US lawmakers have revised the Russia sanctions bill, lowering the proposed tariff threat from 500 per cent to a maximum of 100 per cent on top buyers of Russian oil and gas, including India and China.

The measure, backed by President Donald Trump, honours the late Senator Lindsey Graham and introduces exemptions for certain European countries reducing their dependence on Russian energy.

The revised sanctions bill represents a significant softening compared to the earlier draft. The original proposal had threatened blanket tariffs of up to 500 per cent on all third-party buyers of Russian energy. 

The updated version narrows this to a maximum of 100 per cent, applied only to the five largest purchasers of Russian oil and gas. These include China, India, Slovakia, Hungary, and Azerbaijan for crude oil, and China, France, Japan, Hungary, and Belgium for natural gas.

A key exemption has been introduced for countries importing less than 15 per cent of Russia’s natural gas exports and taking meaningful steps to reduce those imports. This provision could exempt Japan, France, Hungary, and Belgium, shielding them from the full impact of the tariffs. The bill also grants President Trump authority to waive sanctions if he determines it is in the US national interest, providing flexibility in its application.

Beyond tariffs, the legislation imposes sweeping sanctions on Russia’s economy. It targets Russia’s shadow fleet of tankers, which operate outside Western maritime services, and places restrictions on Russian financial institutions, including the Central Bank of the Russian Federation. It also sanctions major state-owned energy projects such as Yamal LNG and Arctic LNG 1, 2, and 3, aiming to cut off Moscow’s ability to finance its war in Ukraine.

The bill was championed by Senator Lindsey Graham, who passed away last week. Graham had announced during a visit to Ukraine, just a day before his death, that he had reached an agreement with President Trump to move the legislation forward after more than a year of negotiations. His colleagues described the measure as a tribute to his legacy, noting his determination to push for tougher action against Russia.

Senate aides confirmed that the bill already has 26 co-sponsors from both parties, with more expected to join. They expressed confidence in its passage, emphasising bipartisan support and the urgency of increasing pressure on Moscow. Lawmakers believe the sanctions will ramp up economic pressure on Russia, which has sustained a four-year-long invasion of Ukraine, causing an estimated two million military casualties and nearly $200 billion in damage to Kyiv.

President Trump has voiced strong support for the bill, describing it as a way to honour Graham’s memory. He also suggested that sanctions on Iran and Hezbollah might be added, calling such additions a “very big thing.” However, Democratic Senator Richard Blumenthal urged caution, arguing that the bill should move forward without opening it to new targets, to ensure swift passage.

For India and China, the revised bill offers some relief compared to the earlier 500 per cent tariff threat. However, the measure still places them directly in Washington’s crosshairs as two of the largest buyers of Russian crude.

If tariffs are imposed, they could significantly strain already volatile trade relations with the United States, while also raising costs for energy imports. India has consistently defended its purchases of discounted Russian oil as essential for energy security and consumer affordability, but the new legislation signals that continued reliance on Moscow’s energy supplies could carry heavy costs.

Agencies