The United States enacted the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which President Trump signed into law on Friday. The legislation authorizes and expands sanctions, tariffs, and prohibitions targeting Russia’s energy sector while extending existing sanctions on Iran.
The law grants the President authority to impose trade tariffs of up to 100% on countries identified as among the five largest importers of Russian crude oil or natural gas, provided they continue making new purchases of these products following the bill’s enactment. India stands as the second-largest importer of Russian crude oil globally, behind only China, with Russian imports representing nearly half of India’s total crude purchases in recent months. India’s average crude imports from Russia reached 2.8 million barrels per day in July, representing an all-time monthly high, though volumes moderated slightly in the following month due to Ukrainian infrastructure attacks and competition from China for Russian supplies.
The potential tariffs create complications for India’s energy policy and diplomatic relations with the United States, particularly as the two nations have been engaged in months of bilateral trade negotiations. India’s Ministry of Foreign Affairs responded by reiterating the country’s commitment to energy security for its population and stated it would continue diversifying its crude sources based on market conditions. Officials emphasized concerns about tariff implications for both the bilateral relationship and global energy markets.
India indicated it would take measures to protect its trade and economic interests while coordinating with domestic trade and industry bodies. The situation presents a policy dilemma for India, as sharply reducing Russian oil imports could require purchasing costlier alternative supplies, potentially affecting refiners and consumers ahead of upcoming state elections in territories governed by Prime Minister Modi’s political party. Analysts noted that the timing of the legislation could impede progress on the nascent U.S.-India trade agreement negotiations.
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