The US Senate on Friday passed a bill that could impose tariffs of up to 100 per cent on India, China and three other countries over their purchases of Russian oil and gas, in a move lawmakers say is aimed at squeezing Moscow’s war financing in Ukraine.
The bill passed with an overwhelming 86-11 vote and has been renamed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, after the Republican senator who authored and championed it before his death on 11 July, following a visit to Kyiv.
Why this matters for India: India is the second-largest buyer of Russian crude after China, and this bill directly threatens Indian exports to the US with tariffs on top of the 50 per cent already in place since August 2025.
What does the sanctions bill actually do?
The legislation gives President Donald Trump the authority to impose tariffs of up to 100 per cent on goods from the five countries that are currently the largest importers of Russian oil and gas: China, India, Azerbaijan, Hungary and Slovakia.
It also extends the expiration date of the Iran Sanctions Act of 1996 which penalises companies investing in Iran’s energy sector to 2031.
Meanwhile, the bill imposes fresh sanctions on Russian President Vladimir Putin, along with Russian oligarchs, senior officials and financial institutions tied to the Kremlin.
The bill does not trigger tariffs automatically. It hands the President discretionary authority to impose them, with implementation depending on the final legislative text and executive decisions once it becomes law.
Why is India in the crosshairs?
India has emerged as one of the world’s largest buyers of discounted Russian crude since the Ukraine war reshaped global energy markets in 2022, a shift that has helped Indian refiners manage costs and secure stable fuel supplies. That reliance deepened further after the conflict in West Asia disrupted shipping through the Strait of Hormuz, pushing Indian refiners to lean more heavily on Russian oil as an alternative.
In August 2025, Washington had already imposed an additional 25 per cent tariff on Indian goods over Russian oil purchases, taking total tariffs on some Indian exports to 50 per cent. Import volumes did not fall in response Indian imports of Russian crude rose sharply through 2026, climbing 34 per cent in June alone to record levels, after Washington briefly eased restrictions through a waiver during the Iran conflict.
New Delhi has consistently maintained that its energy purchases are guided by national interest and energy security, a position it is expected to reiterate if the bill advances further.
What are lawmakers saying about the bill?
Darline Graham, who was appointed to her late brother’s Senate seat, said the bill forces countries “keeping Russia’s economy afloat” to choose between doing business with America or buying cheap Russian energy.
Senator Richard Blumenthal, a Democrat who worked alongside Graham on the bill, said Graham would be “proud of what we’ve done,” adding that the sanctions and tariffs would stop those he called complicit in Russia’s war against Ukraine.
Not all lawmakers are behind the tariff provisions. Democratic Congressmen Gregory Meeks and Don Beyer have warned the bill hands Trump sweeping new tariff powers that he “could weaponise with abandon, as he has repeatedly done in the past.” They argue the bill in its current form would let Trump avoid holding Russia accountable while adding to his broader trade disputes, with the cost ultimately falling on American consumers.
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Earlier in the Senate debate, Republican Senator Rand Paul and Democratic Senator Ron Wyden had separately opposed the 100 per cent tariff provision on strategic grounds, warning it risked straining Washington’s relationship with India without materially changing New Delhi’s energy calculus.
What happens next, and when could tariffs take effect?
The bill now moves to the House of Representatives, which will take it up when it reconvenes on 31 August. It needs House approval before it can go to the President for signature.
Lawmakers have also discussed possible carve-outs: Senator Blumenthal has previously indicated that countries buying only limited volumes of Russian gas could qualify for exemptions under certain conditions. The final shape of any exemptions will determine how directly the bill affects India when it is enacted.