Trump Signs Sanctioning Russia Act, Raising Concerns for India's Crude Oil Imports

US President Donald Trump Friday signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving himself the authority to impose tariffs of up to 100% on countries , including India and China, that continue buying Russian oil and gas . The law “authorizes and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran,” the White House said in a statement. The Act is named to honour a veteran Republican Senator and a Russia hawk who died in July. The United States Trade Representative, the federal agency responsible for developing and recommending United States trade policy to the President, said in a social media post that the signing of the bill “demonstrates the growing bipartisan recognition that tariffs are an effective tool to safeguard our economic and national security and establish lasting peace and prosperity.” The agency flagged how the Congress had “granted major tariff authority to the President for the first time since 1974, delivering a critical tool to hold trading partners accountable and bring an end to the Russia-Ukraine war.” The move came after the US House of Representatives on Wednesday passed the sweeping sanctions legislation, aimed at cutting Russia’s revenues from oil and gas exports and increasing economic pressure on Moscow over the war in Ukraine. The development is significant for India as it depends on imports to meet over 88% of its crude oil needs, and Russia currently accounts for nearly half of these. According to vessel tracking data from commodity market analytics firm Kpler, India imported 2.08 million barrels per day (bpd) of Russian oil in August, accounting for 45% of the country’s total oil imports. The share was even higher, at over 50%, in the preceding two months. India would almost certainly push for waivers, and it would make sense for the US to agree as a friendly concession given the current energy crisis sparked off by the Iran war, according to at least two analysts who spoke to The Indian Express on condition of anonymity. Notably, Trump called on Ukraine earlier this week to halt strikes on Russian refineries, given the runaway oil and petroleum product prices amid stifled supplies in the global market. Experts ask will he now risk taking more Russian oil off the market by imposing punitive tariffs on countries buying Russian crude in large quantities. At least till the West Asia crisis persists, Trump might want to exercise restraint and caution in implementing the proposed legislation in full force. Doing the opposite would worsen an already worrying supply situation and send oil and fuel prices soaring even higher, something the Trump administration wouldn’t want ahead of the midterm polls in the US. For its part, India would most certainly move to communicate its energy concerns to Washington, something that was done last year as well when the original draft of the Bill was mooted, officials indicated. India has been in touch with US authorities over the legislation. The statement by the MEA on Thursday said: “This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side.” With much of the West shunning Russian crude following the country’s February 2022 invasion of Ukraine, Russia began offering discounts on its oil to willing buyers. Indian refiners were quick to avail the opportunity, leading to Russia — earlier a peripheral supplier of oil to India — emerging as India’s biggest source of crude, displacing the traditional West Asian suppliers. Russian oil proved to be a strong energy security hedge amid the West Asia crisis, as oil flows from the Gulf dried up. About 40% of India’s crude imports usually came through the Strait of Hormuz before the war, and a large chunk of that supply has effectively been offline due to the highly constrained energy flow through the waterway. Analysts say that despite the threat of sanctions, Russian crude remains the most practical and competitive source of supply for Indian refiners and is extremely difficult to replace in the current market. In the months preceding the West Asia war, oil imports from Russia had reduced notably as the US imposed sanctions on Russian oil majors Rosneft and Lukoil, and amid trade pact negotiations between New Delhi and Washington. The US made a meaningful reduction in Russian oil imports a prerequisite for scrapping its 25% additional penal tariff on India. In February, Indian refiners had imported just over 1 million bpd of Russian crude, almost half of the 2025 peak of over 2 million bpd. Even with the significant reduction in volumes, Russia was India’s largest source of crude in February, accounting for about fifth of its total oil imports. But as supplies from West Asia dwindled due to the effective closure of the Strait of Hormuz, Russian oil came to India’s aid and volumes surged to historic highs. The US itself issued sanctions waivers on purchase of Russian crude amid the West Asia conflict. India’s crude import strategy has shifted sharply since March 2026 as Strait of Hormuz disruptions tightened West Asian oil flows and increased freight risks. While Russian crude remains the backbone of India’s import slate, refiners have diversified aggressively towards African, North American, and South American barrels to offset the drop in supplies from the Gulf. Interestingly, oil imports from Venezuela — now effectively under US control — in August jumped 60.2% over July to 350,000 bpd, the Kpler data shows.