US clears Bill for steep tariffs on buyers of Russian oil
Washington: In a move aimed at squeezing Moscow’s war economy, the US Congress has approved a Bill that would allow tariffs of up to 100 per cent on goods from countries that are major buyers of Russian oil and gas, handing President Donald Trump a new sanctions tool that has split Democrats over fears of expanded executive trade powers.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 cleared the House on Wednesday by 262-159, after passing the Senate 86-11 on August 7. White House advisers have recommended that Trump sign the measure into law.
The legislation seeks to drain revenue streams that fund Russia’s military campaign in Ukraine. It tightens restrictions on Russian officials, banks and energy assets, while going after foreign entities that help sustain Moscow’s defence operations.
Under the Bill, Russian-origin goods could face tariffs as high as 500 per cent. Countries identified as significant purchasers of Russian oil and gas, or as key facilitators of sanctions evasion, could see US duties of up to 100 per cent on their exports to America. The US Trade Representative would review the list of covered countries every 180 days and could add more names.
An exemption is built in for nations whose imports of Russian natural gas make up less than 15 per cent of Russia’s total gas exports, provided they are taking meaningful steps to cut those purchases, according to Senator Katie Britt’s office. The statements released so far do not name India as a target or specify any India-focused tariff rate.
Proponents said the added economic pressure is meant to push Russia towards negotiations. “Peace becomes possible when aggression carries a cost greater than its reward,” said Representative Brian Fitzpatrick, co-chair of the Congressional Ukraine Caucus.
The sanctions net would extend to major Russian financial institutions and to foreign banks handling significant transactions with sanctioned Russian lenders. It also covers ships, their owners and operators, insurers and ports involved in evading oil sanctions.
New US investment in Russia’s energy sector, purchases of Russian sovereign debt and financial services used to bypass sanctions would be restricted. The Bill also prolongs the Iran Sanctions Act of 1996 until 2031.
While the package drew broad bipartisan backing, many Democrats objected to the tariff powers it would grant Trump. CQ reported that 58 Democrats voted in favour, with only seven Republicans opposing. Representative Joaquin Castro said he supported the financial and investment curbs but warned against expanding presidential tariff authority, saying he feared it could be misused to advance Trump’s own agenda rather than target oil buyers.
Others urged passage despite those concerns. “This is an anti-Russia, pro-Ukraine Bill. Let us pass it,” said Representative Steny Hoyer.
Lifting the Russia-related sanctions would require the President to certify to Congress that Moscow has signed a peace deal accepted by Ukraine’s sovereign government, halted military operations and abandoned efforts to overthrow or subvert Kyiv, followed by a congressional review, according to Fitzpatrick’s office.
The Bill, named in memory of Senator Lindsey Graham who helped craft it, comes after more than a year of bipartisan efforts to tighten pressure on Russia following its full-scale invasion of Ukraine in February 2022.
(Inputs from IANS)