Formally called the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026”, it aims to cut off Russia’s energy sales revenues funding the war against Ukraine. It also expands sanctions against Iran. The Act will be considered by the House of Representatives when it reconvenes on 31 August. 

India Relies On Imported Crude Oil

India, the world’s third-largest oil importer, relies on crude imports to meet around 90% of domestic demand. The share of imported crude in the import bill is as high as 25%. 

Historically, India imported around 65% of its crude from West Asia. That changed dramatically after Russia invaded Ukraine in February 2022. 

As Western sanctions against Russia piled up, Moscow started selling discounted oil. From about 2%, Russia’s share of imported crude is now more than 50%, with India importing 2.8 million barrels per day (bpd) in July, the highest average monthly volume ever, according to vessel-tracking data by Kpler.

Data from the Centre for Research on Energy and Clean Air (CREA) shows that India has imported around $168 billion worth of crude oil from Russia since the Ukraine War started.

US Act Favours European Allies 

This is not the first time the US has targeted India. 

US President Donald Trump slapped an additional 25% penalty tariff on Indian imports of Russian oil in August last year on top of the 25% reciprocal tariff. After both nations announced an interim trade framework in February, he reduced the reciprocal tariff to 18% and removed the 25% oil tariff. 

India got relief within a week of the Iran War, when the US issued an emergency 30-day waiver to permit the transit of Russian crude and petroleum products already at sea. The waiver was extended in April and May before it expired in June, when the US and Iran signed the memorandum of understanding (MoU).

Now, India again stands exposed to 100% US tariffs — and so do China and other top importers of Russian oil and gas. 

But not all, especially European Union (EU) members. The Act favours EU members.

First, the president can waive sanctions or restrictions if the waiver is “in the national interests of the United States” by formally certifying to Congress. 

For example, Trump can certify that waiving 100% tariffs against China or an EU member is in the “national interests” of the US.  

Though this provision also applies to India, considering the Trump administration’s bias and hostility, New Delhi shouldn’t expect much.  

Second, the Act exempts countries taking “significant steps” to reduce reliance on Russian natural gas and whose total natural gas imports are less than 15% of Russia’s total annual natural gas exports. 

This biased provision was specifically designed to favour America’s allies, such as France, Japan, Spain, and Belgium, who are below the 15% threshold.

US Allies In EU Top Importers Of Russian Gas

The EU has been the biggest buyer of Russian LNG and pipeline gas in the last six months despite adopting the 21st package of sanctions against Russia in July. 

Since January, the EU has purchased 49% of Russia’s total LNG exports and 32-35% of pipeline gas exports, per CREA data.

In January, the five largest EU importers of Russian fossil fuels — France, Hungary, Belgium, Slovakia, and Spain — paid Russia a combined €915 million, with natural gas, unsanctioned by the bloc, accounting for 85% of these imports.

France imported Russian LNG worth €315 million, a massive 57% month-on-month increase. Hungary purchased €144 million of pipeline gas and €55 million of crude oil. Belgium imported €171 million of LNG, Spain €114 million, and Slovakia €34 million.

In May, despite Russia’s LNG export revenues and volumes decreasing by 6% and 3% month-on-month, and pipeline gas export revenues and volumes down by 9% and 4%, respectively, the EU accounted for 49% of Russia’s total LNG exports and 32% of its pipeline gas exports. 

Hungary, Slovakia, Spain, France and Belgium paid Russia a combined €2 billion, with the natural gas share at 66%. 

In June, Russia’s LNG and pipeline gas export revenues increased by 9% and 11%, respectively. The EU accounted for 49% of LNG exports and 32% of pipeline gas exports.

Hungary, France, Spain, Belgium and Slovakia imported €1.7 billion of Russian fossil fuels, with natural gas accounting for 75% of the value. 

Hungary imported €591 million of Russian fossil fuels, France €349 million of LNG (highest rise of 34% month on month), Spain €258 million of LNG, Belgium €254 million, and Slovakia €208 million of fossil fuels.

All top five EU importers of Russian fossil fuels, especially LNG and pipeline gas, are NATO members. 

On one hand, NATO continues to arm Ukraine against Russia and slap sanctions; on the other, these member states have imported Russian fossil fuels, especially natural gas, worth billions.   

West Buys Products Refined From Russian Crude

Countries that have sanctioned Russia also import oil products refined from Russian crude from India, Turkey, Brunei, and Georgia. Products refined from crude oil include gasoline, diesel, jet fuel, heating oil, LPG, among others.

In January, five refineries in India, Turkey, and Brunei that use Russian crude exported €781 million of refined products to the EU, US, UK, and Australia. 

The US imported €118 million of refined products originating mainly in the Jamnagar refinery and the Tupras-owned refineries in Turkey.

In June, eight shipments from Turkey, India, and Georgia were unloaded at EU ports. Oil products worth €814 million were exported to the EU, Australia and the US.

EU Eases Sanctions

The European Council claimed that the “harsh” 21st sanctions package against Russia contains the “largest batch of individual listings of the last four years, totalling 218, of which 48 are individuals and 170 entities”. Besides, the assets of 94 banks and major financial institutions were frozen. 

Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy, said, “We’re hitting over a hundred banks and crypto operators, 40 plus vessels in Russia’s shadow fleet, and several oil refineries in Russia and Belarus.”

Earlier this year, the EU banned Russian LNG imports from January 1, 2027, and also prohibited EU companies from transporting, purchasing, and selling it to customers outside the bloc. 

However, the EU eased those sanctions in the 21st round by allowing European companies that signed contracts before the war to continue transporting and purchasing Russian LNG to buyers outside the bloc till July 25, 2027. 

Moreover, the Council can renew the exemption every year. The EU was also smart enough to cap transport and purchase volumes at 2025 levels, when the highest number of Russian LNG shipments entered the bloc.

(The writer is a columnist with more than two decades of experience in journalism. Views are personal.)