The US President has signed the “Lindsey O Graham Sanctioning Russia and Iran Act of 2026″, eliminating legal complexities associated with relying on executive orders. This new law empowers the US President to impose sanctions against not only Russia and Iran but also countries that import more than 15 per cent of Russia’s total global oil exports.
The Act serves as a warning to India, which imports 37 per cent (estimated to reach 45 per cent) and China, which imports 50 per cent of the oil Russia sells globally. These imports are essential to meeting the needs of their respective populations. Despite strong objections from India, China, and Russia following the bill’s passage in the US House of Representatives, the US President has signed the bill into law without hesitation.
US Sanctions: Global Impact
The new law is a significant development in the global energy landscape, with far-reaching implications for countries that rely heavily on Russian oil imports. India, in particular, stands to be affected, as it is one of the top buyers of Russian oil and gas. The country’s refineries are configured for Russian and Middle Eastern crude, making it challenging to process American oil, which is different in quality.
India’s Dilemma
India faces a difficult decision: whether to continue importing cheaper Russian oil or opt for costlier American imports. The US sanctions law exempts countries that purchase less than 15 per cent of Russia‘s total global energy exports and are taking “significant steps” to reduce their imports from Russia. This exemption has raised questions about the legitimacy of the US imposing tariffs on other sovereign nations.
According to trade data, India sourced its crude oil imports as follows: Iraq (19.89 per cent), Russia (17.92 per cent), Saudi Arabia (16.03 per cent), UAE (11.00 per cent), New Zealand (6.95 per cent), Brazil (5.04 per cent), Angola (4.49 per cent), Nigeria (3.93 per cent), the USA (3.51 per cent), and Kuwait (2.93 per cent). However, the situation shifted during April-August 2026 due to major disruptions in shipments from Iraq, and by August 2026, total imports from Russia had risen to approximately 45 per cent.
BRICS Battle
The US sanctions law has sparked a new battle between the US and BRICS nations (Brazil, Russia, India, China, and South Africa). The Act serves as a warning to these countries, which are critical of the US’s attempts to impose its will on international energy markets. The BRICS nations have long been concerned about the US’s efforts to dominate global energy markets, and this latest development has only strengthened their resolve.
In conclusion, the US sanctions law is a significant development in the global energy landscape, with far-reaching implications for countries that rely heavily on Russian oil imports. India, in particular, faces a difficult decision: whether to continue importing cheaper Russian oil or opt for costlier American imports. The BRICS nations have long been concerned about the US’s attempts to impose its will on international energy markets, and this latest development has only strengthened their resolve.
Original Article: US sanctions, Indian oil and the new BRICS battle — Dailypioneer