The US Senate has advanced a major Russia sanctions bill that could expose India and four other countries to tariffs of up to 100% over their continued purchases of Russian energy. The legislation cleared a key procedural vote on Tuesday as Ukrainian President Volodymyr Zelenskiy visited the US Capitol.
If the bill eventually becomes law, it could increase pressure on countries that continue to rely heavily on Russian oil and gas while also adding fresh strain to India-US trade relations.
Senate Backs Tougher Sanctions
The legislation secured an 86-12 procedural vote in the Senate, allowing it to move forward for further consideration.
The bill seeks to impose sanctions on Russian officials and authorise tariffs of up to 100% on imports from India, China, Slovakia, Hungary and Azerbaijan. Lawmakers say the aim is to encourage these countries to reduce their dependence on Russian energy following Moscow’s invasion of Ukraine.
The measure was introduced in April 2025 by the late Senator Lindsey Graham. Earlier this year, Graham said the proposal had received backing from President Donald Trump during a period of growing trade tensions between Washington and New Delhi.
Why India Could Be Affected
India’s purchases of Russian crude have increased significantly over the past year, largely because of disruptions to global energy supplies.
The conflict in West Asia and disruptions to shipping through the Strait of Hormuz reduced the availability of Gulf crude, which had previously supplied around 40% of India’s oil imports. As a result, Indian refiners increased imports of Russian oil to meet domestic demand.
Earlier, Senator Richard Blumenthal said the legislation would include an exception for countries buying Russian gas if those purchases account for less than 15% of Russia’s total gas exports.
Previous US Tariffs On India
The US first took action against India’s energy trade with Russia in August 2025, when President Donald Trump announced an additional 25% tariff on Indian goods, accusing India of “fueling Putin’s war”.
That decision increased total US tariffs on Indian imports to 50%, matching the levels imposed on China and Brazil, and contributed to a pause in trade negotiations between Washington and New Delhi.
Russian Oil Imports Rose After US Waiver
The global energy market changed after the outbreak of the US-Iran conflict in February, when the blockade of the Strait of Hormuz triggered supply concerns.
In response, the US introduced a waiver allowing continued purchases of Russian oil under certain conditions, stating that these transactions would not generate profits for Russia.
Following the waiver, India’s imports of Russian crude surged. According to the Centre for Research on Energy and Clean Air, imports rose 34% in June 2026, reaching a record value of €4.5 billion and accounting for about 36% of Russia’s crude oil export revenues. India is currently the second-largest buyer of Russian crude after China.
What It Could Mean For India-US Relations
If the sanctions bill is approved and implemented, it could create fresh challenges for relations between New Delhi and Washington.
Both countries are currently negotiating a bilateral trade agreement that is expected to reduce overall US tariffs on Indian goods to 18%.
At present, Indian exports enter the US under a 15% temporary tariff, after the US Supreme Court struck down President Trump’s earlier tariff increases. However, that temporary duty is scheduled to expire on July 24, adding further uncertainty to the ongoing trade discussions.
First published on: Jul 29, 2026 07:01 AM IST
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