New US sanctions bill complicates Modi’s energy policy decisions

India has spent the last few years quietly becoming one of Russia’s biggest oil customers, snapping up deeply discounted crude while Western nations turned their backs on Moscow. That trade just got a lot more expensive to maintain. The US Congress passed the Lindsey O. Graham Sanctioning Russia and Iran Act on September 16, with the House voting 262-159 after the Senate cleared it 86-11 back in August. The bill authorizes tariffs of up to 100% on goods from major purchasers of Russian oil, a provision that puts India squarely in the crosshairs alongside China, Azerbaijan, Hungary, and Slovakia. A $40.8 billion problem The numbers tell the story of just how deep India’s Russian energy dependence runs. Russian crude accounted for roughly 30% of India’s oil imports across FY2026, a tab worth approximately $40.8 billion. At its peak in mid-2026, that share climbed above 40%. The new legislation doesn’t just target oil purchases directly. It expands sanctions across Russia’s broader energy sector, financial institutions, and its so-called shadow fleet of tankers. It also extends sanctions on Iran, closing another discount crude pipeline that several Asian nations have relied on. India’...