India to Review US Sanctions Law on Russia Before Acting
NEWZA Editorial Team•
⚡ Key Financial Takeaways
The US signed the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 on September 18, expanding sanctions on Russia.
The law gives the US President authority to impose tariffs up to 100% on countries that continue significant purchases of Russian energy.
India, a major importer of Russian crude oil, said it will study the law’s details before deciding how to respond.
Commerce Minister Piyush Goyal confirmed that India will discuss the matter at an appropriate time after reviewing the legislation.
India and the US are still negotiating a bilateral trade agreement, and Goyal is expected to meet US Trade Representative Jamieson Greer at the G20 Trade Ministerial in Milwaukee.
💡 Why It Matters
The US law introduces a new punitive tool that could raise the cost of Russian energy for countries that continue to buy it. For India, a major importer of Russian crude, this could translate into higher import duties and supply‑chain disruptions. The government’s careful review signals that India is weighing both economic and diplomatic ramifications before taking a stance, which could influence global energy markets and bilateral trade relations.
US sanctions law expands pressure on Russia On September 18, President Donald Trump signed the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 into law. The legislation broadens existing sanctions on Russia and introduces a new mechanism: the President can impose tariffs of up to 100 percent on any country that continues to purchase significant amounts of Russian energy. The 100 percent figure is a maximum threshold; it is not an automatic duty but a tool the President may use if deemed necessary.
India’s cautious stance In a press briefing on September 21, Commerce and Industry Minister Piyush Goyal told reporters that India would first examine the details of the new law before taking any action. "The details are now emerging. We will study them and discuss the matter at an appropriate time," Goyal said. He added that India’s response would be measured and based on a thorough review of how the sanctions could affect its trade and energy security.
Implications for India’s oil imports India remains one of the world’s largest importers of Russian crude oil. The potential for a 100 percent tariff on countries that continue buying Russian energy could have significant cost implications for India’s energy imports. While the tariff is not automatic, the possibility of its imposition adds a new layer of uncertainty for Indian importers and the broader energy market.
Ongoing trade talks with the US Separately, India and the United States are continuing negotiations on a bilateral trade agreement. Both sides maintain regular contact on the pact, and the trade discussions remain a priority for the Indian government. Piyush Goyal is expected to hold bilateral discussions with US Trade Representative Jamieson Greer during the G20 Trade Ministerial in Milwaukee later this month.
Looking ahead India’s decision on how to respond to the US sanctions law will likely be influenced by the outcomes of the ongoing trade negotiations and the evolving geopolitical landscape. The country’s next steps will be closely watched by market participants, especially those involved in the oil and energy sectors.
🏛️ Background & Context
The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 was part of a broader U.S. strategy to isolate Russia following its actions in Ukraine. By granting the President the authority to impose high tariffs, the law aims to deter countries from maintaining energy ties with Russia. India’s historical reliance on Russian oil makes the legislation particularly relevant to its energy security strategy.
👁️ What To Watch Next
India’s next public statement on the sanctions law, any adjustments to its Russian oil import strategy, and the progress of the India‑US bilateral trade agreement. The G20 Trade Ministerial in Milwaukee, where Piyush Goyal will meet US Trade Representative Jamieson Greer, may also yield new developments.
