The United States has now unveiled a revised version of its bipartisan Russia sanctions bill that significantly cuts tariffs on countries importing Russian energy. Lowering the maximum tariff from 500% to 100% reduces the threat for the producers of Russian crude oil, particularly China and India.
The bill was introduced by the late Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal and aims to put more economic pressure on Russia over its ongoing war in Ukraine and to give President Donald Trump authority to hit countries that continue buying Russian energy.
Tariff Proposal Softened
Under the amended legislation, President Trump will have the power to impose tariffs of up to 100% (instead of the originally proposed 500%) on the world’s five largest buyers of Russian oil and natural gas.
The bill also provides an exemption for countries that are importing less than 15% of Russia’s natural gas exports as long as they are actively reducing their dependence on Russian supplies. This carve-out could be beneficial to countries like Japan, France, Hungary, and Belgium if they meet the conditions.
India and China, however, are among the biggest importers of Russian crude and could still face tariff risks if the legislation becomes law and is enforced.
Wider Sanctions on Russia
But the bill also includes broad sanctions on key sectors of Russia’s economy. One is restrictions on: Russian government officials
The Central Bank of the Russian Federation. Russia's shadow fleet of oil tankers used to bypass Western sanctions. Major state-backed energy projects, including Yamal LNG and Arctic LNG 1, 2, and 3
The legislation also includes a provision that lets the United States president waive sanctions if doing so is in the national interest.
Why the Bill Was Revised
According to Senate aides, the original proposal was softened after months of negotiations with the White House to ensure broader political support.
The new version will have a better chance of passing Congress while still pressing Moscow to stop its invasion of Ukraine, officials said.
"This is the only product that currently has buy-in from everybody and is likely the only product that is going to move forward," said a Senate aide.
Trump Backs the Measure
President Donald Trump said he felt confident the bill could become law and suggested sanctions targeting Iran and Hezbollah could also be included in the legislation.
Trump called it a tribute to Senator Lindsey Graham:
"This is in honor of Lindsey. This was his thing. He wanted this more than anything."
Senator Richard Blumenthal urged lawmakers to keep the bill focused on Russia instead of making it more general to include additional geopolitical issues.
Potential Impact on India
India has also significantly increased its imports of discounted Russian crude since the Ukraine conflict started, and it is now one of Russia's largest energy customers. Even if the revised bill can reduce the potential tariffs from 500% to 100%, the impact on India-US trade relations could still be significant if Washington tries to apply the new measure.
For now, the bill is still under consideration at the US Congress and no tariffs will be imposed until the bill is passed and signed.
