The decision by President Donald Trump to lift certain tariffs and ease sanctions on Russia stands to benefit nations that depend heavily on Russian energy supplies, among them India. On 17 October, Trump invoked a waiver provision within the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, suspending the array of penalties, trade restrictions, and duties the law had established.
By setting aside a direct confrontation with nations that continue purchasing Russian energy — among them India, China, and Turkey — the move preserves room for ongoing pressure on Moscow over its military action in Ukraine. The exemption on Russian energy dealings also opens additional policy space for the administration to pursue domestic fuel-price relief.
The order declared the waiver to be in the national interest, and the required congressional notification has since been filed, with the option to reinstate the measures left open. Washington's approach to Russia carries the added dimension of keeping energy costs manageable at home while protecting a broader web of trade ties.
The plan associated with Trump — built around coordinating with Putin to route Russian diesel into global energy markets — sat in tension with the penalty-based framework written into current legislation. Diesel fuel costs in the United States held at above-average levels as the 3 November midterm elections drew near, and expanded supply flowing into international markets would put downward pressure on prices. Enacting that law would have added obstacles to that effort.
The waiver spares India the near-term prospect of renewed tariff friction with Washington tied to its ongoing purchases of Russian crude. Russian crude purchases have grown to form a substantial portion of the country's energy mix, easing refinery operating costs while underpinning domestic fuel supply. Figures drawn from think tank GTRI place Russian crude purchases at $40.8 billion during FY2026, a volume that represented nearly a third — 30.3 percent — of the $134.7 billion spent on all crude imports combined. By July 2026, just over 51 percent of all crude oil flowing into India was being sourced from Russian suppliers.
The Graham Act set a 30-day period during which tariffs of up to 100 percent on goods from the five nations purchasing the largest volumes of Russian crude oil became available as a policy option. With an 18 October expiry looming, the arrangement drew renewed attention to how energy trade and broader commercial ties between India and the United States might be affected. Exporters supplying goods to the American market from India stood to bear the weight of those penalties, stretching the law's reach well beyond the oil industry.
Tariff disputes and broader bilateral trade negotiations between India and the United States form the backdrop against which the decision was taken. The waiver issued by Trump offers India some room to manoeuvre, though it leaves the door open for proceedings to be brought at a later date.
As the top destination for Russian crude exports, China also stands to gain from any rollback of those tariff provisions. Framed around controlling access to the American marketplace, the law set out to give the president a tool for shaping how major buyers of Russian energy conducted their business with Moscow. Turkey, as a buyer of Russian energy, was among the nations whose commercial ties with Moscow faced potential complications under the Graham bill. By lowering the prospect of tariff-based penalties against large-volume purchasers, the waiver eases potential tensions with countries that hold notable trade relationships with the United States. Under the executive order, authority to revisit those measures remains with the administration.
Opposition on Capitol Hill — including from some Republican lawmakers who supported the legislation as a tool for increasing pressure on Putin — remains a possibility in response to the decision. Legislators on both sides of the aisle urged Trump to abandon the arrangement he had negotiated with the Russian leader and adhere to laws already on the books.
Senator Lindsey Graham of South Carolina, who died in office, had put his political weight behind the bill and maintained a consistent record of supporting Ukraine throughout his career. The legislation received Trump's signature the previous month, with the enactment carrying an added dimension as a remembrance of Graham, who died in July. Graham argued that escalating economic pressure on Russia offered the likeliest route to bringing Putin to the negotiating table over a war in Ukraine now entering its fifth year.
