US waives sanctions on Russian energy revenues, providing relief for India’s oil imports

International Relations & Energy Security · 18 October 2026 · Based on Indian Express (original report)

Worth reading — 1 past UPSC question on this theme (Prelims GS-1 2020); also both a Prelims fact and a Mains debate.

2-minute summary

US President Donald Trump has issued an executive order waiving key sanctions and tariff provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The legislation had authorized tariffs of up to 100% on major buyers of Russian energy to curb Moscow's revenue amid the Ukraine war. The presidential waiver provides vital, albeit temporary, relief for India, which relies on imports for over 88% of its crude oil needs. Russia has emerged as India's largest oil supplier, delivering 1.9 million barrels per day (bpd) in September 2026, representing over 35% of India's total monthly imports, down from a peak of 2.8 million bpd in July 2026. The waiver mitigates immediate threats to Indian refiners and export sectors while preserving flexibility during ongoing bilateral trade negotiations. However, the White House retain authority to revoke the waiver and monitor purchases, underscoring that Washington continues to hold strategic leverage over New Delhi's energy sourcing.

Why it's in the news

The US administration issued an executive order pausing 100% tariff provisions on major importers of Russian energy under the Lindsey O. Graham Act of 2026. This move temporarily removes the threat of trade penalties on Indian exports and secures India's crude oil supply chain.

Facts to remember

  • India relies on imports to satisfy over 88% of its total crude oil requirements.
  • In September 2026, India imported 1.9 million barrels per day (bpd) of crude oil from Russia.
  • Russian crude oil accounted for over 35% of India's total monthly oil imports in September 2026.
  • India's crude oil imports from Russia reached an all-time record high of 2.8 million barrels per day in July 2026.
  • The US Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 authorized punitive tariffs of up to 100% on major buyers of Russian energy.
  • Historically, approximately 40% of India's crude oil imports passed through the Strait of Hormuz prior to recent supply choke point constraints.

Background and context

Following the outbreak of the Russia-Ukraine war in February 2022, Western nations imposed sweeping sanctions and price caps on Russian crude oil. Moscow responded by offering substantial price discounts to non-aligned nations. Indian refiners, whose infrastructure is well-adapted to medium-sour Russian crude, rapidly expanded purchases, elevating Russia from a peripheral supplier to India's top crude source, displacing traditional West Asian suppliers. However, this shift exposed India to secondary sanctions risks from the United States. Unilateral measures, such as the Lindsey O. Graham Act of 2026, seek to penalize third-party nations purchasing Russian energy. While executive waivers offer short-term relief driven by global market stabilization and US domestic price considerations, they highlight India's continuous challenge in maintaining strategic autonomy while mitigating supply chain chokepoints and currency risks.

Constitutional provisions

  • Article 73 — Extends the executive power of the Union to matters with respect to which Parliament has power to make laws, including foreign affairs and trade agreements.

Committees and reports

  • High-Level Committee on Reduction of Import Dependence in Crude Oil — Recommended a five-pronged strategy including increasing domestic production, demand substitution, conservation, refinery improvements, and alternative fuels.

Government schemes

  • Strategic Petroleum Reserve (SPR) Programme — Managed by Indian Strategic Petroleum Reserves Limited (ISPRL) to maintain crude oil stockpiles to cushion against global supply shocks and geopolitical disruptions.

International organisations

  • International Energy Agency (IEA) — An autonomous intergovernmental organization that monitors global energy markets, provides policy recommendations, and maintains emergency oil stock response mechanisms; India is an Associate Member.

Previous UPSC questions on this theme

  • Prelims GS-1 2020 — With reference to the international trade of India at present, which of the following statements is/are correct ? 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below : (a) 1 and 2 only (b) 2 and 4 only (c) 3 only (d) 1, 3 and 4 only

Mains practice: In the light of evolving geopolitical conflicts and unilateral secondary sanctions, evaluate the challenges to India's energy security and discuss the strategies required to achieve long-term resilience.

India relies on imports for over 88% of its crude oil requirements, making national economic stability deeply vulnerable to international supply shocks. The recent US executive waiver under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 highlights the ongoing pressure on India's energy sourcing, where Russian crude accounted for 1.9 million barrels per day (over 35% of monthly imports) in September 2026.

Challenges to India's Energy Security:

• Secondary Sanctions and Diplomatic Friction: Unilateral trade laws imposing up to 100% tariffs create geopolitical dilemmas, forcing India to balance strategic partnerships with Western allies against its domestic fuel affordability.

