U.S. Sanctions Law Threatens India's Russian Oil Trade With Tariffs Up to 100%

President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on Friday, September 18, 2026, authorizing tariffs of up to 100% on goods from the five largest importers of Russian crude oil or natural gas that make new purchases after enactment. India, the second-largest buyer of Russian crude behind China, could face the full tariff rate on its exports to the United States. Russian crude accounted for nearly half of India's oil purchases in recent months, with imports reaching a record 2.8 million barrels per day in July, according to Kpler vessel-tracking data. Kpler analyst Sumit Ritolia expects India's Russian purchases to stabilize just above 2 million bpd. India's Foreign Ministry said it remains committed to energy security for its 1.4 billion people through diversified sourcing and will take all necessary measures to protect its trade interests. The legislation complicates months-long U.S.-India bilateral trade negotiations.