The previous version had proposed imposing a massive 500 per cent tariff on countries purchasing Russian energy.
The updated bill reduces the maximum penalty to 100 per cent tariffs and narrows its focus to major purchasers of Russian crude.
STORY CONTINUES BELOW THIS ADAccording to Senate officials, the provision effectively shields around 15 European countries, as well as allies such as Japan, from facing secondary tariffs.
Russian oil imports by India have recently risen further amid disruptions in global energy markets caused by conflicts in West Asia, including tensions around the Strait of Hormuz.
Analysts believe the Trump administration would likely be cautious about measures that could destabilise global energy markets.
A bipartisan group of US senators has introduced a sweeping sanctions package that could majorly alter global energy trade, proposing tariffs of up to 100 per cent on countries that continue importing Russian crude oil.
The revised legislation, titled the Sanctioning Russia Act of 2026, targets five of the largest buyers of Russian oil, namely India, China, Slovakia, Hungary and Azerbaijan, in an effort to pressure Moscow by restricting revenues that help fund its war effort in Ukraine.
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The move has caused immense diplomatic backlash, particularly from New Delhi, which has accused Washington of applying a “double standard” by exempting several European nations that continue to import Russian energy.
Bill aims to squeeze Russia’s war revenues
The sanctions package represents a major revision of an earlier proposal that had remained stalled in Congress for more than a year.
The previous version had proposed imposing a massive 500 per cent tariff on countries purchasing Russian energy. The updated bill reduces the maximum penalty to 100 per cent tariffs and narrows its focus to major purchasers of Russian crude.
The legislation was initially driven by the late Republican Senator Lindsey Graham and has since received backing from President Donald Trump.
If passed, it would mark the first time Congress has explicitly authorised broad tariffs against third-party countries for their role in supporting a foreign government’s wartime economy.
“This imposes tariffs that are targeted: narrowly limited to the five major purchasers — up to 100 per cent,” Senator Richard Blumenthal, a Democratic co-sponsor of the bill, said. “Our European allies are not targeted here.”
European exemption fuels controversy
The most contentious aspect of the legislation is the exemption granted to several US allies.
Under the revised proposal, countries importing less than 15 per cent of Russia’s total natural gas exports — and those taking steps to reduce their dependence on Moscow — would be protected from punitive measures.
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According to Senate officials, the provision effectively shields around 15 European countries, as well as allies such as Japan, from facing secondary tariffs.
The exemption has drawn criticism from Indian officials, who argue that European nations continuing to purchase Russian energy are being treated differently from countries such as India.
India accuses US of ‘double standards’
The proposed tariffs have raised concerns in New Delhi, where officials warned that the measure could complicate ongoing India-US trade negotiations.
India imports more than 88 per cent of its crude oil requirements from overseas markets. After Russia’s invasion of Ukraine in 2022 and Western restrictions on Moscow, India increased purchases of discounted Russian crude to protect energy security and manage domestic inflation.
Russian oil imports by India have recently risen further amid disruptions in global energy markets caused by conflicts in West Asia, including tensions around the Strait of Hormuz.
Reacting to the Senate proposal, Indian officials criticised the move, arguing that targeting New Delhi while exempting European nations would be counterproductive.
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“The US is not taking the right approach. These are double standards vis-a-vis Europe and may not achieve the desired result,” a senior Indian official told The Economic Times. “Making India a punching bag for US foreign policy failures will be counterproductive.”
Political pressure builds in India
The proposed sanctions have also triggered domestic political debate in India.
The opposition Congress party has questioned the government’s response and demanded that Commerce and Industry Minister Piyush Goyal explain how New Delhi plans to address the threat.
The party has argued that India is being publicly targeted by a strategic partner despite pursuing energy policies based on national economic interests.
Uncertain future despite bipartisan backing
Despite strong political support in the Senate, analysts say the legislation faces several hurdles before becoming law.
A key provision included in the bill is a presidential waiver authority, allowing the White House to suspend tariffs on individual countries if enforcing them is deemed harmful to US national security or global economic stability.
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Energy experts have also warned that removing large volumes of Russian crude from global markets could trigger a sharp increase in oil prices, creating economic risks for consumers worldwide.
Analysts believe the Trump administration would likely be cautious about measures that could destabilise global energy markets.
The bill’s passage could also face legal challenges following recent US Supreme Court decisions that have restricted the executive branch’s ability to impose broad trade measures without clear congressional authority.
The Sanctioning Russia Act of 2026 currently has support from 26 bipartisan Senate co-sponsors, with lawmakers pushing for quick action in what they describe as a continuation of Senator Lindsey Graham’s legislative efforts.
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