The geopolitical landscape has shifted dramatically in the first week of 2026. US President Donald Trump has officially supported the “Sanctioning Russia Act of 2025”, a bipartisan bill that threatens to impose a 500% tariff on goods from countries that continue to purchase Russian crude oil.
This development places New Delhi in a precarious position, balancing its long-standing energy ties with Moscow against its critical $120 billion trade relationship with Washington. Meanwhile, Russian President Vladimir Putin has started the new year with a defiant vow of “absolute victory” in Ukraine.
Here is a detailed breakdown of the latest Russia-related news impacting India.
1. The “500% Tariff” Threat: What You Need to Know
US Senator Lindsey Graham confirmed on Wednesday that President Trump has given the “green light” to the new sanctions bill.
- The Rule: The bill mandates that the US President must increase duties to at least 500% on all goods and services from countries that “knowingly engage” in the exchange of Russian petroleum or uranium.
- The Targets: Senator Graham explicitly named India, China, and Brazil as the primary targets. He stated, “This bill will give President Trump tremendous leverage… to incentivize them to stop buying the cheap Russian oil that fuels Putin’s war machine.”
- India’s Risk: If passed next week, this law could destroy Indian exports to the US (textiles, pharma, IT) by making them unaffordable. However, the bill reportedly includes a “180-day waiver” clause, giving Trump room to negotiate.
2. India’s Oil Dilemma: Imports to Drop?
India is currently the world’s second-largest buyer of Russian seaborne crude, a trade worth over $168 billion since the war began in 2022.
- Pressure Mounting: The new US Ambassador-designate to India, Sergio Gor, is arriving in Delhi this weekend. He has already declared that stopping Indian imports of Russian oil is a “top priority.”
- Reliance Pauses Imports: Facing sanctions pressure, Reliance Industries, the operator of the world’s largest refining complex, has reportedly stopped receiving Russian oil cargoes for December and January.
- Govt Stance: While private refiners are backing off, Indian PSUs (like Indian Oil) increased their intake in November. The Indian government maintains that its energy purchases are driven by domestic interest and “affordability.”
3. Russia’s Stance: “Victory is Certain”
In Moscow, the mood remains combative as the war enters its fourth year.
- Putin’s Speech: In his New Year address, President Putin did not speak of peace talks but praised Russian troops as “heroes fighting for truth.” He vowed that 2026 would be the year of victory.
- “Axis of War”: The Kremlin has reacted furiously to European proposals to send peacekeepers to Ukraine. Russian Foreign Ministry spokesperson Maria Zakharova warned that any NATO or European troops in Ukraine would be considered “legitimate targets,” labeling the Western alliance an “axis of war.”
4. War Update: Massive Strikes in Ukraine
The economic sanctions are driven by the intensifying conflict on the ground.
- Recent Attacks: Between Wednesday and Thursday, Russia launched a massive wave of missile and drone strikes across Ukraine, hitting energy infrastructure in Odesa, Dnipro, and Zaporizhzhia.
- Impact: The UN reports that millions are without power and water in freezing winter conditions.
- Oreshnik Missile: There are unconfirmed reports and fears that Russia may use its new experimental hypersonic missile, the “Oreshnik,” for further strikes if Western nations finalize security guarantees for Kyiv.
Frequently Asked Questions (FAQs)
Q1. Will the 500% tariff apply to all Indian goods?
If the bill becomes law, the US President has the power to apply the 500% duty on all goods and services from the target country. However, Trump may use this as a threat to force a deal rather than applying it immediately to everything.
Q2. Why is the US targeting India now?
The US believes that by buying cheap Russian oil, India is indirectly funding Russia’s military in Ukraine. President Trump wants to cut off this revenue stream to force Russia to end the war.
Q3. Is India stopping Russian oil imports?
Private refiners like Reliance have paused imports due to sanctions risks. However, state-run companies (PSUs) are still buying, though volumes might drop in January due to the new US pressure.
Q4. What is the “Sanctioning Russia Act of 2025”?
It is a US bill introduced by Senators Lindsey Graham and Richard Blumenthal. It aims to punish countries that help Russia evade sanctions by trading in oil and gas.
Q5. What did Putin say about the war in 2026?
Putin expressed confidence in a Russian victory and rallied citizens to support the army. He did not mention any immediate plans for a ceasefire.