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US Sanctions Law Threatens India's Russian Oil Trade
Confirmed
In Short: US President Donald Trump signed a new sanctions law that could impose up to 100% tariffs on countries importing large volumes of Russian oil, potentially affecting India's trade.
US President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on Friday, authorizing and expanding sanctions on Russia and extending existing sanctions on Iran.
The new legislation gives Trump the authority to impose tariffs of up to 100% on the top five purchasers of Russian oil and gas, with China and India being the most significant targets.
India, one of the largest buyers of Russian crude oil, could face these tariffs if it continues to import significant volumes of Russian oil.
In July, India's imports of Russian crude oil hit a record high, accounting for more than half of its total crude oil imports.
However, the timing of the new sanctions law could complicate ongoing negotiations between India and the United States for a bilateral trade deal.
Michael Kugelman, a senior fellow at the Atlantic Council, told Reuters that the new legislation could sour trade relations between the two countries.
The sanctions bill also targets Russian President Vladimir Putin, senior government figures, banks, and financial institutions, as well as Russia's 'shadow fleet' of tankers used to circumvent existing sanctions.
Senator Richard Blumenthal described the legislation as 'scorching sanctions' that would 'throttle Putin's war machine.
The bill's passage comes amid ongoing Ukrainian attacks on Russian export infrastructure, which have affected Russian refinery operations and pushed fuel oil exports to a record low.
India's imports of Russian crude oil have come under scrutiny, with Ukrainian drone attacks and competition from China for Russia's barrels denting India's intake of Moscow's oil.
The sanctions could raise costs for shipowners and power generators already contending with disruptions to global energy trade.
India's imports of Russian oil eased slightly in August, but the new sanctions law could still pose a significant challenge to its trade relations with the United States.
What this adds
The sanctions law could potentially sour trade relations between India and the United States, complicating ongoing negotiations for a bilateral trade deal.
The sanctions could affect India's imports of Russian oil, which have been under scrutiny due to Ukrainian attacks on Russian export infrastructure.
Background
U.S. President Donald Trump signed a new sanctions law that could impose up to 100% tariffs on countries importing large volumes of Russian oil, potentially affecting India's trade.
What's confirmed
- US President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on Friday, authorizing and expanding sanctions on Russia and extending existing sanctions on Iran.
- The new legislation gives Trump the authority to impose tariffs of up to 100% on the top five purchasers of Russian oil and gas, with China and India being the most significant targets.
- India, one of the largest buyers of Russian crude oil, could face these tariffs if it continues to import significant volumes of Russian oil.
- In July, India's imports of Russian crude oil hit a record high, accounting for more than half of its total crude oil imports.
- However, the timing of the new sanctions law could complicate ongoing negotiations between India and the United States for a bilateral trade deal.
- Michael Kugelman, a senior fellow at the Atlantic Council, told Reuters that the new legislation could sour trade relations between the two countries.
- The sanctions bill also targets Russian President Vladimir Putin, senior government figures, banks, and financial institutions, as well as Russia's 'shadow fleet' of tankers used to circumvent existing sanctions.
- Senator Richard Blumenthal described the legislation as 'scorching sanctions' that would 'throttle Putin's war machine.
- The bill's passage comes amid ongoing Ukrainian attacks on Russian export infrastructure, which have affected Russian refinery operations and pushed fuel oil exports to a record low.
- India's imports of Russian crude oil have come under scrutiny, with Ukrainian drone attacks and competition from China for Russia's barrels denting India's intake of Moscow's oil.
- The sanctions could raise costs for shipowners and power generators already contending with disruptions to global energy trade.
- India's imports of Russian oil eased slightly in August, but the new sanctions law could still pose a significant challenge to its trade relations with the United States.
What's still developing
- Moreover, the potential tariffs could sour trade relations just as New Delhi and Washington have been negotiating a bilateral trade deal for months.
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- Data from the Centre for Research on Energy and Clean Air, or CREA, shows that China accounted for 50% of Russian crude exports between December 2022 and August 2026, followed by India at 37%.
- Turkey and the European Union each accounted for 5% during the same time period, although Russian energy exports to the EU have been decreasing.
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- The biggest maker of network gear, Huawei struggled to hold onto its market share under sanctions that have blocked its access to most U.S. processor chips and other technology.
- The indictment alleges that, besides stealing trade secrets, Huawei and some of its subsidiaries did business in North Korea despite U.S.
- Russian forces launched strikes near the Yahodyn-Dorohusk border crossing along Ukraine’s western border with Poland on Sunday morning, Sept. 13, damaging a filling station and hitting the locomotive of a passenger train en route to Warsaw.
- Concurrently, state rail operator Ukrzaliznytsia reported that Russian munitions struck the locomotive of a passenger train traveling from Kyiv to Warsaw approximately two kilometers from the Polish border.
- “Act now: bring the full power of your sanctions against Putin’s aggressive regime,” Sybiha urged.
- In brief: Russian forces struck near the Yahodyn-Dorohusk checkpoint on the Ukrainian-Polish border on Sunday morning, Sept.