Russia Sanctions Bill Update: Why China and India Face Lower Tariffs Under New Proposal
U.S. senators introduced a revised version of a long-stalled Russia sanctions bill on Tuesday, and the new draft pulls back sharply on the tariff threat that had loomed over China and India, the two largest buyers of Russian crude. Where the original proposal called for a blanket 500% tariff on countries importing Russian oil and gas, the updated version caps it at 100%, and only for the five biggest purchasers.
Those five are China, India, Slovakia, Hungary and Azerbaijan on the crude side, natural gas, the top buyers are China, France, Japan, Hungary and Belgium. The bill also carves out an exemption for countries that import less than 15% of Russia’s natural gas exports and can show they’re actively cutting that dependence, a provision that Senate aides say could shield Japan, France, Hungary and Belgium from the tariffs altogether.
The softened tariff threat reflects a balancing act Washington has been working through since the bill was first introduced: how to keep squeezing the revenue that funds Russia’s war in Ukraine without triggering a shock to global oil markets or straining relationships with major buyers like India and China. A blanket 500% tariff risked disrupting energy supply for economies that depend heavily on Russian crude, and some lawmakers had warned that an overly aggressive version could damage ties with partners who otherwise support Ukraine. The revised bill tries to keep the pressure on Moscow while giving those buyers, and the markets they move, room to adjust.
A bill tied to Lindsey Graham’s final push
The legislation was championed for more than a year by Senator Lindsey Graham, who died suddenly last Saturday. Graham had announced just a day before his death, during a trip to Ukraine, that he’d struck a deal with President Trump to finally move the bill forward. Trump tied the bill’s momentum directly to Graham on Tuesday, “This is in honor of Lindsey. This was his thing. He wanted this more than anything.” The bipartisan measure has 26 co-sponsors so far, with Senate aides expecting more to sign on shortly.
What else is in the bill
Beyond the tariff cap, the bill sanctions Russia’s shadow fleet of tankers, which move oil outside Western shipping and insurance networks, along with major Russian financial institutions, including the Central Bank of the Russian Federation and state-backed energy projects such as Yamal LNG and Arctic LNG 1, 2 and 3. It also gives Trump the ability to waive the sanctions if he judges that doing so serves the national interest.
Why the tariff cap was lowered
Sanctions supporters argue that continued purchases of Russian energy help sustain Moscow’s military campaign, and the bill’s core goal remains cutting off that revenue. But the original 500% tariff threat drew concern that it could hit U.S. allies and disrupt global energy markets more broadly, since India and China alone account for a large share of Russian crude exports. Lowering the cap to 100% and limiting it to the top five buyers, while carving out an exemption for smaller importers actively reducing their reliance on Russian energy, was meant to blunt that risk without abandoning the pressure campaign.
