US Senate passes Russia sanctions Bill; India faces potential 100 pc tariffs

The US Senate has overwhelmingly passed a sweeping Russia sanctions Bill that could expose India and other major buyers of Russian oil and gas to tariffs of up to 100 per cent, in one of Washington’s strongest attempts yet to squeeze countries accused of helping finance Moscow’s war in Ukraine.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was approved by an 86-11 vote on Friday, 7 August. The bipartisan measure now moves to the House of Representatives, which is expected to consider it after returning from its summer recess on 31 August.

If enacted, the Bill would empower President Donald Trump to impose tariffs of up to 100 per cent on goods from countries that are among the largest importers of Russian crude oil or gas and are deemed to be enabling Russia to evade sanctions.

India is among the major Russian energy buyers that could be affected by the measure. The legislation limits the tariff provision to the five largest importers of Russian crude oil or gas, as well as the top five countries involved in helping Russia evade energy sanctions.

The measure comes as Washington seeks to cut off revenues that help sustain Russia’s war in Ukraine. It also includes sanctions targeting Russian officials, oligarchs, financial institutions and the country’s so-called shadow fleet of vessels used to circumvent sanctions.

The Bill also extends until 2031 the Iran Sanctions Act of 1996, which penalises companies that invest in Iran’s energy sector.

The legislation was championed by Republican senator Lindsey Graham and Democratic senator Richard Blumenthal. Graham, one of Ukraine’s most prominent supporters in Congress, died on 11 July, shortly after reaching an agreement with the Trump administration on moving the sanctions legislation forward.

After Graham’s death, his sister Darline Graham was appointed to fill his Senate seat and participated in the push to secure passage of the legislation. “This Bill forces those primary countries keeping Russia’s economy afloat to make a simple yet critical choice — a choice between doing business with America or buying cheap Russian energy,” she said.

Blumenthal said Graham would be “proud of what we’ve done”.

“These sledgehammer sanctions and tariffs will stop all who are complicit in this murderous, criminal war of aggression against brave free people,” he said.

The Senate vote was not without opposition. Some Democrats have warned that the legislation would hand Trump sweeping new tariff powers at a time when tariffs have become a central instrument of his trade policy.

Democratic representatives Gregory Meeks and Don Beyer criticised the measure for creating “sweeping new tariff authorities that the president could weaponise with abandon, as he has repeatedly done in the past”.

“We welcome our Senate colleagues’ urgent effort to support Ukraine and punish Russia for its continued illegal war, but this bill would not achieve those goals. Instead, it would allow President Trump to dodge holding Russia accountable and impose yet more tariffs in his destructive trade wars, leaving Americans to foot the bill,” they said.

The Senate rejected an amendment that sought to remove the tariff provisions. Republican senator Rand Paul, who voted against the Bill, argued that tariffs ultimately amounted to taxes on American consumers.

The Bill’s passage nevertheless marked a significant bipartisan show of support for tougher economic measures against Moscow. Its fate now rests with the House, where lawmakers have already raised concerns about the breadth of the tariff powers being handed to Trump.

If approved by the House and signed into law, the measure would give the president substantial discretion over whether and when to impose the tariffs, potentially putting countries such as India under renewed pressure over their continued purchases of Russian energy.

With AP/PTI inputs