U.S.-Russia Sanctions Put India’s Russian Oil Purchases Under Pressure

India’s continued purchases of Russian crude are facing renewed pressure after U.S. President Donald Trump signed a new Russia sanctions law giving Washington broad authority to impose tariffs of up to 100% on countries buying Russian oil or gas. India and China, among Russia’s largest energy customers, could be affected by the new measures.

The development creates a new challenge for Indian refiners, which have increased Russian crude purchases again in 2026 as disruptions in West Asian oil supplies have altered global trade flows.

Trump Signs New Russia Sanctions Law

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed into law on September 18.

The legislation targets Russia’s energy and defence sectors and its so-called shadow fleet of oil tankers. It also gives the U.S. president authority to impose additional tariffs of up to 100% on imports from countries that purchase Russian oil or gas or assist Russia in evading sanctions.

The law does not automatically impose a 100% tariff on India. Instead, it provides the U.S. administration with expanded authority to take such action.

Why India Is Under Pressure

India has become one of Russia’s largest crude-oil customers since the Russia-Ukraine war began in 2022.

Russian crude became particularly attractive to Indian refiners after Western sanctions reduced Russia’s traditional markets and Russian barrels were offered at discounts. India's share of Russian oil rose sharply, reaching around 35–40% of its crude imports in 2025, according to data cited by Business Standard.

The trade pattern changed several times as U.S. policy and global oil-supply conditions shifted.

In early 2026, Russian crude accounted for about 21.2% of India's total oil imports in January, according to Reuters. But purchases subsequently increased as disruptions to Middle Eastern supplies made Russian crude more valuable as an alternative source.

Russian Oil Purchases Rebounded in 2026

Kpler data cited by Business Standard showed India's Russian crude imports reaching approximately 2.82 million barrels per day in June, described as a historic high. Imports were around 2.08 million barrels per day in August.

The increase came as the conflict in West Asia disrupted shipments through the Strait of Hormuz, an important route for India's traditional Middle Eastern crude supplies.

That situation made diversification of crude sources more important for Indian refiners.

India Warns of Impact on Energy Security

New Delhi has responded by stressing the importance of energy security and diversified crude supplies.

Indian officials have warned that U.S. tariff measures could affect bilateral economic relations and global energy markets. Indian refiners have also urged the government to seek exemptions or quotas, warning that restrictions on Russian supplies could increase costs at a time when global crude markets are already under pressure.

India is the world's third-largest oil importer, leaving domestic fuel markets sensitive to changes in international crude prices and supply availability.

Global Oil Prices Add Another Complication

The sanctions pressure comes while the global oil market is already experiencing major disruptions.

Reuters reported that Russian ESPO crude rose above $120 a barrel in mid-September, while Urals crude also climbed to around $110 a barrel. Strong Chinese demand and disruptions linked to the conflict in the Middle East have contributed to the price increases.

That means replacing Russian barrels may not simply involve switching to another supplier at the same cost.

For India, refiners must consider crude price, shipping costs, availability, payment arrangements and the risk of secondary trade restrictions.

Indian Refiners Face a Changing Supply Picture

India's overall crude imports also declined in August.

Government data reported by Reuters showed August crude imports at 19.01 million metric tonnes, down more than 11% from July and around 3% below August 2025. The data is preliminary because some private refiners voluntarily disclose information.

The combination of lower overall imports, geopolitical disruption and renewed U.S. pressure on Russian crude is creating a more uncertain environment for Indian refiners.

What Happens to Russian Oil Purchases?

The immediate question is whether the new U.S. authority will actually be used against India and, if so, at what level.

India's Russian-oil purchases have already changed significantly in response to U.S. tariff policy, sanctions and global supply disruptions. The latest law adds another potential cost to continuing those purchases.

At the same time, sharply reducing Russian imports could force Indian refiners to seek additional barrels from the Middle East, the Americas and other suppliers—potentially increasing competition for available crude.

India therefore faces a complex supply and trade equation involving energy security, crude prices, U.S. trade policy and relations with Russia.

The extent of the impact will depend on how Washington implements the new tariff powers and how Indian refiners adjust their crude sourcing in the months ahead.

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