Decoding the US Sanctions Waiver: A Reprieve for India's Russian Oil Imports, But for How Long?

What exactly is the Lindsey O. Graham Act and why was it waived?

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 is US legislation designed to financially isolate Russia by penalising its major energy customers. Passed with bipartisan support and signed into law on September 18, 2026, its primary tool was the authority granted to the US President to impose punitive tariffs of up to 100% on goods from countries deemed to be significant buyers of Russian oil. India and China were seen as the principal targets. The law, however, contained a crucial flexibility clause: Section 115 allows the President to waive the sanctions if it is determined to be in the “national interests” of the United States.

President Trump invoked this waiver provision in mid-October 2026. While the official rationale was US national interest, the context points to pressing domestic economic and political concerns. With US midterm elections scheduled for November 2026, the administration faced mounting pressure over high domestic fuel prices. According to the Council on Foreign Relations, US diesel prices averaged $6.18 a gallon as of October 12, a sharp increase from $3.48 at the start of the year. This surge contributed to a higher-than-expected rise in the Consumer Price Index, which grew 0.6% in September, bringing the annual inflation rate to 3.7%. By waiving sanctions that could have further constricted global oil supply, the administration sought to mitigate a key cost-of-living issue for American voters.

How critical is Russian oil for India's economy?

Russian crude has become indispensable to India's energy security and economic stability, a shift that accelerated dramatically after February 2022. India is the world's third-largest consumer of crude oil and relies on imports for over 88% of its needs. Before the Ukraine conflict, Russia was a minor supplier; today, it is India's single largest source. According to data from commodity market analytics firm Kpler, India imported 1.9 million barrels per day (bpd) of Russian crude in September 2026, constituting over 35% of the country's total oil imports for that month. This figure had reached an all-time peak of 2.8 million bpd in July 2026.