A revised version of a major Russia sanctions bill unveiled in the US Senate has softened the tariff threat facing India and China, the two largest buyers of Russian crude oil. The updated legislation lowers the maximum tariff on countries purchasing Russian oil and gas to 100%, sharply down from the blanket 500% proposed in the original bill.
Key Highlights
- US Senate softens Russia sanctions bill, cutting India's potential tariff from 500% to 100%.
- Trump retains authority to waive sanctions on countries buying Russian oil if deemed in national interest.
India Named Among Top Five Targeted Countries
The bill targets the top five purchasers of Russian crude - China, India, Slovakia, Hungary, and Azerbaijan - with tariffs of up to 100% on their imports. Notably, India does not feature among the top importers of Russian natural gas, which include China, France, Japan, Hungary, and Belgium, meaning the tariff exposure for India is centred specifically on its crude oil purchases from Russia.
A Bipartisan Push to Pressure Russia
The bipartisan measure, backed by both Republican and Democratic senators, is designed to pressure countries into reducing their dependence on Russian energy, while also imposing direct sanctions on Russian officials, the country's shadow oil tanker fleet, major financial institutions, and state-owned energy projects. The bill also extends sanctions to Russia's shadow fleet of tankers operating outside Western maritime services, the Central Bank of the Russian Federation, and major state-owned energy ventures including Yamal LNG and Arctic LNG 1, 2, and 3.
Trump Retains Waiver Authority
Crucially, the revised bill gives US President Donald Trump the authority to waive the sanctions if he determines doing so is in the national interest - a provision reflecting months of negotiation required to bring the White House on board. This waiver clause could prove significant for India, as it gives the US administration flexibility in how strictly the tariff provisions are ultimately enforced against key trading partners.
Strong Bipartisan Backing in the Senate
The bill was originally championed by the late Senator Lindsey Graham, a Republican from South Carolina, who introduced it in April 2025 alongside Connecticut Democrat Richard Blumenthal. Senate aides said 26 senators had co-sponsored the legislation, with that number expected to grow. One aide noted the bill currently has broad buy-in and is likely the version that will move forward to put pressure on Russia. Graham died suddenly on Saturday, just a day after announcing in Ukraine that Trump had agreed to move the bill forward, with Trump calling it "his thing" and expressing hope that it would pass in his honour.
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Why This Matters for India
For India, which has significantly increased its purchases of discounted Russian crude oil since the Ukraine conflict began, the softening of the tariff threat from 500% to 100% represents a meaningful reduction in potential trade risk. However, the bill's final shape - and how strictly any tariffs would be enforced given the presidential waiver provision - remains to be seen as the legislation continues to develop in the Senate.
