The US Senate has passed a major Russia sanctions bill that could allow President Donald Trump to impose tariffs of up to 100% on countries that remain among the biggest buyers of Russian oil and natural gas, including India and China.
The legislation was approved by an overwhelming 86-11 vote and will now move to the US House of Representatives for consideration.
India, China among countries facing tariff risk
The bipartisan bill gives the US president the power to impose tariffs on the world’s top five purchasers of Russian oil or natural gas.
India and China are among the countries that could face the proposed tariff measures. Azerbaijan, Hungary and Slovakia are also currently listed among the major importers of Russian energy.
The legislation comes as Washington continues to pressure countries that maintain significant energy ties with Moscow despite Russia’s ongoing war in Ukraine.
What does the Russia sanctions bill propose?
The proposed legislation expands the scope of US sanctions against Russia and those involved in its energy sector.
If enacted, the bill would allow the US president to impose tariffs of up to 100% on imports from countries that continue purchasing Russian oil or natural gas at significant levels.
The legislation also includes sanctions targeting Russian political and military leaders, financial institutions and energy projects.
Another provision seeks to target older or reflagged oil tankers that Russia allegedly uses to bypass existing sanctions and maintain its energy revenues.
House vote still pending
The Russia sanctions bill will now go to the US House of Representatives. The House is scheduled to reconvene on August 31.
The legislation would need approval from the House before it can move to the next stage.
The bill also gives the White House the option to waive sanctions or restrictions if the president certifies to Congress that doing so is in the US national interest.
Russia sanctions could affect India’s energy trade
India is among the world’s major importers of Russian oil. New US tariff measures could therefore have implications for India’s energy trade if the legislation becomes law and Washington decides to use the proposed powers.
India has continued to defend its energy purchases based on national interests and energy security.
The legislation also contains an exception for countries that import less than 15% of their natural gas from Russia and are taking steps to reduce those imports.
Iran sanctions extension included
The bill goes beyond Russia-related measures.
It also proposes extending the Iran Sanctions Act of 1996 until 2031. The law imposes penalties on companies that invest in Iran’s energy sector.
The Senate vote marks another significant step in the US effort to increase economic pressure on Russia over the war in Ukraine.
