Washington (Rajeev Sharma): A bipartisan group of US senators has backed legislation that could significantly raise the economic cost for countries continuing to buy Russian energy, with India and China potentially facing tariffs of up to 100 per cent on their exports to the American market.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was approved by the Senate in an 86-11 vote, marking a major step forward for legislation designed to tighten pressure on Moscow and its key energy customers.
The measure would give US President Donald Trump the authority to impose a 100 per cent tariff on goods from countries among the five largest purchasers of Russian oil and gas.
Besides India and China, Azerbaijan, Hungary and Slovakia have been identified under the provision as major buyers of Russian energy.
Russia’s energy trade at the centre
The proposed legislation seeks to target Russia’s energy revenues, which US lawmakers supporting the bill argue continue to provide financial support for Moscow amid the war in Ukraine.
The measure also contains provisions for sanctions against senior Russian officials, wealthy individuals and financial institutions, including measures directed at Russian President Vladimir Putin.
A separate provision would extend the Iran Sanctions Act of 1996 until 2031. The law allows penalties against companies involved in investments in Iran’s energy sector.
Graham’s legacy behind legislation
The bill was championed by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. Graham died on July 11 after returning from a visit to Kyiv.
Following his death, lawmakers from both parties renewed efforts to push the legislation through Congress, with supporters describing it as part of Graham’s efforts to strengthen US support for Ukraine.
Darline Graham, Graham’s sister who was appointed to his Senate seat following his death, said the legislation would force major purchasers of Russian energy to choose between maintaining business ties with the United States and continuing to buy Russian fuel.
Blumenthal, meanwhile, said Graham would have been proud of the Senate’s action.
Potential impact on India
The proposed tariff mechanism could have significant implications for India-US trade relations.
India has remained a major buyer of Russian crude oil, particularly since the Ukraine conflict reshaped global energy flows. New tariffs of such magnitude could put pressure on Indian exporters and potentially complicate New Delhi’s efforts to maintain its energy relationship with Moscow while expanding trade with Washington.
The issue could also become an important factor in ongoing discussions between India and the United States over tariffs and market access.
Critics warn of expanded presidential powers
Not all lawmakers have welcomed the measure. Some Democrats have raised concerns that the bill would give the US President sweeping authority to introduce tariffs, potentially adding another tool to an already aggressive US trade policy.
Congressmen Gregory Meeks and Don Beyer said they supported measures aimed at holding Russia accountable but argued that the proposed tariff powers could be used too broadly.
They also warned that additional tariffs could ultimately raise costs for American consumers and businesses.
House to take up bill after August recess
The legislation will now move to the US House of Representatives, which is expected to consider it after lawmakers return on August 31.
The House could approve the Senate version, modify it or reject it. Any changes would have to be resolved before the legislation can reach the President.
For India, the Senate vote represents a fresh source of uncertainty, as the proposed tariff powers could directly link access to the lucrative US market with New Delhi’s continued purchases of Russian energy.
