US Russia sanctions bill threatens India with tariffs of up to 100%

  • US Congress passed a bill authorizing tariffs on major purchasers of Russian oil.
  • Russian crude comprised roughly 30% of India’s FY2026 oil imports, valued at approximately $40.8 billion.
  • India warned September 17-18 that the sanctions could jeopardize ties with the US.

A US sanctions bill targeting Russia and Iran authorizes tariffs of up to 100% on goods from major purchasers of Russian oil, placing India alongside China, Azerbaijan, Hungary and Slovakia in Washington’s crosshairs. Congress passed the Lindsey O. Graham Sanctioning Russia and Iran Act on September 16, after the Senate approved it 86-11 in August and the House passed it 262-159. Russian crude represented roughly 30% of India’s oil imports during FY2026, worth approximately $40.8 billion, with the share rising above 40% at its mid-2026 peak. The legislation also broadens sanctions to Russia’s energy sector, financial institutions and shadow fleet of tankers, while extending measures against Iran. India warned on September 17-18 that the measures could jeopardize ties with the US, its largest trading partner. Earlier US tariffs linked to India’s Russian oil purchases had reached up to 50% on some Indian goods before partial relief in February 2026; the new bill doubles the maximum tariff ceiling and its bipartisan backing could make enforcement waivers more difficult.

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