Russian Oil: What US Sanctions Bill Means For India’s Energy Security

A US bill giving President Donald Trump the power to impose tariffs of up to 100% on major buyers of Russian oil has cleared the House of Representatives, putting India’s energy security and its purchases from Moscow under fresh pressure.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was passed by the House 262-159 on Wednesday after clearing the Senate earlier. It now goes to Trump, who would have the authority to impose steep tariffs on countries continuing to buy Russian energy.

India responded on Thursday by stressing that its priority remains securing energy for its 1.4 billion people.

“India remains firmly committed to ensuring energy security for its 1.4 billion people,” the government said, adding that the possible implications for bilateral ties and global energy markets had been conveyed to US interlocutors.

Why Russian Oil Matters To India

Russia remains India’s largest crude supplier despite a decline in purchases in August.

India imported about 2.08 million barrels per day of Russian crude in August, accounting for roughly 45% of its total crude imports, according to Kpler data. That was down from about 2.82 million barrels per day in July, when Russia accounted for nearly 56% of India's crude basket.

The decline has been attributed to tighter Russian supplies, stronger Chinese competition for Russian crude and higher shipping risks. India has also increased purchases from alternative suppliers, including Venezuela.

Russian crude became particularly important for Indian refiners after Moscow offered substantial discounts following Western sanctions over the Ukraine war. Those discounts have narrowed as supplies have tightened.

India is the world's third-largest crude consumer and imports most of the oil it processes. Any abrupt reduction in Russian supplies could therefore increase the cost of securing alternative barrels.

Tariff Threat Comes As Oil Market Faces More Risks

The US legislation comes at a particularly sensitive time for global energy markets.

India has already been diversifying its crude basket, buying oil from suppliers including Saudi Arabia, Nigeria, Venezuela and the US. But replacing Russian barrels entirely could involve higher freight and procurement costs, depending on the source and market conditions.

The threat also extends beyond India. China, the world's largest importer of crude, is another major buyer of Russian oil and could face the same tariff mechanism under the legislation. US Senator Richard Blumenthal issued a direct warning after the House vote, saying: “To China and India: you better clean up your act. Buy your oil and gas somewhere else.”

The legislation therefore creates a question for Washington as well as New Delhi: how aggressively will the Trump administration use the new tariff authority, and what impact would that have on global oil prices?

India has argued that its Russian oil purchases are driven by energy-security requirements. The government has also indicated that the potential impact of US measures on both bilateral relations and international energy markets has been raised with Washington.

For now, the immediate issue is not a 100% tariff already imposed on Indian goods, but whether Trump will sign the legislation and subsequently use the authority it provides. The outcome could determine how quickly Indian refiners further diversify away from Russian crude—and how much more that shift costs.