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The US House of Representatives has advanced the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, a legislation that could expose countries buying Russian energy to extra US tariffs. India, one of the crucial purchasers of Russian crude, could be impacted with 100 per cent tariffs if it is implemented. The Senate had earlier approved the legislation in August, while the House cleared it on September 16, sending it to US President Donald Trump for consideration.
What Is the Russia Sanctions Bill?
The legislation intends to boost economic pressure on Russia over its war in Ukraine. It proposes sanctions targeting Russians, financial institutions, the energy sector and entities engaged in sanctions evasion.
A crucial provision involves secondary tariffs on countries that continue to purchase Russian crude oil or natural gas. The legislation offers the US President authority to impose tariffs of up to 100% on imports from countries fulfilling the prescribed criteria.
The legislation also seeks to impose tariffs of up to 500% on imports directly from Russia. The exact tariff applicable to third countries would rely on how the law is executed.
How Is India Affected?
India has significantly grown its purchases of Russian crude since the Russia-Ukraine war affected traditional energy trade. Russian oil has become an important part of India's crude import basket, mainly because refiners have been able to access discounted supplies.
This makes India specially important to the proposed US measures. If the US imposes secondary tariffs, Indian goods approaching the US could face higher duties, possibly impacting exporters across sectors.
Impact on India's Oil Bill
Any substantial reduction in Russian crude purchases could need Indian refiners to source more oil from different suppliers. Based on international crude prices, shipping costs and discounts available from various suppliers, this could elevate India’s overall import expenditure.
The affect would also rely on how quickly refiners can adjust their crude mix and if alternative supplies are available at competitive prices.
What About India's US Exports?
The proposed tariffs establish a separate hurdle for Indian exporters. Higher US duties could boost the cost of Indian products in the American market and impact the competitiveness of exporters.
However, the legislation does not obviously imply that India will face a 100% tariff. The provision gives the US administration authority to execute such tariffs, meaning the actual impact would be based on subsequent US policy and implementation.
What Happens Next?
The House approval sends the legislation to President Trump for his decision. If framed and later implemented, its provisions could add another layer of uncertainty to India's Russian oil buys and its trade ties with the US.
For India, the boiling issues will be the eventual implementation of the sanctions law, the treatment of major Russian oil buyers and how the government and refiners reciprocate to any revisions in the global energy market.