The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 cleared the Senate by an 86-11 vote, giving President Donald Trump broad authority to impose steep duties on goods imported from countries that remain among the five largest purchasers of Russian oil or natural gas. The measure still requires approval by the House of Representatives before reaching the White House.
India faces particular exposure because Russia has become its dominant crude supplier. Russian barrels accounted for more than half of the country’s crude imports in June, when purchases climbed to about 2.6 million barrels per day. Shipments remained close to 2.5 million barrels per day during the first half of July, reflecting the importance of discounted Russian oil to refiners.
China is another major target of the legislation, which is designed to increase the economic cost of continuing large-scale purchases from Moscow. The proposed penalties would not automatically impose a 100% tariff. Instead, they would give Trump discretion to apply duties of up to that level against major energy buyers, allowing the administration to use the threat as leverage in negotiations.
The legislation represents a significant modification of earlier sanctions proposals that envisaged tariffs of as much as 500% on countries buying Russian oil, gas and other energy products. The revised approach narrows the focus to the largest buyers and lowers the maximum secondary tariff while preserving substantial presidential flexibility.
The bill also strengthens sanctions against Russian officials, oligarchs, financial institutions and entities supporting Moscow’s military operations. Measures aimed at Russia’s so-called shadow fleet and other networks used to move energy exports despite Western restrictions are included alongside provisions maintaining economic pressure on Iran.
The legislation was closely associated with Republican Senator Lindsey Graham of South Carolina, who spent months campaigning for tougher measures against Russia before his death on July 11 at the age of 71. Graham had argued that sanctions aimed directly at Moscow were insufficient unless Washington also confronted countries providing Russia with large amounts of energy revenue.
The bill was subsequently named in his honour, giving the measure additional political momentum in a Senate where it had already accumulated strong bipartisan backing. Graham and Democratic Senator Richard Blumenthal had worked together on earlier versions, promoting secondary tariffs as a mechanism for forcing Russia towards negotiations over Ukraine.
The scale of the Senate vote reflects widespread congressional frustration with the persistence of the war, which began with Russia’s full-scale invasion of Ukraine in February 2022 and has entered its fifth year. Supporters believe targeting energy customers could create greater pressure on the Kremlin than sanctions focused mainly on Russian companies and financial institutions.
For New Delhi, however, implementation could complicate an already delicate trade relationship with Washington. Russian crude was a negligible component of the country’s oil basket before the Ukraine war but became increasingly attractive after Western restrictions forced Moscow to sell barrels at discounts.
Refiners including Reliance Industries, Indian Oil Corporation, Bharat Petroleum and Nayara Energy have been prominent buyers. The availability of Russian crude has helped diversify supplies, limit import costs and reduce dependence on traditional Middle Eastern producers, particularly during periods of volatility affecting Gulf shipping routes.
The potential tariff therefore presents policymakers with competing priorities. Cutting Russian purchases rapidly could raise procurement costs and require refiners to obtain greater volumes from the Middle East, Africa, the Americas and other suppliers. Continuing purchases at current levels could leave a large range of exports to the United States vulnerable if Trump activates the new tariff authority.
(IPA Service)
