How the U.S. Sanctioning Act, 2026 Impacts India's Economy and Energy Security

Gist U.S. President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act, 2026, empowering the U.S. to levy up to 100% tariffs on exports from countries that are top importers of Russian oil. This directly threatens India, which currently sources over half of its crude oil from Russia, forcing New Delhi into a difficult choice between preserving its crucial export market in the U.S. or maintaining access to discounted Russian energy. For civil services aspirants, this development is a textbook case study in the intersection of geopolitics, energy security, and international trade, highlighting how extraterritorial sanctions strain a nation's strategic autonomy. Background The Lindsey O. Graham Sanctioning Russia and Iran Act, 2026 aims to choke funding for Russia’s war in Ukraine by sanctioning its leadership and major energy buyers, while also extending similar sanctions on Iran until 2031 . Under U.S. trade law, the President and the United States Trade Representative USTR wield broad powers to restrict imports or levy duties to protect domestic interests. Two key instruments frequently used are Section 301 of the Trade…