Put oil or lard in Instant Pot*. Using Saute setting, fry bacon and kielbasa until brown. Remove from the pot.
Return kielbasa to the pot and add sauerkraut together with all remaining ingredients.
Close the lid, set valve to Sealing. Cook for 15* minutes on Manual setting, high pressure, natural release. Serve Instant Pot Sauerkraut immediately with a fresh bread or dinner rolls.
*The same dish can be cooked in a regular pot on a stovetop for about 45-60 minutes or until sauerkraut is soft.