India and China got some relief after US lawmakers revised a proposed Russia sanctions bill that had earlier threatened a massive 500% tariff on countries continuing to buy Russian energy. The updated version reduces the maximum tariff that could be imposed on major buyers of Russian oil and natural gas.
Originally introduced by late Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, the bipartisan bill aims to increase economic pressure on Moscow over its war in Ukraine. The legislation proposes sanctions against Russian officials and penalties targeting countries that continue purchasing Russian energy.
The earlier version included a blanket 500% tariff proposal on nations importing Russian oil and gas. The revised draft has changed that provision and lowers the possible tariff on third-party buyers to a maximum of 100% for the top five purchasers of Russian crude.
India and China are among the largest buyers of Russian oil, along with Slovakia, Hungary and Azerbaijan. The move comes as Washington continues efforts to limit Russia’s energy revenues, which lawmakers say help fund Moscow’s military operations in Ukraine.
New bill offers exemptions for some gas buyers
The revised draft also includes an exemption for countries that import less than 15% of Russia’s natural gas exports and are taking steps to reduce those purchases.
This provision could benefit countries such as Japan, France, Hungary and Belgium, which are among the major importers of Russian natural gas.
The bill still includes several strict measures against Russia. These include sanctions on Russia’s “shadow fleet” of oil tankers that operate outside Western maritime services, financial institutions including the Central Bank of the Russian Federation and major state-owned energy projects such as the Yamal LNG and the Arctic LNG 1, 2 and 3.
The revised legislation also gives President Trump the authority to waive sanctions if he believes doing so is in national interest of the United States.
Bill targets Moscow with tougher sanctions
US lawmakers supporting the bill say the measures are aimed at increasing pressure on Russia to end the war in Ukraine, which has continued for more than four years. They argue that reducing Russia’s energy income would affect Moscow’s ability to finance the conflict.
China, India, Slovakia, Hungary and Azerbaijan are among the biggest buyers of Russian crude oil. In the natural gas market, China, France, Japan, Hungary and Belgium are among the leading importers.
Graham’s push for tougher Russia sanctions
The bill was a major priority for Senator Graham, who had announced during a visit to Ukraine that he had reached an agreement with President Donald Trump to move forward with the sanctions proposal. The announcement came more than a year after the bill was first introduced.
Senate aides said the legislation had 26 co-sponsors and expected additional support in the following hours. One aide said, “We are pretty confident on its path.”
The latest version revises the original proposal introduced by Graham, a Republican from South Carolina, and Blumenthal, a Connecticut Democrat, in April 2025.
For India and China, both heavily dependent on imported energy, the revised tariff structure reduces the immediate risk of facing the earlier proposed 500% penalty. However, the bill continues to target countries maintaining major energy trade links with Russia as Washington seeks to tighten economic pressure on Moscow.
Bureau Report
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