US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, granting authority to levy tariffs of up to 100 per cent on major buyers of Russian energy, including India, while expanding sanctions on Moscow and Tehran.
US President Donald Trump signed into law on September 18, 2026, a major bipartisan sanctions package that significantly expands Washington’s toolkit against Russia and Iran. Officially titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (H.R. 5334), the legislation authorises the administration to impose tariffs of up to 100 per cent on imports from countries that rank among the world’s largest purchasers of Russian crude oil or natural gas. India, currently one of the top buyers of Russian oil, sits squarely in the potential crosshairs of the new measure.
The White House confirmed the signing in a statement noting that the law “authorizes and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran.” Named after the late Republican Senator Lindsey Graham, a prominent Russia hawk who died in July 2026 after championing the bill for more than a year, the measure cleared the Senate by an 86-11 vote on August 7 and the House of Representatives by 262-159 on September 16.
Broad New Powers Targeting Energy Buyers
The core tariff provision directs the US Trade Representative, in consultation with the Secretaries of State and Energy, to identify the five largest importers of Russian crude oil or natural gas by total volume over the 12 months preceding enactment. Countries that remain on that list and continue purchasing Russian energy more than 30 days after the law takes effect can face duties of up to 100 per cent on their goods entering the United States. The list is to be reassessed every 180 days.
The law also covers countries that knowingly make new purchases of Russian energy after the effective date or that rank among the leading facilitators of sanctions evasion. An exemption exists for natural gas: nations whose Russian gas imports accounted for less than 15 per cent of Russia’s total gas exports in the relevant period and that have taken “significant steps” to reduce those imports may qualify for relief. This carve-out is expected to shield several European countries but offers little protection to major Asian buyers such as India and China.
Importantly, the legislation does not automatically impose a 100 per cent tariff on any country. The President retains substantial discretion over which nations are targeted, the precise rate selected (anywhere up to the 100 per cent ceiling), and whether to grant waivers by certifying to Congress that doing so serves the national interest. The law itself takes effect within 30 days of signing.
Beyond tariffs, the Act intensifies pressure on Russia by authorising sanctions on senior officials including President Vladimir Putin, key financial institutions, defence-related networks, and the so-called “shadow fleet” of tankers used to move Russian oil outside Western restrictions. It simultaneously extends existing US sanctions targeting Iran for another five years.
India’s Reliance on Russian Crude
For India the stakes are high. The country imports more than 88 per cent of its crude oil requirements. According to analysis by the Global Trade Research Initiative (GTRI), Russia supplied crude worth $7.27 billion in July 2026, accounting for 51.1 per cent of India’s total crude imports of $14.21 billion that month. Vessel-tracking data from Kpler showed Russian volumes at roughly 2.08 million barrels per day in August, still representing about 45 per cent of India’s total oil imports and higher shares in preceding months.
This represents a dramatic shift from the pre-2022 pattern, when Gulf suppliers dominated India’s basket and Russia’s share remained below 15 per cent. Discounted Russian barrels became commercially attractive after the Ukraine conflict redirected global energy flows. Subsequent disruptions linked to conflict in West Asia further elevated Russia’s role.
India has previously adjusted its sourcing in response to US pressure. Russian crude imports fell sharply after earlier American sanctions on major Russian producers and after Washington linked reduced Russian purchases to the removal of a 25 per cent punitive tariff that had been imposed on Indian goods. That additional duty was eliminated in February 2026. Yet purchases rebounded as alternative Middle Eastern supplies faced constraints.
Implications for Energy Security and Bilateral Trade
New Delhi has repeatedly flagged the potential consequences of the legislation for India-US ties, energy security and the international oil market. Indian officials have stressed that decisions on energy procurement are driven by commercial viability and the imperative of securing affordable supplies for 1.4 billion people. Union Minister of State for External Affairs, Kirti Vardhan Singh, described potential tariffs as “unfair” and reiterated that India would continue sourcing energy from locations offering the most economical options.
Analysts note that the new statutory authority could give Washington additional leverage in ongoing bilateral trade negotiations. The prospect of steep tariffs may be used to encourage India to curb Russian oil purchases while seeking concessions on market access or other commercial issues. At the same time, any abrupt reduction in Russian volumes risks raising domestic fuel prices or straining government finances, particularly ahead of key regional elections.
China faces parallel exposure as the single largest buyer of Russian crude. Other countries occasionally mentioned in discussions include Brazil, Japan and certain European states, depending on how the administration interprets the criteria.
Discretion, Timing and Political Calculations
The breadth of presidential discretion has drawn mixed reactions. Supporters argue the legislation supplies clear criteria and necessary tools to choke off revenues financing Russia’s war in Ukraine. Critics question the scope of executive authority and warn of unintended consequences for global energy markets and US consumer prices. Some observers suggest Trump may hesitate to impose high tariffs that could raise costs ahead of the November midterm elections.
The law arrives against the backdrop of earlier tariff frictions. In 2025 the administration had imposed elevated duties on Indian goods partly linked to Russian oil purchases; those were later rolled back. The new measure restores a congressional foundation for similar actions, potentially distinguishing it from earlier measures that relied primarily on executive emergency powers.
Broader Geopolitical Context
Russia has cautioned that additional sanctions could complicate efforts toward a settlement in Ukraine. China has rejected what it terms “long-arm jurisdiction” lacking basis in international law. For India the challenge is to balance its strategic partnership with Russia – rooted in decades of defence, energy and diplomatic cooperation – with the desire for stable and expanding economic ties with the United States.
Related coverage on evolving India-Russia economic engagement and regional energy dynamics can be found at owsa.in and owsa.in.
As the 30-day clock begins, markets, policymakers and refiners will watch closely for the first determinations by the US Trade Representative and any signals from the White House on implementation. The legislation does not dictate an immediate 100 per cent tariff on Indian exports. It does, however, place a powerful new instrument in the hands of the US administration and injects fresh uncertainty into India-US commercial and energy relations at a sensitive moment.
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