India May Continue To Buy Russian Oil Despite US Sanctions Bill

India is unlikely to reduce its Russian crude oil purchases in the immediate future despite the US Senate passing a sanctions Bill targeting countries that continue importing Russian energy.

The US Senate approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on Aug 7, raising concerns over possible disruptions to Russian oil flows.

However, analysts believe the impact on India’s crude imports will depend on further legislative steps and how strictly the US administration implements the measures.

Russian crude remains key supply source for India

According to a report by Moneycontrol, Sumit Ritolia, modelling and refining manager at commodity market analytics firm Kpler, said the Senate vote has increased uncertainty around Russian oil supplies but does not alter the near-term outlook for Indian and Chinese purchases.

He said the proposed measures still require additional legislative and administrative approvals, while exemptions and waivers could influence their final impact.

According to Ritolia, policymakers may remain cautious about steps that could affect global crude availability, especially during periods of supply concerns.

The Bill, which initially proposed tariffs of up to 500% on countries importing Russian oil, has been revised to include a secondary tariff mechanism of up to 100%.

It will now move to the US House of Representatives before being sent to President Donald Trump for approval. The House is expected to consider the Senate version after reconvening on Aug 31.

India relies on Russian oil amid global supply risks

Russian crude has become an important part of India’s energy strategy, helping refiners manage risks from disruptions in traditional Middle Eastern supply routes.

India imports around 88% of its crude oil requirements, with Russia accounting for nearly half of the total. Data from Kpler showed Russian crude shipments to India reached about 2.7 million barrels per day during June and July, accounting for more than 50% of the country’s total crude imports.

Analysts said Russian supplies have provided India with flexibility during periods of geopolitical uncertainty, particularly amid tensions in West Asia.