US Sanctions Bill Puts India's Russian Oil at Risk — SkimNews
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- U.S. House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act on September 16 by a 262-159 vote after Senate approval on August 7, leaving the bill awaiting President Trump's signature and authorizing tariffs of up to 100% on the top five purchasers of Russian oil and gas.
- India and China are the most exposed buyers under the bill, accounting for 37% and 50% respectively of Russia's total crude exports between December 2022 and August 2026, with Senator Richard Blumenthal publicly telling both to "clean up" their oil-purchasing act.
- India's Ministry of External Affairs softened its response compared to its August 2025 statement, dropping the word "national interest" entirely and focusing instead on "trade and economic interests" while reiterating its commitment to energy security through diversified sourcing.
- Reliance Industries stopped Russian crude imports for exports by November 2025 but resumed purchases in December 2025, and by July 2026 India's Russian crude imports hit a record high for the second consecutive month, with 53% of those volumes transported via "shadow sanctions."
- Indian imports of Russian crude fell roughly 30% below the August 2026 average of around 2.1 mbpd in September 2026, according to preliminary Kpler data, as refiners pulled back ahead of the looming tariff threat.
- Refiners and policymakers face a binding trade-off: experts warn replacing Russian crude will raise import bills and squeeze gross refining margins, while caving to U.S. pressure risks damaging ties with "all-weather friend" Russia—leaving the presidential national-interest waiver as the only viable escape route.
Why it matters: India bought $40.8 billion of Russian crude in FY 2026—30.3% of its total crude imports—so any sanctions-driven cut directly hits the import bills and gross refining margins that experts warn will rise as Russian crude is replaced. The bill awaits Trump's signature while New Delhi negotiates a separate free-trade deal with Washington, making the national-interest waiver a live bargaining chip.
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