- The US Senate passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on August 7 by an 86-11 vote, targeting Russia and key buyers of its petroleum products such as China and India.
- The Global Trade Research Initiative (GTRI) warned that Indian exports could face additional US tariffs of up to 100 per cent if India continues buying Russian crude oil, as India is the second-largest buyer of Russian crude.
- Russia supplied 30.3 per cent of India's crude imports in FY2026, worth USD 40.8 billion, helping reduce costs and contain inflation, according to GTRI Founder Ajay Srivastava.
- The bill does not automatically impose a 100 per cent tariff on India; Section 113 directs the US president to impose additional tariffs of up to 100 per cent on goods from countries that continue buying Russian crude oil or natural gas 30 days after the law takes effect and rank among the five largest buyers.
- The bill's sponsors have identified China, India, Slovakia, Hungary and Azerbaijan as the five largest buyers of Russian crude, and these tariffs would be added to existing US duties, including those under Sections 301 and 232, as well as anti-dumping and countervailing duties.
- India is also buying substantially more energy from the US: American crude imports rose from USD 6.6 billion to USD 9.1 billion in FY2026, while total US energy purchases reached USD 12.5 billion, including LNG worth USD 1.4 billion, LPG worth USD 896 million and petroleum coke worth USD 861 million.
The US Senate passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on August 7 by an 86-11 vote. This legislation allows President Trump to impose tariffs of up to 100% on goods from countries that are among the top five importers of Russian oil and gas.1256
According to the Global Trade Research Initiative (GTRI), India, as the second-largest buyer of Russian crude, could face significant tariffs. In FY2026, Russia supplied 30.3% of India's crude imports, valued at USD 40.8 billion, which has helped reduce costs and contain inflation.34
GTRI emphasized that the stakes are high: “Giving it up under pressure would impose real costs on the Indian economy.” The bill does not automatically impose tariffs; instead, it directs the US president to act within 30 days if countries continue buying Russian crude.78
The bill identifies China, India, Slovakia, Hungary, and Azerbaijan as the largest buyers of Russian crude. These tariffs would be added to existing US duties, including those imposed under Sections 301 and 232, as well as anti-dumping and countervailing duties.910
Historically, Washington has penalized India while sparing China, having imposed a 25% Russia-related tariff on Indian goods in July 2025, which was lifted in February 2026. Meanwhile, India has increased its energy imports from the US, with American crude imports rising from USD 6.6 billion to USD 9.1 billion in FY2026.1112
“The bill's Section 113 directs the US president to impose tariffs on countries that continue buying Russian crude and rank among the five largest buyers, including India. Russia supplied 30.3% of India's crude imports in FY2026, worth $40.8 billion, helping contain inflation.”
