Trump signs Russia sanctions law, waives 100% duties on oil buyers — India breathes easy

The new law authorises tariffs of up to 100% on the five largest buyers of Russian oil and gas — with China and India the most exposed — but the implementing order suspends the duties for now.

Signed into law after rare bipartisan passage in Congress — 86-11 in the Senate and 262-159 in the House — the legislation is named for the late Republican Senator Lindsey Graham, who spent over a year negotiating it. It sanctions President Vladimir Putin, senior Russian officials and oligarchs, Russian banks and financial institutions, Moscow's energy and defence sectors, and the so-called shadow fleet of tankers used to move Russian oil around Western sanctions. It also extends sanctions on Iran's energy and weapons sectors.

The provision that rattled New Delhi gives the US president authority to impose tariffs of up to 100% on goods from the five largest importers of Russian petroleum or natural gas, subject to conditions laid down in the law, with waiver authority where a waiver is certified to be in the national interest. China is the largest buyer of Russian crude and India among the biggest; the law separately allows tariffs of up to 500% on Russian imports themselves. India, which sourced nearly 30-35% of its crude from Russia through 2025 before imports fell after US sanctions on Rosneft and Lukoil, said this week it 'remains firmly committed to ensuring energy security for its 1.4 billion people'.

In the executive order putting the law into effect, Trump raised duties on the largest five importers of Russian-origin crude and gas by 100% 'if the country knowingly makes new purchases' on or after the deadline — and then immediately suspended those measures under Section 4 of the order, also waiving most of the law's sanctions on foreign persons. The order does not name any country, and the waivers stay in effect until the President or the Secretary of State, in consultation with Treasury and the Trade Representative, determine otherwise. The foreign ministry said India was in touch with the US over the legislation and would take necessary measures to protect its trade and economic interests.