Washington, D.C.: The United States has unveiled a revised version of its proposed Russia sanctions bill, significantly reducing the tariff burden that could be imposed on countries importing Russian energy. The move is being viewed as a major relief for key buyers of Russian crude oil and natural gas, including India and China, while maintaining pressure on Moscow over its ongoing war in Ukraine.
The bipartisan legislation, originally introduced by late Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, had initially proposed imposing tariffs of up to 500 per cent on countries purchasing Russian oil and gas. However, after months of negotiations, US lawmakers have revised the proposal, lowering the maximum tariff to 100 per cent and giving President Donald Trump the authority to determine whether and how such tariffs should be implemented.
The legislation forms part of Washington’s broader strategy to intensify economic pressure on Russia in an effort to bring an end to its prolonged military campaign in Ukraine. According to US lawmakers, the conflict has continued for four years, causing widespread destruction across Ukraine, resulting in nearly $200 billion in damages and claiming the lives of an estimated two million military personnel.
The revised bill seeks to target not only Russian officials and institutions but also countries that continue to purchase Russian energy resources. Lawmakers argue that limiting Moscow’s energy revenues remains one of the most effective ways to weaken its ability to finance the war.
India and China, two of the world’s largest importers of Russian crude oil, were expected to be among the countries most affected by the original proposal. Other major buyers of Russian crude include Slovakia, Hungary and Azerbaijan. In the natural gas sector, China, France, Japan, Hungary and Belgium are among the largest importers of Russian supplies.
The reduction in the proposed tariff ceiling is therefore likely to ease concerns among several US trading partners, particularly India and China, whose growing energy ties with Russia have been closely watched since the Ukraine conflict began.
Under the revised legislation, tariffs on third-party buyers of Russian oil and natural gas would be capped at a maximum of 100 per cent instead of the originally proposed blanket rate of 500 per cent. Additionally, the bill introduces an exemption for countries importing less than 15 per cent of Russia’s natural gas exports, provided they are taking meaningful steps to reduce their dependence on Russian supplies. This provision could potentially benefit countries such as Japan, France, Hungary and Belgium.
Beyond tariffs, the proposed legislation expands sanctions against several components of Russia’s economic and energy infrastructure. It targets Russia’s so-called “shadow fleet” of oil tankers that operate outside Western maritime services, Russian financial institutions including the Central Bank of the Russian Federation, and major state-backed energy projects such as Yamal LNG and Arctic LNG 1, 2 and 3.
The revised bill also grants President Trump the authority to waive sanctions if doing so is deemed to be in the national interest of the United States. This provision provides the administration with greater flexibility in responding to evolving geopolitical and economic circumstances.
According to a Senate aide quoted by Reuters, several provisions in the original proposal were softened after extensive discussions aimed at securing the support of the White House. The aide said the revised legislation represented the only proposal that had broad consensus among lawmakers and the administration.
Before his death last week, Senator Lindsey Graham had announced during a visit to Ukraine that he had reached an understanding with President Trump to move forward with the sanctions package. Graham had been one of the strongest advocates of increasing economic pressure on Russia and had championed the legislation for more than a year.
Senate aides indicated that the bill already has 26 co-sponsors, with expectations that additional lawmakers will support the measure as it advances through Congress. They expressed confidence regarding its prospects for passage.
President Trump has also voiced optimism about the bill becoming law. Speaking at the White House, he suggested that sanctions targeting Iran and Hezbollah could be incorporated into the legislation, describing the potential expansion as a significant development.
However, Senator Blumenthal urged caution against expanding the scope of the legislation. While acknowledging the president’s support, he argued that lawmakers should prioritise passing the existing bill rather than reopening negotiations to include additional targets.
