A new US law, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, threatens 100 per cent tariffs on Russian oil importers, including India and China.
The US House of Representatives passed the bill on Wednesday, 262-159. President Trump’s signature is required for the tariff imposition to take effect.
India and China are the major buyers of Russian oil. Beijing bought half of Russia’s crude exports as of the end of August, followed by New Delhi, which purchased 37 per cent, BBC reports.
“Beijing opposes sanctions that do not have a basis in international law or authorisation from the UN Security Council,” Chinese foreign ministry spokesperson Guo Jiakun said.
India’s Ministry of External Affairs stated, “As expressed on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and based on evolving market dynamics.”
The bill targets Russia’s energy revenue by imposing tariffs on major foreign buyers of crude and natural gas.
It also grants the imposition of targeted sanctions on vessels, logistical entities, maritime operators, and penalises high-ranking Russian leadership, state officials, banking institutions, and energy sector enterprises.
Pressure will fall not only on Russia, but also on countries requiring a replacement for 3.5 million barrels per day of Moscow’s supply.
“The issue is not simply whether Russian barrels can be redirected to other buyers, but whether enough alternative crude is available to replace them without tightening the global market further,” says Sumit Ritolia, an analyst at the maritime intelligence firm Kpler.
India is especially exposed. India imports more than 88 per cent of its crude oil and more than 60 per cent of its LPG.
According to the Centre for Research on Energy and Clean Air, India was the seventh-largest LNG importer from Russia until the end of June 2026.
Global Trade Research Initiative’s Ajay Srivastava believes that “India should not allow US tariff threats to determine its energy policy.”
The bill lands a day after the BRICS Summit in New Delhi, where Global South leaders advocated for a multipolar world system. The countries also condemned unilateral economic sanctions.
The tariff threat is a means to bargain with India and China. What happens next will depend on how promptly Trump signs the bill and whether India or China will adjust oil sourcing or absorb the tariff risk.