• Macroeconomic Vulnerability: High crude import dependency amplifies susceptibility to Current Account Deficit (CAD) widening and imported inflation. Discounted Russian crude served as an essential fiscal buffer during global energy surges.

• Maritime Chokepoints and Logistics Risks: Nearly 40% of India's traditional imports rely on the Strait of Hormuz. Geopolitical instability in West Asia constrains shipping lanes, raising freight and insurance costs for refiners.

• Technical Adaptation Constraints: Indian refineries are specifically calibrated for medium-sour crude grades, making sudden shifts to alternative global crude streams technically complex and costly.

Way Forward:

• Expanding Strategic Reserves: Accelerate Phase II of the Indian Strategic Petroleum Reserves Limited (ISPRL) project at Chandikhol and Padur to expand national emergency storage capacity beyond the existing reserves.

• Portfolio Diversification: Secure long-term supply agreements across non-traditional regions including South America and Africa to reduce concentration risk.

• Accelerating Clean Energy Transition: Enforce targets under the National Green Hydrogen Mission and achieve 20% ethanol blending in petrol to structurally lower hydrocarbon demand.

Conclusion:

Securing energy resilience while preserving strategic autonomy aligns with India's broader vision of sustainable growth and the constitutional objective under Article 51 of promoting international peace and equitable economic relations.

Prelims practice questions

Q1. With reference to India's energy profile and crude oil imports, consider the following statements: 1. India relies on imports to satisfy over 88% of its total domestic crude oil requirements. 2. The Lindsey O. Graham Act of 2026 automatically exempts all Asian nations from tariffs on Russian crude purchases. 3. Prior to recent disruptions, over 80% of India's crude oil imports passed through the Malacca Strait. How many of the above statements are correct?

  1. Only one
  2. Only two
  3. All three
  4. None

Answer: A. Statement 1 is correct: India depends on crude oil imports to meet over 88% of its crude requirements. Statement 2 is incorrect: The exemption granted under the Lindsey O. Graham Act of 2026 is based on a discretionary presidential executive order citing US national interests, not an automatic statutory exemption for Asian nations. Statement 3 is incorrect: Historically, about 40% of India's crude imports passed through the Strait of Hormuz, not over 80% through the Malacca Strait.

Q2. Given below are two statements: Statement-I: A sustained discount on imported crude oil significantly cushions India's macroeconomic balance and fiscal health. Statement-II: India imports over 88% of its crude oil requirements, making its domestic inflation and current account deficit highly sensitive to global energy prices. Which one of the following is correct in respect of the above statements?

  1. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  2. Both Statement-I and Statement-II are correct but Statement-II does not explain Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct

Answer: A. Both statements are correct. Statement-II directly explains Statement-I because India's high import dependency (>88%) means international crude prices directly dictate the import bill, inflation levels, and Current Account Deficit; discounted crude directly mitigates these macroeconomic pressures.

Q3. Which strategic maritime waterway traditionally handled approximately 40% of India's crude oil imports prior to recent West Asian supply disruptions?

  1. The Strait of Malacca connecting Indian and Pacific Oceans
  2. The Mozambique Channel located between Madagascar and Africa
  3. The Bab-el-Mandeb Strait connecting Red Sea to Gulf of Aden
  4. The Strait of Hormuz between Persian Gulf and Gulf of Oman

Answer: D. About 40% of India's crude oil imports traditionally moved through the Strait of Hormuz, connecting the Persian Gulf to the Gulf of Oman, making it a critical maritime chokepoint for India's energy supply.

Revision flashcards

  • What percentage of India's total crude oil requirement is met through imports? Over 88% of India's crude oil requirements are met through imports.
  • Which entity manages India's strategic crude oil stockpiles, and under which ministry does it operate? Indian Strategic Petroleum Reserves Limited (ISPRL), operating under the Ministry of Petroleum and Natural Gas.
  • In September 2026, what volume of Russian crude oil did India import, and what share of total oil imports did it constitute? India imported 1.9 million barrels per day, accounting for over 35% of its total crude oil imports in September 2026.
  • What was the peak volume of Russian crude oil imports recorded by India in July 2026? Imports reached an all-time high of 2.8 million barrels per day in July 2026.
  • Why does a US executive waiver on energy sanctions provide tactical relief rather than structural security for India? Executive waivers are discretionary and subject to active monitoring, leaving trade flexibility intact temporarily while preserving US strategic leverage for future policy shifts.

All stories for 18 October 2026 · ← 17 October 2026