Trump signs sanctions law that could hit India's Russian oil imports

President Donald Trump enacted the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, a measure that allows the United States to impose tariffs up to 100% on goods from any country that maintains purchases of Russian oil and gas. Although the bill does not single out a specific nation, analysts warn it threatens India, whose share of Russian crude rose to 55% in July and has become a cornerstone of its energy supply amid the Ukraine war and the West Asia conflict.

China, Turkey and Egypt also rank among the top importers, and Beijing has denounced the law as contrary to its opposition to unilateral sanctions. The legislation arrives as global oil shipments are already strained by disruptions in the Strait of Hormuz, Bab el-Mandeb and a recent drone attack on Saudi Arabia’s east-west pipeline, making it harder for Indian refiners to replace Russian barrels. A senior executive at an Indian refinery said shifting to alternative sources in Africa, Latin America or the United States would increase spot prices, freight and insurance costs. India’s foreign ministry confirmed high-level discussions with the United States to safeguard its trade and economic interests and to limit any broader impact on the international energy market.