Trump’s new sanctions law gives Washington power to impose tariffs of up to 100 per cent on major buyers of Russian energy, adding pressure to India’s trade and energy policy
India is facing renewed pressure to reduce its dependence on Russian crude after US President Donald Trump signed legislation giving his administration authority to impose tariffs of up to 100 per cent on countries that continue buying Russian oil and gas.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed on September 18, expands Washington’s sanctions powers and targets major purchasers of Russian energy, including India and China. The legislation does not automatically impose a 100 per cent tariff on India but gives the US president the authority to do so.
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The development comes as India remains heavily dependent on imported crude
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More than 88 per cent of its crude requirements are met through imports, while Russian oil accounted for about 45 per cent of total crude imports in August, according to vessel-tracking data cited by The Indian Express
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Imports from Russia had risen sharply after disruptions to oil supplies from West Asia.
India has defended its right to secure affordable and reliable energy supplies. The Ministry of External Affairs has said New Delhi will continue sourcing oil from different suppliers according to market conditions and has warned Washington that the new measures could have implications for bilateral relations and global energy markets.
The pressure creates a wider policy challenge for New Delhi. Reducing Russian purchases could expose Indian refiners to higher costs and tighter supplies, while maintaining them could increase the risk of US trade penalties. Analysts have also noted that Russian crude remains difficult to replace quickly amid continuing disruptions to West Asian energy flows.
The debate increasingly points towards de-risking rather than complete decoupling. India has already expanded sourcing from Africa, North America and South America, while also increasing purchases from countries such as Venezuela.
