US Warns India of Secondary Sanctions Over Russian Oil Trade

The latest warning from Washington signals a sharper turn in the US approach toward India’s energy ties with Moscow. Scott Bessent’s remarks about the possibility of higher tariffs and expanded Secondary Sanctions make it clear that Indian purchases of Russian oil are no longer just an economic issue in American eyes. They’re pulling it as a geopolitical lever. The timing is deliberate, tied directly to the Trump-Putin meeting in Alaska. The message is that India’s trade decisions could sway negotiations. Linking tariffs on Indian goods to Russia’s willingness to negotiate peace puts Delhi in a complicated spot, especially given the current 50% cumulative tariff load.

Will Europe Join Secondary Sanctions Push?

There has been a push for European nations to align with sanctions by the US Treasury Secretary. Bessent’s criticism wasn’t subtle. He directly calls out European continued imports of refined fuels from India. India, in turn, uses Russian crude, making the point that sanctions are only as effective as their weakest link. Demanding that European nations join in Secondary Sanctions also shifts the debate from Washington’s pressure on Delhi. It now acts as a broader question about whether the transatlantic alliance is willing to act in unison, even if it means economic pain at home. The reluctance Bessent noted at the G7 hints at a familiar pattern. They have strong rhetoric paired with selective enforcement.

Meanwhile, India is holding its ground. Russian oil now accounts for roughly a third of its crude imports, up from negligible levels just before the war began. In August alone, refiners processed 1.8 million barrels per day, surpassing June’s volumes. The economics are clear for Indian buyers. Currently, favorable pricing and refinery compatibility outweigh political risk. The stance is reinforced by the Ministry of External Affairs’ charge that the tariffs are “unfair” and highlight a double standard. It has been cited how European trade with Russia remains far larger in value than India’s.

US Targets Russia’s Shadow Fleet

The US is also showing a willingness to go after Russia’s shadow fleet more aggressively. Around 270 tankers have already been sanctioned, which is about 35% of the network. This is moving toward the kind of maximum pressure model seen before with Iran. It is aimed at pushing down the logistics of Moscow’s energy exports. If this accelerates, the impact could be uneven. It can directly impact countries that have built supply chains around Russian oil.

The Trump-Putin summit is the immediate stage for this pressure campaign. However, the underlying strategy seems longer-term term squeezing Russia’s key customers. So that in the long run, trade volumes fall enough to bite into war financing. India’s position in that equation is central, which is why both the tariffs and the call for European nations to join Secondary Sanctions have been pushed so forcefully this week. The real test will be whether this converges into a coordinated, sustained effort or remains a mix of unilateral moves and rhetorical sparring.