The United States has passed the Lindsey O. Graham Sanctioning Russia and Iran Act, 2026, a measure aimed at curbing Russia’s and Iran’s influence through targeted economic sanctions. Central to the act are new tariff duties on Russian oil, a commodity that India imports in significant volumes.
Under the legislation, India’s purchases of Russian crude will be subject to tariff rates that vary depending on the source and quantity of the oil. The act outlines specific conditions that trigger these duties, such as imports that do not meet certain compliance criteria or that exceed a set threshold.
The imposition of these tariffs could push up the cost of imported oil for India, potentially leading to higher fuel prices for consumers and additional pressure on the country’s trade balance. Economists warn that a sustained rise in oil costs could slow industrial activity and affect inflation rates.
To mitigate the impact, the act contains a waiver provision that allows for temporary relief in cases where compliance is challenging or where the tariffs would disproportionately harm a partner economy. The waiver is subject to review by the U.S. Treasury and requires documentation from the affected country.
