100% US Tariff On Russian Oil Buyers? Senate Advances Russia Sanctions Bill

The legislation, cleared by the Senate on Friday, would give US President Donald Trump the power to impose tariffs of up to 100 per cent on goods from countries that continue purchasing Russian oil and gas. It also proposes sanctions targeting Russian officials, oligarchs, financial institutions and the so-called “shadow fleet” accused of helping Moscow circumvent restrictions on its energy exports.

The bill now heads to the US House of Representatives, although lawmakers are not expected to vote on it until at least early September because of the congressional summer recess.

The proposed measures could have significant implications for India, which has become one of the largest buyers of Russian crude since Western sanctions disrupted Moscow’s traditional energy markets.

Supporters of the legislation argue that Russia’s energy revenues are central to its ability to finance the war in Ukraine. Cutting those revenues, they say, could increase pressure on President Vladimir Putin to negotiate.

The bill would also allow Trump to impose tariffs of as much as 500 per cent on certain Russian imports, including oil and gas, while expanding the US administration’s ability to target countries that continue to purchase Russian energy.

If the legislation becomes law, countries maintaining significant trade in Russian oil could face a difficult choice between continuing those purchases and risking punitive measures from Washington.

The proposed sanctions package would target senior Russian officials, oligarchs and financial institutions, alongside entities connected to the country’s energy trade.

The bill was named after the late Senator Lindsey Graham, who spent more than a year building support for the legislation before his death on July 11.

Democratic Senator Jeanne Shaheen said the measures would intensify pressure on Russia’s energy and financial sectors.

“Vladimir Putin only understands strength, and he only responds to pressure,” Shaheen said, arguing that the legislation could help push Moscow towards negotiations.

“This legislation represents our best opportunity to finally bring Russia’s war machine to its knees and to force Putin to the negotiating table,” she added.

Russia’s embassy in Washington criticised the Senate legislation, arguing that the measures could ultimately harm the US administration. The latest US move comes as Moscow faces mounting pressure from Europe as well.

The European Union recently approved its 21st sanctions package since Russia launched its full-scale invasion of Ukraine in 2022. The measures target financial networks, cryptocurrency firms and additional Russian officials.

The EU has also sought to restrict Russia’s oil revenues, while allowing limited exemptions for shipping companies transporting Russian liquefied natural gas from the Arctic.

Not yet. The Senate vote only advances the legislation; it does not immediately impose a new tariff on India. The bill must still pass the House of Representatives and become law before the proposed powers can be used.

However, if enacted, the legislation could give Washington a significant new lever to pressure India and other countries that continue importing Russian energy. For New Delhi, the issue could become particularly sensitive given its reliance on Russian crude and the broader importance of India-US trade ties.