US Sanctions Plan Raises India Trade Concerns
Washington/New Delhi: The United States and India are navigating diplomatic challenges as the U.S. considers secondary sanctions amid the Ukraine-Russia conflict. The United States State Department spokesperson Tammy Bruce addressed concerns in a July 29, 2025, U.S. State Department press briefing, about how such sanctions might affect allies like India, China, and the European Union, noting that the U.S. is carefully weighing impacts and prioritising diplomacy. President Donald Trump, emphasising sanctions and secondary sanctions as tools in his diplomatic approach, announced a 10-12 day deadline, shortened from a 50-day timeline, for Russia to engage in peace talks with Ukraine or face measures targeting nations trading with Russia.
India’s Ministry of Commerce and Industry today acknowledged the U.S. President’s remarks on bilateral trade and stated that India is reviewing their implications. The ministry reaffirmed its commitment to securing a fair and balanced trade agreement with the United States, a process underway for months, while stressing the need to protect Indian farmers, entrepreneurs, and micro, small, and medium enterprises. India highlighted its approach to safeguarding national interests, as seen in its recent Comprehensive Economic and Trade Agreement with the United Kingdom.
Sanctions targeting Russian oil purchases could pose challenges for India, which relies heavily on Russia for energy supplies, potentially complicating ongoing trade negotiations with the United States. In a July 17, 2025, briefing, India’s Ministry of External Affairs noted that European Union countries imported 18% of their natural gas from Russia in 2024, often through refined products from Indian refineries, and called for consistent sanction policies. To ensure energy security, India has increased oil imports from the United States and Brazil by 50% and 80%, respectively, in 2025, though Russian oil remains competitive due to favourable pricing.
Bruce noted that 80% of dual-use materiel supplied to Russia originates from China, but she did not specify actions targeting India. Meanwhile, India and the United States are deepening ties through initiatives like the India-United States Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology initiative, launched by President Trump and Prime Minister Narendra Modi on February 13, 2025. On April 21, 2025, U.S. Trade Representative Jamieson Greer confirmed that the Terms of Reference have been finalised to guide trade talks, which could face hurdles if sanctions are implemented.
India continues to balance its strategic interests, maintaining ties with the United States through the Quadrilateral Security Dialogue and with Russia via the Brazil, Russia, India, China, and South Africa grouping. India has advocated for dialogue to resolve the Ukraine-Russia conflict while abstaining from United Nations resolutions condemning Russia, reflecting its effort to manage competing geopolitical pressures. As the U.S. deadline nears, both nations are working to sustain economic cooperation. The outcome will likely shape India-U.S. relations and India’s energy strategy in the coming months.
– global bihari bureau
