US Senate Passes Bill Targeting Russian Oil Buyers With Tariffs

The United States Senate passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, a bill designed to curtail Moscow's energy revenues. The legislation grants Donald Trump the authority to impose tariffs of up to 100 percent on imports from the five largest purchasers of Russian oil and gas. The bill now moves to the US House of Representatives for consideration after August 31 before requiring the president's final approval.

India faces significant risk as a primary target, having increased its reliance on Russian crude to a record 2.8 million barrels per day in July 2026, accounting for approximately 55.5 percent of its total imports. While analysts suggest India is unlikely to reduce these purchases in the near term, a rapid curtailment of Russian oil could tighten global markets and increase India's import costs.

Economists note that India could diversify its trade by targeting a $200 billion market across 15 alternative countries, including the UK, France, and Saudi Arabia. There are warnings that such tariffs would induce inflation for American consumers who rely on India for low-cost, labour-intensive goods. India and the US are currently negotiating a bilateral trade agreement, and the final impact of the bill may depend on potential exemptions to avoid disrupting global crude availability.