The US Congress has passed legislation giving President Donald Trump broad authority to sanction Russia’s crude exports and impose tariffs of up to 100 percent on exports to the United States from major buyers of Russian energy. The bill has been sent to Trump to sign into law, so the tariffs are not automatic.
China and India, which together account for most Russian crude purchases, are likely to face the greatest pressure if the powers are used. The measure also permits tariffs of up to 500 percent on Russian imports directly into the United States.
What the bill would allow
The legislation would let the president use the International Emergency Economic Powers Act to impose sanctions on Russian crude exports and entities involved in sanctions evasion. It was approved by the House of Representatives on Wednesday and is described as the most significant US action against Moscow since Trump returned to the White House.
The proposed tariff authority could apply to exports to the United States from the five largest purchasers of Russian energy, military equipment or countries facilitating sanctions evasion. The measure is intended to restrict the economic pipeline that has helped Russia fund its war against Ukraine, now in its fifth year.
Key points
- The bill is called the Lindsey O Graham Sanctioning Russia Act of 2026.
- It would target Vladimir Putin, more than 20 senior officials and companies linked to Russia’s defence industry.
- It would also target Russia’s “shadow fleet” of oil tankers and networks used to evade energy sanctions.
- The United States imported $3.8bn in goods from Russia in 2025.
Why China and India are central
China buys about half of Russia’s crude oil exports and India accounts for 37 percent, according to August data from the Centre for Research on Energy and Clean Air. Türkiye and the European Union each account for about 5 percent, the same data says.
India’s Ministry of External Affairs said New Delhi had raised the legislation’s possible effects with US interlocutors and would take necessary measures to protect its trade and economic interests. It said the government would work with trade and industry bodies on the implications.
The International Energy Agency has warned that India’s increasing reliance on imported crude has major energy-security implications. IEA tanker-tracking data showed Indian imports of Russian crude fell to 1.1 million barrels per day in January, from an average of 1.7 million barrels per day in 2025. Russian deliveries to China reached a record high that month, according to the same material.
The wider oil-market risk
China’s supply position differs from India’s because some Russian crude reaches it through the Eastern Siberia-Pacific Ocean pipeline system rather than by sea. That overland route is not affected by disruptions in the Strait of Hormuz. Related coverage: Brent crude approaches $97 as Strait of Hormuz traffic falls.
The legislation arrives while alternative supplies face pressure. About one-fifth of global oil shipments travelled through the Strait of Hormuz before the war with Iran began. Saudi Arabia also temporarily shut its East-West pipeline after a drone attack and cancelled some deliveries to European customers. Read the context: Trump Administration Adjusts Iran War Strategy to Ensure Strait of Hormuz Oil Shipments.
If the tariffs lead major buyers to reduce Russian purchases sharply, China and India could compete for replacement barrels in an already tight market. The material identifies the possibility of sharply higher global oil prices, but the outcome depends on how aggressively Trump uses the new authority.
What happens next
The bill has been sent to President Trump for signature. Any tariffs would require a separate presidential decision because the legislation authorises them but does not impose them automatically.
Related coverage:
No comments yet. Start the discussion.