Indian PM Modi implores Putin to end Ukraine war amid U.S. tariff threat on Russian oil

• Russia supplied approximately 43% of India's oil imports through August 2024, making it India's largest crude supplier amid global energy shortages caused by the Iran war
• The U.S. House is expected to pass the Graham bill later this month, proposing tariffs up to 100% on top five purchasers of Russian oil and gas, including China and India
• The U.S. previously imposed 25% punitive tariffs on India in August 2025 for Russian energy trade (later reduced to 18%), and is now pushing India to replace Russian oil with Venezuelan crude

Summary: Indian PM Modi Urges Putin to End Ukraine War Amid U.S. Tariff Threats

Key Developments:

Indian Prime Minister Narendra Modi called on Russian President Vladimir Putin to end the Ukraine war during a bilateral meeting at the Shanghai Cooperation Organization summit on Monday. Modi emphasized that "every day that the war continues, humanity takes a step backwards" and expressed India's support for peace efforts and cessation of hostilities.

Market Context:

India's dependence on Russian crude oil has increased significantly amid global energy shortages caused by the Iran war. Russia currently supplies approximately 40% of India's oil imports as of June-July data, with the figure reaching 43% through August 24. Russian oil exports to India rose between April and July compared to the previous year.

Tariff Implications:

The U.S. House is expected to pass the Graham bill later this month, proposing tariffs up to 100% on countries ranking among the top five purchasers of Russian crude oil or gas. This legislation targets major buyers including India and China.

Previously, President Trump imposed 25% punitive tariffs on India in August 2025 over Russian energy trade, bringing total levies on Indian exports to 50%. These tariffs have since been reduced to 18% in 2026. The U.S. is actively promoting Venezuelan crude as an alternative to Russian oil for India.

Geopolitical Tensions:

Russia's Defense Ministry reported continued strikes on Ukraine's energy infrastructure, including a devastating warehouse attack that killed 38 people. Security experts warn of potential winter assaults targeting Ukrainian energy systems, raising humanitarian concerns.