Story
US and India Discuss New Sanctions Law Targeting Importers of Russian Oil
Summary
Top diplomats from the United States and India have discussed a new U.S. law that could impose steep tariffs on major buyers of Russian energy, a move that directly concerns New Delhi due to its significant crude oil imports from Moscow.
Top U.S. and Indian diplomats met on Wednesday to discuss a new American law that could penalize countries engaging economically with Russia, a development of significant concern for India, a major importer of Russian crude oil.
U.S. Secretary of State Marco Rubio and Indian Foreign Minister S. Jaishankar addressed the potential measures during a meeting in New York, the State Department confirmed in a statement. Following the discussion, Jaishankar stated on X that he "reiterated India’s interests and concerns" regarding the new sanctions bill.
The Sanctions Law Explained
The talks centered on the recently enacted "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026," or SRIA, signed into law last week by President Donald Trump. The legislation is designed to increase economic pressure on Russia following its 2022 invasion of Ukraine.
A key provision of the act requires the U.S. president to impose tariffs of up to 100% within 30 days on all goods from the five largest importers of Russian crude oil or natural gas. The sanctions also target any nation that knowingly made new purchases of Russian energy 30 days after the law was enacted or was found to be helping Russia evade existing sanctions.
AdContext: India's Energy Trade and Past Tensions
India has become one of the largest buyers of Russian crude oil, significantly increasing its purchases of discounted supplies after the war in Ukraine began. New Delhi maintains that affordable energy is critical for its large population and rapidly growing economy.
This issue has been a point of friction in the past. In August 2025, the Trump administration imposed tariffs of as much as 50% on Indian goods over the matter, though those duties were rolled back in February 2026. According to the report, Indian purchases from Russia, after a brief reduction, have since increased, particularly following supply shocks related to the U.S.-Israeli conflict with Iran.
Read next
More on Commodities
Gold Set for Weekly Loss as Oil Surge Boosts Fed Rate Hike Expectations
Gold prices are on track for a weekly decline of more than 2% as elevated energy costs and rising U.S. Treasury yields fuel speculation that the Federal Reserve will need to pursue further interest rate hikes to curb inflation.
Oil Prices Ease on US-Iran Truce Hopes, but Geopolitical Risks Remain
Crude oil prices fell in early trading as signs of a potential U.S.-Iran de-escalation overshadowed recent attacks on Saudi Arabian oil infrastructure. Both Brent and WTI contracts saw modest declines after a volatile week that saw prices hit a one-week high.
Oil Prices Retreat on Reports of U.S.-Iran Talks to Reopen Strait of Hormuz
Crude oil benchmarks fell from recent highs after reports emerged of a potential U.S.-Iran deal to reopen the key shipping lane, though ongoing missile attacks in the Middle East limited losses.
Soybean Futures Slip as Traders Look for Clarity on China Trade
Soybean prices edged lower as a high-profile U.S.-China summit yielded no new trade announcements, while weekly export sales data fell short of expectations. December soymeal futures, however, rallied to a new contract high.