US President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, granting authority to impose tariffs of up to 100% on major buyers of Russian energy. The move directly targets China and India, which purchase 50% and 37% of Russia's crude exports respectively. India's Foreign Ministry vowed to protect its energy security for 1.4 billion citizens, warning that the tariff threat could disrupt ongoing bilateral trade negotiations with Washington.
US Russia sanctions bill
- ▪The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 targets Russian officials, financial institutions, defense-related networks, and the country's shadow fleet of energy-transporting vessels.
- ▪US President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on September 18, 2026.
- ▪The United States House of Representatives passed a sweeping Russia sanctions bill on September 16, 2026, following its passage by the Senate on August 7, 2026.
Russian oil import tariffs
- ▪Kremlin spokesman Dmitry Peskov stated that Moscow is monitoring the US Lindsey Graham Sanctioning Russia and Iran Act of 2026, characterizing its additional sanctions as unfriendly actions that will complicate efforts to find a peace settlement in Ukraine
- ▪The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 authorizes the US president to impose tariffs of up to 100% on goods from the five largest importers of Russian petroleum or natural gas.
- ▪The newly signed Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 does not automatically impose a 100% tariff on India or China, but instead establishes a legal pathway and grants the US president waiver authority under specified conditions
India energy security concerns
- ▪Indian Trade and Industry bodies plan to work closely with the Indian government to manage the economic and trade implications of the new US Lindsey O. Graham Sanctioning Russia and Iran Act of 2026
- ▪The Indian Ministry of External Affairs stated on September 17, 2026, that India remains firmly committed to ensuring energy security for its 1.4 billion people and will continue sourcing supplies from diverse sellers.
- ▪Indian refining sources stated that cutting Russian crude supplies would severely impact refiner profits because they are already selling domestic fuels at below-market costs amid Middle East supply reductions.
China India crude purchases
- ▪According to Kpler, the combined share of Russian oil imports by India and China increased from one-fifth to one-third of their total imports following the Hormuz crisis.
- ▪Chinese Foreign Ministry spokesperson Guo Jiakun stated that Beijing opposes US long-arm jurisdiction and will continue normal economic and trade cooperation with Russia based on equality and mutual benefit.
- ▪According to the Center for Research on Energy and Clean Air, China accounted for approximately 50% of Russia's crude exports from December 2022 to August 2026, while India purchased 37%.
BRICS sanctions opposition
- ▪During the BRICS Summit in New Delhi on September 12, 2026, Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, and Chinese President Xi Jinping condemned unilateral economic and secondary sanctions.
- ▪The Global South leaders at the September 2026 BRICS Summit issued a joint condemnation of unilateral sanctions without explicitly naming the United States.
India US bilateral trade
- ▪Indian Trade Minister Piyush Goyal is scheduled to travel to the United States for the G20 trade ministers' meeting to discuss the bilateral India-US trade deal with US Trade Representative Jamieson Greer
- ▪In February 2026, US President Donald Trump reduced previous punitive tariffs on Indian goods to 18% after claiming India agreed to halt Russian oil purchases and buy more energy from the US and Venezuela.
- ▪The threat of additional US tariffs poses an obstacle to concluding the bilateral trade agreement currently being negotiated between Washington and New Delhi.
Debatable claims
- ▪The US should impose tariffs on countries purchasing Russian oil
- ▪India should halt Russian oil purchases to avoid US tariffs
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