Full Breakdown
India Weighs Russian Oil Purchases Amid New U.S. Sanctions Law
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Core Event – U.S. SRIA Law Targets Top Buyers of Russian Energy
On September 18, 2026, the United States enacted the *Lindsey O. Graham Sanctioning Russia and Iran Act* (SRIA). The legislation authorises tariffs of up to 100 percent on goods from the five largest importers of Russian oil and natural gas. India, a major buyer of Russian crude, could face indirect costs to its U.S. exports rather than a direct surcharge on the oil itself.
Background & Context
India imports roughly 88 percent of its crude oil, ranking third worldwide. After Western buyers retreated following the Ukraine war, Russian Urals crude rose to about 2.1 million barrels per day in August 2026—about 45 percent of India’s total import mix, down from just over 50 percent the month before.
Industry estimates attribute $12 billion in savings to Russian purchases between April 2022 and June 2025:
- FY 2023: $4.9 billion
- FY 2024: $5.4 billion
- FY 2025: $1.5 billion
- Apr-Jun 2025: $0.84 billion
Discounts fell from roughly $13 per barrel in FY 2023 to $2.30 per barrel in FY 2025, and by late July 2026 the Urals-to-Brent discount had narrowed to $1-2 per barrel.
Data & Statistics
| Metric | Figure |
|---|---|
| Russian crude delivered to India (Aug 2026) | 2.1 million bpd (? 45 % of imports) |
| Cumulative savings (Apr 2022-Jun 2025) | $12 billion |
| FY 2023 discount | $13 /bbl |
| FY 2025 discount | $2.30 /bbl |
| Late-July 2026 Urals-Brent discount | $1-2 /bbl |
| India’s U.S. export sales (FY 2026) | $86.5 billion |
| Hypothetical 10 % export decline impact | $8.7 billion loss |
Official Statements & Responses
- Vikram Misri, Foreign Secretary, told a bipartisan U.S. committee that India is reviewing the SRIA’s implications.
- Randhir Jaiswal, MEA spokesperson, said discussions covered “the entire gamut of India-US relations, including the newly enacted SRIA legislation and the future trajectory of the relationship.”
- Jamieson Greer, U.S. Trade Representative, remarked, “I don’t think there is something imminent,” when asked about a pending trade deal.
Conflicting Reports & Gaps
- The SRIA allows up to 100 percent tariffs on goods from top buyers, but it does not automatically impose a tariff on Indian exports; actual application will depend on executive decisions, product coverage, and possible waivers.
- Discount estimates vary across sources, with some reporting a $13 per-barrel advantage in FY 2023 and others noting $2.30 per barrel in FY 2025. Precise margins remain uncertain due to fluctuating freight costs and evolving sanctions enforcement.
Verbatim Quotes
- “I don't think there is something imminent,” — Jamieson Greer, U.S. Trade Representative
- “Discussions covered the entire gamut of India-US relations, including the recently enacted SRIA legislation and the future trajectory of the relationship.” — Randhir Jaiswal, MEA spokesperson
What’s Next
India is weighing the trade-off between continued Russian oil discounts and potential losses from U.S. export tariffs. The government is exploring U.S. waiver requests and diversification of crude sources across the Middle East, the Americas, and Africa. The timeline for SRIA’s implementation and any associated waivers remains unspecified, leaving the balance of savings versus export-related costs an open question for Indian policymakers.