Washington, 08 August (H.S.): The United States has stepped up pressure on countries that continue to purchase oil and gas from Russia, with the US Senate overwhelmingly approving the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a vote of 86-11. The proposed legislation could authorise additional tariffs of up to 100% on imports from countries that continue to purchase Russian energy, including India and China. However, the tariffs have not yet been imposed, and the bill must clear further legislative hurdles before it can become law.

According to reports by The Guardian and other media outlets, India is among the major countries that could potentially be affected by the legislation because it has remained a significant buyer of Russian crude oil since 2022. However, the Senate’s approval of the bill does not mean that a 100% tariff has been imposed on India immediately. The legislation still needs to pass the US House of Representatives and subsequently be signed into law by the President.

Following the outbreak of the Russia-Ukraine war, India increased its purchases of Russian crude after Western countries imposed sanctions and restrictions on Russian energy. The availability of discounted Russian crude enabled Indian refiners to secure oil at relatively lower prices and helped support the country’s energy security.

However, India’s continued purchases of Russian oil could now bring it within the potential scope of the proposed US measures. Under the legislation, if the President chooses to exercise the authority provided by the bill, additional tariffs of up to 100% could be imposed on goods imported into the United States from major purchasers of Russian energy. The measure is designed to target the largest buyers of Russian crude oil or natural gas and countries that facilitate sanctions evasion.

Such a move could have a direct impact on Indian exporters. Higher tariffs would make Indian products more expensive in the US market, potentially weakening their competitiveness and placing additional pressure on India-US trade relations.

The most important point is that no new 100% tariff has been imposed on India at present. The Senate has approved legislation that could give the President the authority to impose such tariffs under specified circumstances. For the measure to become law, it must first be passed by the House of Representatives and then signed by the President. Even after enactment, the tariffs would not automatically take effect; the President would retain discretion over whether, when and against which countries to exercise the authority.

The bill is not limited to countries purchasing Russian oil. It also contains provisions for additional sanctions targeting Russian officials, oligarchs, financial institutions, energy-related entities and other actors connected to Moscow’s war effort. The legislation also targets Russia’s so-called “shadow fleet”, which is used to transport Russian oil and help circumvent Western sanctions.

The legislation also includes measures related to Iran, aimed at continuing restrictions on the Iranian energy and weapons sectors. Its broader objective is to maintain economic pressure on both Moscow and Tehran.

The bill received overwhelming bipartisan support in the Senate and passed by a vote of 86-11. However, some lawmakers have raised concerns about granting the President broad authority to impose tariffs. Critics, including Republican Senator Rand Paul and Democratic Senator Ron Wyden, have argued that such extensive executive powers could allow tariffs to be used beyond the intended purpose of pressuring Russia, potentially affecting other trade disputes as well.

Supporters of the legislation argue that putting pressure on Russia’s energy revenues could form an effective part of the economic strategy against Moscow over the war in Ukraine. Their argument is that compelling major purchasers of Russian energy to reconsider their dependence could reduce Moscow’s ability to finance its military campaign.

The bill will now move to the US House of Representatives for consideration. It will become law only if it is approved by the House and subsequently signed by the President. If enacted and the President exercises the powers provided under the legislation, the measure could have significant implications for India-US trade, Indian exports and India’s energy relationship with Russia.

It is therefore important to note that the US Senate has not imposed a 100% tariff on India. Rather, it has advanced legislation that could empower the President to impose additional tariffs of up to 100% on major purchasers of Russian energy under certain conditions. The ultimate impact on India will depend on the bill’s passage through the House, its enactment into law and the President’s decision on whether to exercise the tariff authority.

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Hindusthan Samachar / Jun Sarkar