Indian External Affairs Minister Subrahmanyam Jaishankar has raised New Delhi’s concerns directly with United States Secretary of State Marco Rubio over the newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which gives Washington authority and obligations to impose major trade penalties on countries maintaining specified energy relationships with Russia. The two diplomats discussed the law and wider sanctions policy during a September 23 meeting in New York on the sidelines of the United Nations General Assembly.
The legislation is potentially consequential for India because it requires tariffs of up to 100% on goods from the largest importers of Russian crude oil or natural gas under specified conditions, as well as countries making qualifying new Russian energy purchases or materially assisting sanctions evasion. India remains one of the world’s largest buyers of Russian crude and has argued consistently that affordable energy imports are necessary for a country with a large population and rapidly expanding economy.
What did Marco Rubio and S. Jaishankar discuss about the new US sanctions law?
The US State Department said Rubio and Jaishankar discussed sanctions that could be imposed on states engaging economically with Russia and Iran. The two ministers also discussed Middle Eastern developments and reiterated the broader importance of the United States-India strategic partnership in the Indo-Pacific.
Jaishankar separately said he reiterated India’s interests and concerns regarding the sanctions legislation. Neither side announced an exemption, waiver or immediate agreement changing India’s exposure under the new law.
The meeting therefore served primarily as an early implementation discussion. India wants clarity on how Washington will interpret and apply the statute, while the United States is signalling that energy purchases from Russia and Iran remain central to its sanctions strategy.
How could the Lindsey O. Graham Sanctioning Russia and Iran Act affect Indian exports?
The law provides for tariffs reaching as high as 100% under defined circumstances involving major buyers of Russian energy and countries that continue qualifying purchases after enactment. Reuters reported that India’s position as a major Russian crude importer places it directly within the group of countries watching implementation closely.
A 100% tariff does not necessarily mean every Indian product will automatically face that rate immediately. Application depends on statutory criteria, presidential implementation and any exemptions or waivers allowed under the legislation.
The commercial stakes are nevertheless significant because the United States is a major destination for Indian exports spanning pharmaceuticals, engineering goods, electronics, textiles, jewellery and services-linked sectors. A broad tariff shock would therefore extend well beyond the oil industry that triggered the dispute.
Why does India continue buying Russian oil despite US pressure?
India says energy security and affordability are the primary considerations. After Russia’s invasion of Ukraine, discounted Russian crude became commercially attractive to Indian refiners and helped diversify supplies beyond traditional Middle Eastern producers.
The Middle East war strengthened that argument because disruption to Gulf energy flows made Russian barrels even more important at several points in 2026. India has recently reduced Russian purchases as Middle Eastern supply improved, but Russia remains a major supplier.
New Delhi’s position is that purchasing commercially available energy for domestic consumption should be understood in the context of global supply stability and the needs of a developing economy. Washington’s position is that continued Russian energy revenue reduces the effectiveness of economic pressure intended to constrain Moscow’s ability to sustain the Ukraine war.
Has India previously faced US tariffs because of Russian oil purchases?
Yes. Reuters noted that Trump imposed tariffs reaching 50% on some Indian goods in August 2025, with Russian oil purchases forming part of the administration’s rationale. Those duties were later reduced after Trump cited what he described as an Indian commitment to reduce Russian purchases.
India briefly reduced Russian imports in early 2026 before increasing them again as the Iran war disrupted alternative supplies. That history helps explain why New Delhi is seeking clarity now rather than waiting until new penalties are imposed.
The relationship is complicated because the United States and India simultaneously cooperate closely on defence, technology, supply chains and Indo-Pacific security. Energy sanctions therefore intersect with a strategic partnership both governments have spent years expanding.
Could Washington exempt India because of its strategic importance?
The legislation and implementation framework will determine the scope available for presidential discretion, waivers and exemptions. No India-specific exemption was announced following the Rubio-Jaishankar meeting.
Strategic considerations could influence how Washington implements penalties, but India cannot assume that security cooperation automatically neutralises trade sanctions. The law was passed specifically to increase economic pressure on Russia by targeting third countries sustaining energy revenues.
Conversely, the United States must weigh whether severe tariffs on India would undermine other strategic objectives, including defence cooperation, supply-chain diversification and efforts to balance China’s influence across the Indo-Pacific.
Why does the Iran portion of the sanctions law also matter for India?
India has historically maintained economic and strategic relations with Iran, including interests related to energy and the Chabahar port corridor. Middle Eastern instability makes those relationships economically relevant even as US sanctions significantly restrict conventional commercial engagement.
The State Department explicitly said Rubio and Jaishankar discussed potential measures involving economic relationships with both Russia and Iran. That means India’s exposure is not limited solely to Russian crude.
New Delhi must therefore manage two overlapping constraints: securing affordable energy and regional connectivity while maintaining access to the US market and financial system.
Could the sanctions dispute derail broader India-US economic relations?
It creates a meaningful risk but does not automatically overturn the broader partnership. The two countries have extensive cooperation in semiconductors, defence, critical minerals, technology and Indo-Pacific strategy, giving both governments incentives to contain disagreements.
Energy policy is nevertheless unusually difficult because the economic costs are immediate. India faces inflation and current-account risks when oil prices rise, while the United States wants sanctions to impose real costs on Russian energy revenue.
A durable compromise would likely require a structure allowing India to maintain adequate energy supplies while reducing transactions Washington views as undermining sanctions. Whether such an arrangement is available under the new law remains a key unanswered question.
What are the key takeaways from the Rubio-Jaishankar sanctions talks?
India has now formally raised its concerns at the highest diplomatic level after Trump signed the legislation into law. The United States has not announced an exemption, meaning Indian companies and exporters must watch the implementation process closely.
The dispute is particularly consequential because Russian oil purchases have already declined from their earlier 2026 peak as Middle Eastern supplies improve. That changing import mix could affect India’s ultimate exposure depending on how Washington measures purchases and applies the law.
The broader relationship therefore faces a test of compartmentalisation. Washington and New Delhi must decide whether a serious disagreement over Russian energy can be managed without allowing it to spill into defence, technology and strategic cooperation.
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