US tariffs against Russian oil buyers pass: What it means for China, India

Congress has approved a measure known as the Lindsey O Graham Sanctioning Russia Act of 2026, which gives the president broad powers to target Russia’s energy exports and the networks that facilitate sanctions avoidance. The bill expands sanctions to include Russian officials, defence firms and the so-called "shadow fleet" of tankers, and authorizes the use of the International Emergency Economic Powers Act (IEEPA) to impose trade penalties. Under the legislation, the president can levy tariffs of up to 100% on exports to the US from the top five purchasers of Russian energy, military equipment or countries that help Moscow evade sanctions; separate tariffs of up to 500% may be applied to Russian goods imported directly into the United States. The US imported $3.8 billion in goods from Russia in 2025. China and India are identified as the major potential targets of the measures, since they are Moscow’s largest energy customers. Think-tank CREA data from August show China accounts for roughly half of Russian crude exports, with India taking about 37%; Turkiye and the European Union each import around 5%. Both Asian buyers face different structural pressures: China receives significant volumes via the Eastern Siberia-Pacific Ocean pipeline, providing an overland supply route, while India is more exposed to maritime routes and has seen fluctuations in its Russian imports. India’s government said it has raised concerns with US interlocutors and warned it will take measures to protect its trade and economic interests, while working with domestic trade and industry bodies on the law’s implications. The International Energy Agency has highlighted India’s growing dependence on crude imports and noted that Indian imports of Russian crude fell to 1.1 million barrels per day in January, the lowest since November 2022 and down from an average of 1.7 million bpd in 2025. China, by contrast, saw Russian crude deliveries surge to a record high that month. Analysts say the ultimate effect on global oil markets will hinge on how forcefully the president applies the new tariff powers. That decision comes amid broader supply constraints: disruptions related to the war with Iran have affected traffic through the Strait of Hormuz, and recent attacks temporarily shut Saudi Arabia’s East-West pipeline, tightening alternative routes and complicating efforts to remove large volumes of Russian crude from the market.