Union Finance Minister Nirmala Sitharaman on Monday drew a distinction between the US and Europe over pressure on India’s continued purchases of Russian oil, saying there was no equivalent of the “Lindsey Graham Bill” in Europe as New Delhi negotiates trade agreements with European countries.
Her comments came amid questions over whether India’s purchases of Russian crude could affect its strategic autonomy or become an issue during bilateral trade negotiations with European nations.
“In Europe, as much as I understand till today, there is no Lindsey Graham Bill,” Sitharaman said.
She said India’s trade negotiations were taking place in a substantially different global environment, where countries were increasingly factoring in national interests, supply-chain resilience and geopolitical risks while negotiating agreements.
India weighs national interests in changing trade landscape
Sitharaman said trade negotiations had become more complicated because governments were now seeking to protect supply chains from disruptions and establish alternative sources when existing arrangements were affected.
“10 years ago, you wouldn't have had to do this pairing out of details. You would broadly agree on terms and get going with it,” she said.
The finance minister said countries were now required to assess whether supply chains could withstand disruptions and, where existing links had already been affected, identify new partners to keep those supply chains functioning.
She also pointed to the complexity of negotiating with the European Union, where a broader grouping of countries still has to account for individual national interests.
“So, in the current reality, bilateral, or I would still call this bilateral, even within a larger body, the EU comes with a cluster of countries. I think, ultimately, you are tailoring the agreement to keep national interest alive, but to survive in a very challenging global environment where no WTO-related laws have been left to be respected,” she said.
“Everybody's broken the law here and there. And so, you're making it up now,” Sitharaman added.
Her comments came as India and the US continue negotiations on a bilateral trade agreement. On Monday, Sitharaman separately said the India-US trade talks had reached a “plateau”, with further concessions becoming difficult for both sides, although negotiations remain ongoing.
What the Lindsey Graham law allows
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed into law by US President Donald Trump on September 18 after clearing both chambers of Congress. The legislation provides the US president with powers to impose targeted tariffs of up to 100% on goods from countries that fall within specified categories of major purchasers of Russian-origin crude oil or natural gas, or countries facilitating Russian oil sanctions evasion.
The law is narrower than a blanket tariff on every country buying Russian oil. It identifies the five largest importers of Russian-origin crude or natural gas, as well as five countries facilitating sanctions evasion, for potential tariff action. The rates can be adjusted depending on whether a country increases or reduces its purchases.
India and China are among the world's major buyers of Russian crude and could therefore potentially be affected. However, the legislation does not automatically impose a tariff on either country. The authority rests with the US president, subject to the conditions set out in the law.
The legislation also strengthens sanctions against Russia's energy and defence sectors and targets its so-called shadow fleet of tankers used to evade sanctions. It further allows measures against Russian officials, financial institutions and other entities.
The law also raises tariffs on Russian-origin goods to as much as 500% and extends the US Iran Sanctions Act through 2031.
Russian oil remains part of India’s trade calculations
India has consistently maintained that its crude purchases are guided by national interest and energy security. Russian oil became an increasingly important source of India's imports after Western sanctions and the disruption of traditional energy markets following Russia's invasion of Ukraine.
The new US legislation has nevertheless added another layer to India's trade negotiations with Washington, as the potential use of tariffs against major Russian energy buyers could affect the cost and competitiveness of Indian exports to the US. Recent reporting on the India-US negotiations has identified Russian oil, tariffs and broader economic-security issues among the factors complicating the talks.
Sitharaman's distinction between Europe and the US comes as India pursues trade agreements with multiple partners while attempting to preserve flexibility over its energy sourcing.
The finance minister's remarks underline the broader shift in global trade negotiations, where market access is increasingly being discussed alongside supply-chain security, geopolitical considerations and national policy priorities.