The Congress party has criticised the Narendra Modi government following the passage of a major Russia sanctions bill by the United States House of Representatives, arguing that the development raises questions about India’s foreign policy and its position on Russian energy imports.
The US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a vote of 262 to 159 on September 16. The legislation had earlier been approved by the US Senate and has now been sent to President Donald Trump for final action. The bill seeks to increase economic pressure on Russia by targeting its energy and defence sectors and vessels involved in efforts to evade existing sanctions.
One of the provisions in the legislation would give the US president authority to impose additional tariffs of up to 100 percent on countries that meet specified conditions relating to purchases of Russian crude oil or natural gas. India and China have been identified in reporting as countries that could potentially be affected by the provision because of their purchases of Russian energy. However, the legislation does not itself automatically impose a 100 percent tariff on Indian goods. Any such measure would depend on the conditions and presidential action specified in the legislation.
The Congress party used the development to renew its criticism of the Modi government’s foreign policy. Congress general secretary Jairam Ramesh said that appeasement would not benefit India and questioned the government’s response to the US legislation.
Congress has also linked the issue to recent changes concerning Merchant Discount Rate charges on certain UPI transactions. The opposition party has alleged that the decision to introduce charges for some merchant transactions was influenced by pressure from the United States and could benefit international card companies.
Congress leader Jairam Ramesh had previously questioned whether the new UPI Merchant Discount Rate framework was connected to concerns raised by the United States Trade Representative about India’s digital payments market. Congress has argued that the change represents a departure from the earlier zero MDR framework for UPI transactions.
The government, however, has rejected the allegation that the UPI changes were introduced because of pressure from the United States. According to government officials cited by The Indian Express, the new framework is intended to make the digital payments ecosystem financially sustainable and support continued innovation. Officials also said that the government is promoting domestic payment infrastructure, including RuPay debit cards, which remain outside the new MDR charge.
Under the revised UPI framework, the MDR will apply to certain person-to-merchant transactions above Rs 2,000 from October 15, according to the reported government framework. Person-to-person transactions will not be subject to the charge. The government has also indicated that the impact of the new system will be monitored after implementation.
The US sanctions legislation is primarily aimed at increasing economic pressure on Russia over its war in Ukraine. It includes measures targeting Russian energy revenues, the country’s leadership and a so-called shadow fleet of vessels accused of helping transport Russian oil while avoiding sanctions. The legislation also contains provisions concerning Iran.
The House vote followed approval by the US Senate in August. The final House vote saw 203 Republicans, 58 Democrats and one Independent vote in favour, while seven Republicans and 152 Democrats voted against the legislation, according to reports. Some opposition in the House focused on the extent of the tariff powers that would be granted to the US president.
For India, the legislation is significant because the country remains a major purchaser of Russian crude oil. The potential tariff provision could affect Indian exports to the United States if the administration applies the authority under the conditions specified in the law.
The Ministry of External Affairs has said that India is monitoring developments following the US congressional action and will take necessary steps to protect the country’s economic interests and energy security. This position differs from the Congress allegation that the government has been yielding to US pressure.
The dispute therefore involves two separate issues. The first is the possible impact of the US sanctions legislation on countries purchasing Russian energy. The second concerns domestic political debate in India over UPI transaction charges and whether those changes were influenced by international pressure.
The US legislation has not by itself established that India will face a 100 percent tariff. The authority would depend on the implementation of the law and the conditions specified in its provisions. Meanwhile, the Congress and the Union government continue to present different explanations regarding the reasons behind India’s recent UPI policy changes.
The developments are being closely watched because any additional US tariffs on Indian exports could have implications for bilateral trade, while restrictions affecting Russian energy purchases could also have consequences for India’s energy security and import costs.