US Treasury Secretary: India ‘Stopped’ Russian Oil Imports; 500% Tariff Threat Focuses on China | GovtMitra

International Relations

US Treasury Secretary: India ‘Stopped’ Russian Oil Imports; 500% Tariff Threat Focuses on China

Jan 21, 2026 GovtMitra Desk Washington/New Delhi

Image: The White House (Wikimedia Commons)

Washington DC: In a major geopolitical update, US Treasury Secretary Scott Bessent has claimed that India has halted its purchase of Russian oil following the imposition of 25% tariffs by the Trump administration. He clarified that the looming threat of 500% tariffs is now primarily directed at China.

Key Statement: India “Geared Down”

Speaking in an interview on Tuesday, Scott Bessent addressed the aggressive “Russia Sanctions Bill” recently greenlit by President Donald Trump. While the bill allows for tariffs up to 500% on nations financing Russia’s war effort through energy purchases, Bessent drew a sharp distinction between India and other buyers.

“India started buying Russian oil after the conflict began, but President Trump put a 25% tariff on them, and India has geared down and has stopped buying Russian oil.”

— Scott Bessent, US Treasury Secretary

500% Tariff: Targeting China & Brazil

Bessent indicated that the stringent 500% tariff proposal, spearheaded by Senator Lindsey Graham, is intended to create leverage against countries like China and Brazil that continue to purchase cheap Russian energy.

He further criticized European nations, stating, “We have Europe buying Russian oil, still, four years later, they are financing the war against themselves.”

Exam Corner (UPSC/SSC/Banking)

Who is the US Treasury Secretary? Scott Bessent.
What is the Bill? Russia Sanctions Bill (Proposing 500% Tariffs).
IEEPA: Bessent mentioned President Trump can use the International Emergency Economic Powers Act (IEEPA) to impose tariffs without new Senate authority.
India’s Stance: MEA Spokesperson Randhir Jaiswal stated India is “closely monitoring” the bill and remains guided by energy security for its 1.4 billion people.

India’s Response: “Closely Monitoring”

The Ministry of External Affairs (MEA) has maintained a cautious stance. MEA Spokesperson Randhir Jaiswal recently confirmed that New Delhi is aware of the bipartisan bill and is tracking all developments.

India reiterated its sovereign right to secure energy at affordable prices, a policy it has maintained since the beginning of the Russia-Ukraine conflict. However, the US Treasury Secretary’s latest claim suggests a significant shift in trade flows due to the new tariff regime.

Frequently Asked Questions

Q: Has India completely banned Russian oil?

While the US Treasury Secretary claims India has “stopped,” official trade data shows a significant reduction, likely due to a mix of tariffs and payment issues, not necessarily an official ban.

Q: What is the impact of 25% tariffs on India?

The 25% tariff makes Russian oil more expensive than Middle Eastern alternatives, nullifying the “discount” benefit that India enjoyed.

Q: Will the 500% tariff apply to India?

Currently, US officials indicate this extreme measure is leverage intended for China and Brazil, provided India continues to reduce its Russian exposure.