A newly enacted U.S. sanctions law could create major complications for India, which continues to buy large volumes of Russian crude. The measure, the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” was signed by President Donald Trump on Friday.
The law authorizes the president to impose tariffs of up to 100% ad valorem on all goods imported into the United States from countries that rank among the five largest importers of Russian crude oil or natural gas, if they knowingly make new purchases after the law’s enactment.
That provision is particularly sensitive for India. The country is the second-largest importer of Russian crude after China, and in recent months Russian supply has accounted for nearly half of India’s total crude purchases. That leaves New Delhi exposed to potential tariffs of up to 100% on goods it exports to the United States.
Discounted Russian oil has become an important part of India’s energy mix in recent years. Now, however, that strategy risks colliding with broader economic costs, especially as India and the United States have spent months negotiating a bilateral trade deal.
At the end of August, Sumit Ritolia, Manager Modelling Refinery and Oil Markets at Kpler, told Bloomberg that India’s purchases from Russia were likely to stabilize at just above 2 million barrels per day going forward. Vessel-tracking data from Kpler also showed that India’s Russian crude imports hit an all-time high of 2.8 million barrels per day in July, up from the previous record of 2.7 million barrels per day in June. In July, Russian barrels made up more than half of India’s total crude imports.
Those volumes eased slightly in August. The decline was linked to Ukrainian attacks on Russian export infrastructure and stronger competition from China for Russian cargoes.
India has already responded to the U.S. law by saying energy security remains its priority. The Foreign Ministry said the country remains firmly committed to ensuring energy security for its 1.4 billion people and will continue to do so through diversified sourcing and in line with evolving market conditions.
New Delhi also said it had discussed the issue at a high level with various U.S. officials and had raised concerns about the implications of possible tariffs not only for bilateral ties but also for the international energy market. The ministry added that the government would take all necessary measures to protect India’s trade and economic interests and would work closely with Indian trade and industry bodies.
India now faces a difficult choice. A sharp reduction in Russian oil imports would force it to seek more expensive alternative supplies, hurting both refiners and consumers. The issue is also politically sensitive ahead of elections due in several states in the coming months, where Prime Minister Narendra Modi’s party is in power.
Analysts say the situation could remain manageable for India if the United States delays any tariffs or opts for only mild duties. But the fact that Congress has now explicitly authorized such a move complicates months of trade talks between New Delhi and Washington. Michael Kugelman, a senior fellow at the Atlantic Council, told Reuters that from the perspective of the trade negotiations, the legislation could hardly have come at a worse time.
