Serious escalation: On the U.S., Russia Sanctions Act and India
A new United States law authorising expanded sanctions and tariffs targeting Russia and Iran was signed into law, carrying greater legal weight than earlier executive-order-based measures
The law authorises tariffs of up to 100% on countries that continue to purchase Russian oil and natural gas, with India and China among the largest buyers affected
Unlike a presidential executive order, the law places this authority on a statutory footing, making it harder to reverse through a simple change in administration policy
The law includes conditional exemptions for countries that source less than 15% of their natural gas from Russia and are taking demonstrable steps to reduce dependence further
India's Russian crude oil imports have fluctuated through 2026, with a notable share decline in some months following earlier rounds of US sanctions pressure
The Russia and Iran Sanctions Act, 2026
The Act — formally titled the "Sanctioning Russia and Iran Act of 2026" — was signed into US law on 18 September 2026. It grants the US President statutory authority to impose additional tariffs of up to 100% on the top importing countries of Russian oil and natural gas, moving sanctions policy on Russian energy exports from executive discretion to a congressionally mandated framework.
Key Details
- Signed into law: 18 September 2026
- Authorises tariffs up to 100% on the top five countries importing the most oil or natural gas from Russia
- Exemption available to countries meeting less than 15% of natural gas needs from Russia while taking concrete steps to further reduce dependence
- Unlike an executive order, a statute requires new legislation (or a sunset clause, where applicable) to reverse — raising the stakes for exposed economies
Because the law is statutory rather than an executive order, it fundamentally changes the durability and predictability of US sanctions pressure on Russian energy buyers, which is why the editorial characterises it as a "serious escalation" carrying "more legal weight."
CAATSA (2017) — Precedent for Secondary Sanctions on Russia
The Countering America's Adversaries Through Sanctions Act (CAATSA) was signed into US law on 2 August 2017 and remains the primary precedent for how the US has applied secondary sanctions tied to Russia-related transactions. Under CAATSA, the US President must impose sanctions on entities conducting "significant transactions" with Russia's defence or intelligence sectors, subject to presidential waiver authority.
The 2026 Act represents an escalation beyond CAATSA's transaction-specific sanctions model — instead of penalising a single defence deal, it targets the aggregate volume of energy trade with Russia, a much broader and more consequential exposure for a large crude importer like India.
India's Energy Security and Import Diversification Policy
India imports the vast majority of its crude oil requirements, and diversifying import sources — including discounted Russian crude after 2022 — has been a central plank of its energy security and strategic autonomy approach amid the Russia-Ukraine conflict.
Key Details
- India's crude oil import dependency stands at roughly 88% of domestic consumption
- Russia's share of India's crude imports rose from about 2% before the Russia-Ukraine war (pre-February 2022) to a fluctuating 20-45%+ range through 2026, driven by price discounts
- India's stated position emphasises energy security and the affordability of supply for its consumers as the basis for continued purchases, consistent with its broader "strategic autonomy" foreign policy posture
- Government policy has indicated a gradual recalibration of direct Russian oil imports in response to sanctions pressure, without a full disengagement
The new law directly targets the same energy trade relationship that has been central to India's post-2022 energy security strategy, forcing a policy trade-off between cost savings on crude purchases and exposure to significant US tariff risk.
- Russia and Iran Sanctions Act, 2026: signed into US law on 18 September 2026
- Maximum tariff authorised on top Russian oil/gas importers: up to 100%
- Exemption threshold: less than 15% natural gas dependence on Russia, with demonstrated reduction efforts
- CAATSA precedent: signed 2 August 2017; India's 2018 S-400 deal ($5 billion, 5 units) tested its application via a case-by-case waiver
- India's crude oil import dependency: approximately 88%
- Russia's share of India's crude imports: near 2% before February 2022, rising to a 20-45%+ range through 2026 depending on the month