US senators propose tariffs up to 100% on top Russian oil buyers
New Sanctions Bill Targets Top Russian Oil Buyers with Up to 100% Tariffs
Bharatmorningnews.com – Bipartisan US senators introduced a new sanctions bill on Tuesday, aiming to impose duties of up to 100% on oil exports from India, China, Slovakia, Hungary, and Azerbaijan. The measure targets nations that have increased their purchases of Russian crude, marking a continued effort to reduce Moscow’s energy income and pressure an end to the Ukraine conflict.
A Revised Approach to Sanctions
The proposed legislation is a more moderate version of the Sanctioning Russia Act, which had initially suggested tariffs as high as 500% but stalled in the Senate due to political opposition. Supporters claim the bill could pass by August, with the US Trade Representative (USTR) deciding the exact rates for each country.
India’s Shift to Russian Crude
India’s reliance on Russian oil has risen sharply, driven by supply chain disruptions after Iran’s retaliation against US-Israeli strikes blocked Gulf crude through the Strait of Hormuz. This crisis forced refiners to seek alternatives, with Russian crude becoming a primary source. In June 2026, Indian imports of Russian crude hit record levels, valued at €4.5 billion, representing 36% of Russia’s total crude export revenues. China remained the largest buyer, followed by India.
Trade Talks and Tariff Adjustments
Amid ongoing trade negotiations, the bill arrives as India’s goods face a 15% tariff under Section 122 of the Trade Act of 1974—a temporary measure set to expire on July 24. A February agreement had outlined an 18% rate for Indian products, but it was overturned when the Supreme Court declared President Donald Trump’s use of IEEPA emergency powers unconstitutional.
“It imposes tariffs that are targeted, narrowly limited to the five major purchasers, up to 100%, with waiver authority that is narrowly tailored and constricted. And those five major purchasers right now of oil are China, India, Slovakia, Hungary, Azerbaijan,” Senator Richard Blumenthal said at a press conference in Washington on Tuesday.
The bill includes exceptions for countries importing Russian natural gas if their purchases account for less than 15% of total Russian gas exports and they are actively reducing their dependence. It also targets additional sectors within Russia’s energy, defense, financial, and industrial industries with supplementary penalties.
Additional Sanctions and Exceptions
Senator Richard Blumenthal emphasized that the USTR would determine tariff levels to discourage oil and gas acquisitions by the five key buyers. “The decision about the exact rate will be determined by the United States Trade Representative. We’ve had extensive discussions with him. I think it will be set at an appropriate level to discourage China, India, and other major purchases of Russian oil and gas. Remember that there are reporting and certification requirements from the US Trade Representative to the Congress if the rate is lowered,” he stated.
Mixed Reactions to the Bill
Democratic Senator Jeanne Shaheen, who supports the measure, noted that it contains “much narrower” provisions compared to the original Sanctioning Russia Act. The earlier version faced opposition due to its extreme terms and lack of presidential backing. Senator Lindsey Graham, the bill’s original sponsor, passed away on Saturday following an aortic dissection. Legislators at the press conference honored his role, while Trump suggested the legislation might also incorporate sanctions against Iran.