The new US law authorises tariffs of up to 100% on imports from major buyers of Russian crude and natural gas, potentially putting India’s heavy reliance on Russian oil at risk and adding pressure to diversify its energy supplies.
President Donald Trump signed H.R. 5334, the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” into law on 18 September 2026. The House of Representatives passed the legislation two days earlier with a 262-159 vote. The bill authorises and expands sanctions, tariffs, and prohibitions targeting Russia while extending existing restrictions on Iran.
The law takes effect within 30 days of the president signing it. It requires Trump to impose duties of up to 100% on goods imported from the world’s five largest purchasers of Russian crude oil or natural gas by volume during the 12 months before enactment.
Countries can escape gas-related duties only if Russian gas imports accounted for less than 15% of Russia’s total gas exports during the applicable period and the country has taken significant steps to reduce those imports.
Targeting Russia’s energy and war machine
The legislation targets Russia’s shadow fleet and foreign entities supporting Russian energy production or sanctions evasion, including vessel owners, operators, managers, insurers, and other parties engaged in covered activities. The bill also imposes new sanctions on Russian political and military officials alongside foreign networks supplying Russia’s war efforts.
Trump has wide discretion over implementation, including which countries face tariffs, what tariff rates apply, and whether to waive sanctions provisions against certain nations. The White House said the measure aims to deplete Russia’s ability to fund its war with Ukraine by targeting oil and natural gas revenues.
India faces tariff risk
The move carries significant implications for India, which depends on imports for over 88% of its crude oil needs. Russia currently supplies nearly half of India’s oil imports.
According to vessel tracking data from commodity analytics firm Kpler, India imported 2.08 million barrels per day of Russian crude in August 2026, representing 45% of the country’s total oil imports. In the two months before August, that share exceeded 50%.
Indian officials have discussed the bill’s potential impact with US authorities. The Ministry of External Affairs said on 17 September 2026 that the issue has been discussed at high levels in recent months, and India has clearly articulated both the bilateral relationship implications and effects on the international energy market.
Russian crude remains India’s most practical and competitive supply source, particularly following disruptions to Gulf oil flows through the Strait of Hormuz. Analysts say the supply is extremely difficult to replace in the current market, though India is diversifying toward African, North American, and South American crude.
Earlier, in July, the US Senate advanced a bipartisan Russia sanctions bill with an 86–12 vote, giving President Trump authority to impose tariffs of up to 100% on the five largest buyers of Russian oil and gas, including India.
