US revises Russia sanctions bill, caps tariffs at 100% for India, China

The United States Senate has introduced a revised version of the Russia sanctions bill that lowers the maximum tariff on countries buying Russian oil and gas from the previously proposed 500% to a ceiling of 100%. The draft targets the five largest importers of Russian crude—India, China, Slovakia, Hungary and Azerbaijan—and similarly lists the top natural‑gas buyers, adding exemptions for nations that import less than 15% of Russia’s gas and are taking steps to cut those imports.

The legislation, originally championed by the late Senator Lindsey Graham and now backed by 26 bipartisan co‑sponsors, also expands sanctions to Russian financial institutions, the “shadow fleet” of tankers and major state‑owned energy projects. It gives the president authority to waive the tariffs in the national interest. While President Donald Trump has signaled support, the bill remains a proposal and must still pass the full legislative process.

China has publicly opposed the measure, and analysts at the Global Trade Research Initiative say the revised bill is unlikely to affect India significantly. Hungary could be among the most exposed European countries. The proposal is presented as a tool to increase pressure on Moscow over the war in Ukraine while limiting collateral impact on global trade partners.