US President Donald Trump has temporarily waived specified sanctions, restrictions and tariffs under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, offering India and other major buyers of Russian oil and gas relief from the threat of additional US trade penalties. The executive order, signed on 16 October, came just two days before the law’s new tariff provisions were due to take effect.
For India, which relies heavily on imported crude oil and counts Russia among its largest suppliers, the move reduces the immediate risk of fresh trade pressure while supporting energy security amid rising global oil prices and tensions in the Middle East. Trump said the waiver was in the US national interest. However, the decision is reversible, and existing sanctions and other trade measures remain relevant.
Why Trump Changed Course
The waiver follows months of pressure from Washington on countries continuing to purchase Russian energy despite Russia’s war against Ukraine. The Graham Act, signed into law on 18 September 2026, authorised the US administration to impose steep duties on goods from countries buying Russian oil and natural gas, alongside other sanctions and restrictions. Under its provisions, qualifying imports from the five largest buyers of Russian crude oil and natural gas could face an additional tariff of up to 100% if those countries knowingly made new purchases from 18 October.
The legislation also provided for higher duties on Russian goods and certain countries accused of helping Russia evade sanctions. In his executive order, Trump stated, “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act.” He certified to Congress that the decision was in the national interest and submitted a report explaining the basis for the waiver.
What the Waiver Means for India
India is among the countries most directly affected by the policy shift because of its substantial reliance on imported crude oil. Russian supplies became increasingly important after the war in Ukraine began in 2022, when Western restrictions pushed Moscow to offer oil at competitive prices to buyers such as India and China. Continued access to Russian crude gives Indian refiners another source of supply, particularly when disruptions in the Middle East put pressure on global energy markets.
The threat of additional US tariffs had raised concerns that Indian exporters could face higher costs when selling goods in one of their most important overseas markets. The waiver provides temporary breathing space by suspending specified penalties under the Graham Act, potentially helping India maintain its energy sourcing options without facing those additional duties. However, it does not automatically remove other US tariffs or sanctions already in force, nor does it guarantee lower petrol and diesel prices for Indian consumers. The impact will depend on international crude prices, refining costs, currency movements and the government’s pricing decisions.
A Temporary Reprieve, Not a Permanent Policy Shift
Trump’s decision reflects the competing pressures shaping US energy and foreign policy. Washington has sought to restrict the revenue Russia earns from energy exports to put pressure on Moscow over its invasion of Ukraine. At the same time, rising energy costs have increased the importance of securing affordable supplies. The move comes amid heightened Middle East tensions and crude oil prices reported above $110 per barrel, adding to concerns about inflation and fuel costs. The waiver also follows reports of a US arrangement to purchase Russian diesel, drawing criticism from those who argue that easing restrictions could undermine efforts to hold Moscow accountable.
Crucially, the executive order allows the specified waivers to remain in effect until the President or authorised officials determine that further action is appropriate. The US administration will continue monitoring Russian energy purchases and can recommend additional measures. For India, this means the immediate threat of fresh penalties has eased, but uncertainty remains over the future of US trade policy and its implications for bilateral relations.
The Logical Indian’s Perspective
Energy security is closely linked to people’s everyday lives, from household budgets and transport costs to the prices of essential goods. India’s ability to source energy from different countries can help protect consumers from supply disruptions, but long-term security also requires greater investment in renewable energy, efficient public transport and reduced dependence on imported fossil fuels. International trade restrictions should be assessed not only through geopolitical rivalries but also through their consequences for ordinary people, workers and businesses.
At the same time, affordable energy should not come at the cost of overlooking the human suffering caused by war. Dialogue, diplomacy and peaceful efforts to resolve the conflict in Ukraine remain essential, alongside respect for international law and the concerns of affected communities. India’s challenge is to protect its economic interests while maintaining constructive relations with global partners and supporting a more stable international order. Should India prioritise affordable energy and strategic autonomy, or align more closely with international efforts to pressure Russia over the war in Ukraine? Share your views in the comments.
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