The United States has brought forward a key bill aimed at delivering a shock to countries purchasing oil and gas from Russia. The US House of Representatives has approved the bill, which imposes further sanctions on Russia and grants the US president the authority to impose heavy tariffs on countries buying oil and gas from Russia. The bill, titled the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” was passed with 262 members voting in favour and 159 voting against. The bill has now moved to US President Donald Trump, and will become law once he signs it.
Under the provisions of this bill, the US president can impose tariffs of up to 100 percent on countries that purchase large quantities of oil or natural gas from Russia. India and China are among the major countries buying oil from Russia, meaning the bill could also affect India. However, there is an important point to note here: a 100 percent tariff has not already been imposed on India. This bill merely grants the US president the authority to impose such tariffs — a new tariff on India would only come into effect once Trump actually exercises that authority.
Russia earns substantial revenue by selling oil and gas, and the US believes this income is being used to sustain Russia’s ongoing war with Ukraine. This is why the US is seeking to increase pressure on countries that purchase oil from Russia, with the intention that reducing purchases of Russian oil would, in turn, reduce the revenue flowing to Russia. If Trump were to use this authority to impose a tariff of up to 100 percent on India, goods exported from India to the US would face steep duties, potentially raising the prices of Indian goods in the American market. However, whether a tariff will actually be imposed, at what rate, and when, will depend on the US president’s decision.
The bill also includes provisions for imposing further sanctions on Russian officials, banks, and financial institutions. It also allows for action against the so-called “shadow fleet” of vessels that assist Russian oil exports — the US says these vessels are used to transport Russian oil while evading Western sanctions. Alongside Russia, the bill also contains provisions relating to Iran, including a measure to extend certain existing sanctions on Iran for another five years. The US Senate had already passed the bill on August 7 by a vote of 86-11, though discussions on the tariff-related provisions continued in the House of Representatives for some time before it, too, passed the bill.
Some Democratic members raised objections to granting Trump greater authority over imposing tariffs, expressing concern that this power could also be used against US allies, and warning that tariffs could raise prices of goods in the US, placing a burden on ordinary people. Ukrainian President Volodymyr Zelensky, meanwhile, welcomed the bill, saying it would help increase economic pressure on Russia.