US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, giving him the power to impose tariffs of up to 100 per cent on goods from countries that continue to buy large amounts of Russian crude oil or natural gas.
India, one of Russia’s biggest oil customers, could be among the countries affected. China is also likely to come under scrutiny because it is the largest buyer of Russian crude. However, the law does not automatically put a 100 percent tariff on India or any other country. It gives the US president the authority to impose the tariff if the conditions set out in the law are met.
The law allows tariffs of up to 100 percent on goods from the five biggest buyers of Russian oil and gas. It does not name the countries that could face the duties or clearly explain how the top-five list will be worked out, leaving the US administration considerable room in deciding which countries to target.
The law will take effect 30 days after it was signed. Trump can also waive the tariffs by giving Congress a written certification that doing so is in the US national interest.
What does the new Russia sanctions law say?
The bill passed the US Senate by 86-11 in August and the House of Representatives by 262-159 on Wednesday. Trump signed it into law on Friday.
Apart from the tariff provision, the law puts sanctions on Russian President Vladimir Putin, senior government officials, oligarchs and Russian banks. It also targets Russia’s “shadow fleet” of tankers, which are used to move Russian oil while avoiding Western sanctions.
The law also extends the existing Iran Sanctions Act for another five years.
The goal is to put more pressure on Russia by reducing the money it earns from energy exports. At the same time, the tariff provision gives Washington a way to pressure countries that continue to buy Russian oil and gas.
India says energy security comes first
India had already responded to the legislation after the US House passed it.
The Ministry of External Affairs said India remains committed to ensuring energy security for its 1.4 billion people and will continue to source energy based on market conditions and from different suppliers.
“India remains firmly committed to ensuring energy security for its 1.4 billion people,” the MEA said.
The ministry said the issue had been discussed with senior US officials in recent months. India had also explained the possible impact of the US move on both the India-US relationship and the wider international energy market.
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the ministry said.
The government said it would work with trade and industry bodies to deal with the possible impact of the new US law.
How dependent is India on Russian oil?
Russian crude has become a major part of India’s oil imports since the Ukraine war began.
Before the war, Russian oil made up only about 0.2 per cent of India’s crude imports. Its share rose to around 35-40 per cent in 2025 as Indian refiners increased purchases of Russian crude.
Imports dropped under earlier US tariff pressure. Kpler data showed India was buying about 1.04 million barrels per day of Russian crude in February 2026. But purchases later increased again.
By July, Russia’s share of India’s crude imports had reached nearly 50 per cent, with imports touching about 2.96 million barrels per day, according to Kpler data cited in the supplied reports. India’s imports from the Middle East fell sharply during the same period.
The Global Trade Research Initiative estimated that India bought $40.8 billion worth of Russian crude in FY2026, almost one-third of the country’s total crude imports.
The impact could also be felt in the global oil market.
Kpler analyst Sumit Ritolia said replacing Russian crude at the current level would be difficult, if not impossible, for India.
Rachel Ziemba of Ziemba Insights said the threat of higher tariffs could even encourage some buyers to stock up on Russian oil before any new duties take effect.
Rystad Energy’s Janiv Shah said Indian refiners could instead seek exemptions, reduce spot purchases and ask Russian suppliers for bigger discounts rather than completely stop buying Russian crude.
The timing is also important because the oil market is already tight. Brent crude has stayed above $100 a barrel for seven straight sessions, while traffic through the Strait of Hormuz has fallen sharply. Any major change in India’s Russian oil purchases could therefore affect not only India but also global oil supplies and prices.
On the other hand, US tariffs on Indian goods had reached 50 per cent in August 2025 after Trump added a 25 per cent duty linked to India’s purchases of Russian oil.
An interim trade agreement later brought the rate down to 18 per cent. But the US Supreme Court’s February 20 ruling struck down the reciprocal duties.
The new Russia sanctions law is different. It does not order the president to impose a 100 per cent tariff on India. Instead, it gives the White House a new congressional authority to penalise major buyers of Russian energy.