More than 60 US senators from both Republican and Democratic parties have backed the Sanctioning Russia Act of 2026, a proposed law that could have far-reaching consequences for countries buying Russian oil, including India. The bill seeks to tighten economic pressure on Moscow by targeting its oil and gas revenues, which US lawmakers claim are helping finance the war in Ukraine.
The bipartisan legislation, supported by US President Donald Trump and several senior lawmakers, is now expected to gain momentum in Congress, especially with the passing of US Senator Lindsey Graham, the prominent proponent and lead designer of the bill. If passed, it could complicate India’s purchase of Russian crude, potentially affecting the country’s energy security and oil import strategy.
What the bill actually does
According to the official proposed bill, the main goal is simple: stop money from flowing to Vladimir Putin’s war machine. It does this in two big ways. First, it slaps strong mandatory sanctions directly on Russia, targeting Putin himself, top political and military leaders, oligarchs, state-owned companies, banks like the Central Bank, Sberbank, and Gazprombank. It also hits major energy projects such as the Yamal LNG and Arctic LNG projects.
Second, and more importantly for countries like India, it uses targeted tariffs on the world’s top buyers of Russian energy. The US Trade Representative (USTR) would identify the top 5 purchasers of Russian crude oil or natural gas. Tariffs of up to 100% could then be placed on imports from those countries into the United States. The same applies to the top 5 countries helping Russia dodge existing sanctions.
Currently, the top purchasers of Russian crude include China, India, Slovakia, Hungary, and Azerbaijan. India has become one of the largest buyers since the war began, taking advantage of lower prices to meet our country’s energy needs and keep costs manageable for consumers.
Relief for some European countries
The bill is not one-size-fits-all. It gives an important exemption for countries whose Russian natural gas imports are less than 15% of Russia’s total natural gas exports and who are actively reducing those imports. This appears designed to protect many European allies. The USTR will review the top 5 list every 180 days and can adjust tariffs based on how purchasing patterns change.
Presidential waiver and flexibility
Importantly, the President can waive sanctions or tariffs if he certifies to Congress that it is in the national interest of the United States. This provides a diplomatic off-ramp and room for negotiations.
The current version is softer than earlier drafts, which had talked about much higher blanket tariffs. Lawmakers refined it after long talks to make it more focused and achievable.
Why this matters to India
India’s imports of Russian oil surged in recent months. Cheaper Russian crude has helped our refineries run efficiently and supported energy security at a time when global prices remain volatile. Any US tariffs on Indian exports to America could raise costs, affect trade, and put pressure on Indian businesses.
At the same time, India has always said its purchases are commercial decisions meant to serve national interests and benefit Indian consumers. New Delhi maintains friendly ties with Russia while deepening its strategic partnership with the United States.
This is not yet the law. It still needs to pass both houses of Congress. But with broad bipartisan support and White House backing, it has real momentum.
For millions of Indians, this could eventually influence fuel prices, inflation, and the cost of living. It highlights the complex global energy politics India must navigate – balancing affordable energy for growth with strong international relationships.
A tribute to the late Lindsey Graham
Many senators have described the bill as a fitting tribute to Senator Lindsey Graham, who worked on it until the very end. They argue that with Ukraine making progress on the battlefield, now is the time to increase economic pressure on Russia and push for peace.
The bill also includes measures against Russia’s “shadow fleet” of tankers used to evade sanctions and incorporates other bipartisan ideas targeting support for Russia’s defence industry.
