US Wants to Be Major Energy Supplier to India as New Russia Sanctions Law Looms

The United States is positioning itself to become a major supplier of energy to India, a senior State Department official has said, even as a newly signed American law authorises steep tariffs on countries that buy Russian oil and gas.

President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law last week. The legislation permits him to impose tariffs of up to 100 per cent on countries purchasing Russian oil and gas — a provision that could apply to both China and India. It is named after the late Senator Lindsey Graham, who had earlier proposed sanctions of up to 500 per cent on such purchases.

Responding to a question on the law and India's stated concerns over its "potential implications" for the bilateral relationship, the official acknowledged that the US Congress had taken a firm public stance. "You had members of Congress calling out India in particular, so of course India has to respond. We understand that. They have a domestic constituency, as do we," the official said, adding that there were "no hard feelings" over such exchanges.

The official described the law as a new instrument in the President's hands rather than an immediate measure. "That doesn't necessarily mean he deploys it tomorrow, but he has the opportunity to," the official said, noting that Trump's stated focus has been on ending the war — a commitment he made during his campaign.

"We're looking for our friends, especially like India, to help support that effort. But I think you'll have to stay tuned on how the bill gets implemented. But there is a broad national security waiver, so you can imagine there's a scenario, and the President uses that as well," the official said.

On alternative supply options, the official said Venezuelan and Iranian sources had been unavailable for a long time, leaving choices "very limited". The official characterised the recent US operation in Venezuela as successful and said it could improve access to that market for countries such as India. He added that India had previously operated refineries in Venezuela, though restoring them would be complicated because of the damage the Nicolás Maduro government had caused to the industry.

"We are looking to also become a huge source of India's energy needs. We're increasing our hydrocarbon exports," the official said, noting that the US is now the world's largest exporter of LPG and the second-largest exporter of LNG.

Energy has featured regularly in contacts between External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio, the official said, and those conversations would continue. "The demands are great, and the needs for oil are there. We are looking for alternatives," the official said.

India, the world's third-largest consumer of crude oil, imports more than 80 per cent of its requirements, and Russia has emerged as its largest supplier of crude in recent years. Successive Indian governments have said that energy purchases are driven by commercial considerations and the need to secure affordable supplies for consumers.

The official also noted that India's search for diversified energy sources predates the current geopolitical situation. "Even before the war, India had been looking to diversify when it came to energy for a long time. It's not a new concept. We just need to expedite it faster," the official said.

How the new law will be applied in practice, and whether the national security waiver is used for partners such as India, remains to be seen. Officials on both sides have indicated that discussions on energy cooperation will continue.