fresh sanctions on Russia. The Indian government's response came shortly after the bill cleared both chambers of the US legislature, though it has not yet been signed into law.
The sanctions package targets Russian energy exports and financial institutions, and includes provisions that could affect countries maintaining significant trade relationships with Moscow. India has maintained close economic and defence ties with Russia for decades, making the new sanctions legislation a potential complication for New Delhi.
What the sanctions cover
The US legislation expands existing restrictions on Russian oil revenues and financial transactions. It also includes measures aimed at limiting Russia's ability to fund military operations through energy exports. While the bill primarily targets Russian entities, secondary sanctions provisions could affect third countries that continue substantial trade with Russia.
The specific mechanisms and timeline for implementation remain unclear, as the bill awaits presidential action. However, the broad language in the legislation has prompted concern among countries that depend on Russian imports, particularly in the defence and energy sectors.
India's economic exposure
India is one of Russia's largest trade partners outside the former Soviet sphere. Russian crude oil has become a major component of Indian energy imports over the past two years, with India significantly increasing purchases following the start of the Ukraine conflict when Western buyers reduced their intake.
Beyond energy, India's defence relationship with Russia remains substantial. A significant portion of Indian military equipment is of Russian origin, and ongoing procurement agreements include advanced systems such as the S-400 air defence missile system. Previous US sanctions legislation, specifically the Countering America's Adversaries Through Sanctions Act, included provisions that could penalise countries purchasing major Russian military equipment, though India received a waiver for the S-400 deal.
The Indian government has not detailed what specific measures it is considering, but the statement signals New Delhi's intention to maintain its strategic autonomy in foreign policy and trade decisions. India has consistently argued that its relationship with Russia is longstanding and independent of other geopolitical considerations.
Broader implications
The Indian response reflects a wider tension between US sanctions policy and the economic interests of countries that have historically maintained ties with Russia. Several major economies, including China and India, have continued trade with Moscow despite Western pressure, complicating efforts to isolate Russia economically.
For India, the challenge is managing relationships with both Washington and Moscow simultaneously. The US has become an increasingly important partner for India in recent years, particularly in technology, defence cooperation, and strategic alignment regarding China. At the same time, India has been unwilling to sever ties with Russia, viewing the relationship as strategically valuable and economically beneficial.
The practical impact of the sanctions will depend on how aggressively the US enforces secondary provisions and whether exemptions or waivers are made available. Previous sanctions regimes have included carve-outs for countries in specific circumstances, and India may seek similar accommodation.
The Indian government's statement did not specify whether it would seek to negotiate with Washington or simply proceed with existing trade arrangements regardless of potential US penalties. The measured language suggests New Delhi is waiting to see the final form of the legislation and how the US administration intends to implement it before taking concrete action.
