US Senate Softens Russia Sanctions Bill for India

On July 14, a bipartisan Senate panel in the US tabled a revised version of the Sanctioning Russia Act, that considerably watered down the threat of a tariff against countries that keep buying Russian oil and gas, including India.

Tarrifs: From 500% to 100%

The initial proposal, which was introduced in April 2025, would have called for a 500% tariff on all imports of Russian energy — a blanket measure that could have applied to over 60 countries. The new text, in turn, will limit tariffs to 100% and only for the five top buyers of Russian oil and natural gas.

It is not against our European allies that we are aiming here. “It's very important that we have formulated this bill and focused it and targeted it very specifically to the big buyer of Russian oil and gas,” Connecticut Democratic Sen. Richard Blumentahn told reporters, according to news agency PTI.

The top five buyers are China, India, Slovakia, Hungary and Azerbaijan, according to Blumenthal, but Senate aides singled out the United Arab Emirates, Turkey, Singapore and some Central Asian states as places where sanctions are being evaded.

The bill also includes an exemption for countries that import less than 15% of Russia's annual natural gas supply, but are making a concerted effort to reduce reliance on the gas — a measure favouring Japan, France and Belgium.

Honouring Graham's Legacy

The changes to the bill were made after the death of Republican Senator Lindsey Graham of South Carolina, who, days after traveling to Turkey's capital of Ankara to court President Donald Trump's approval of the compromise, went on to get the Republican Party's backing.

In a statement via Axios, Blumenthal said that "when Senator Graham and I last spoke, he was absolutely exultant, calling from Kyiv that President Trump would support this bill.

The bill has accrued over 26 co-sponsors from both sides of the aisle, and even Senate Democratic Leader Chuck Schumer has asked the Senate to vote on it "on behalf of Lindsey. Trump has not yet endorsed the bill but on July 14 stated it had "a good chance" of passing, and proposed adding more measures against Iran and Hezbollah.

Beyond Tariffs

The bill calls for mandatory sanctions against the Russian political leadership, financial institutions, including the Central Bank of Russia, defence industry, energy industry, and Russia's "shadow fleet" of tankers that operate without the protection of Western shipping and insurance companies. It also aims at state-backed projects like Yamal LNG and Arctic LNG.

Should India be concerned?

The new narrow definition and lower tariff ceiling is a welcome reprieve for New Delhi, which has been buying discounted Russian crude despite Western pressure, but the bill also includes a congressional certification provision that means India could still be facing much worse if Washington decides to enforce it once it is passed.