What began as a US effort to draw a line on Russia's wartime oil revenues could have consequences far beyond Moscow and beyond its borders. The oil buyers from Russia, including India, can feel the impact. The move to impose tariffs of up to 100% would affect the trade relations between the US and India.
The stated aim of the measure is to reduce the revenue Russia earns from energy exports, which Washington argues helps finance its war in Ukraine. But the proposed tariffs could also affect countries such as India, potentially putting pressure on their trade with the United States.
What is the Graham bill?
The Sanctioning Russia Act of 2025 is a proposed bipartisan bill introduced in the US Congress that gives the US President the option to impose extensive new sanctions on Russia and countries that purchase Russian energy and other critical exports in response to the continuing Russian invasion of Ukraine and Russia's refusal to engage in peace negotiations.
The House is considering the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, a sanctions package aimed primarily at increasing economic pressure on Russia over its war in Ukraine, while also extending sanctions relating to Iran. An amendment introduced by Democratic Congressman Steny Hoyer proposes to explicitly name 10 countries as eligible for duties of up to 100 per cent under the bill's secondary tariff provisions.
The countries are China, India, Turkiye, Azerbaijan, Hungary, the Slovak Republic, the United Arab Emirates, Singapore, Kazakhstan and the Kyrgyz Republic.
The legislation has exposed divisions among Democrats, including lawmakers who backed Ukraine but opposed expanding Trump’s authority to impose tariffs. The Senate version does not specifically name Russia’s trading partners; it refers to the five largest importers of Russian oil and gas by volume.
The legislation in process
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 cleared a key procedural hurdle in the House on Tuesday evening, with two Democrats joining Republicans to approve the measure, taking the vote in favour to 214:211, which was a procedural vote. The vote came despite opposition from several senior Democrats who raised concerns over the extent of the President’s powers over tariffs under the legislation.
There are several steps between the legislation and an actual tariff:
- 1 House advances bill.
- House final vote.
- Legislation must become law
- Presidential authority exists
- Administration decides whether and how to use that authority.
The bill would provide authority to impose tariffs of up to 100%; it does not automatically impose that rate on India simply because Congress passes the legislation.
Disputes within the houses
But there is a dispute over how those countries should be identified. Steny H. Hoyer has urged the House to adopt an amendment that would explicitly name the countries subject to the tariffs, including India. He argued that relying on an import-volume formula could leave room for the administration to manipulate data or expand the list of targeted countries.
Hoyer said his amendment would name 10 countries and require the president to return to Congress for approval before adding another country to the tariff list. His argument is that Congress, rather than the White House alone, should retain control over the scope of the secondary tariffs.
Hoyer also framed the legislation as a measure of congressional support for Ukraine, warning: “If we do not pass this bill, there will be great joy in the Kremlin and great devastation in Kyiv.”
Hoyer supports retaining the tariff mechanism itself, despite saying he has opposed Trump's tariff policies, arguing that the threat of duties of up to 100% is intended to deter countries from continuing to purchase Russian energy and thereby supporting Moscow's war effort.
Another amendment, moved by Democratic Congressman Gregory Meeks and several co-sponsors, seeks to remove the provision granting the President broad secondary tariff authority.
The House has only a limited number of working days remaining before an early recess ahead of the November 3 midterm elections. The final provisions concerning India will depend on the amendments adopted during the House process and subsequent legislative action.
Russia on the tariff moves
“We can and will supply the domestic market, and we are already doing so. But when it comes to the global market, the issue is not production. The issue is ensuring unobstructed access for these oil products to global markets. What is needed here is safe commercial shipping and navigation for oil tankers."
So far, the Kyiv regime has shown no inclination to guarantee such security”, Kremlin spokesperson Dimitry Peskov said. He also added that they are open to discussion with the US. He also argued that the sanctions must be lifted and the restrictions on energy supplies and global markets must be removed.
Where does Ukraine stand
The underlying argument is that Russia's energy exports provide revenue that helps finance its war in Ukraine. The legislation therefore targets not only Russian officials and parts of Russia's energy sector but also the network of vessels known as the ‘shadow fleet,’ which is used to transport Russian oil while circumventing sanctions.
The proposed secondary tariffs are intended to put pressure on major purchasers of Russian energy by making continued purchases potentially more expensive through access to the US market.
Ukraine has been actively lobbying Washington to advance the legislation. Ukrainian sanctions commissioner Vladyslav Vlasiuk travelled to Washington to urge House lawmakers to support the bill, which Kyiv views as an important demonstration of continued US support for Ukraine. Ukrainian President Zelenskyy is also supporting the US move to impose tariffs. He wants the US to increase the economic pressure on Russia and lawmakers to pass the sanctions bills.
What does the bill mean for India?
Meanwhile, during the BRICS meeting, India's MEA spokesperson Randhir Jaiswal said that India and Russia have a longstanding partnership in the energy sector, including nuclear energy, and highlighted the Kudankulam nuclear power project as a successful example of bilateral cooperation.
At the same time, India is among the major buyers of Russian crude and has significantly increased its purchases since Russia invaded Ukraine, making it a potential target of the proposed US measures.
For India, the issue sits between two important economic relationships: its energy ties with Russia and its trade relationship with the United States. The issue also comes as Prime Minister Narendra Modi and Russian President Vladimir Putin have discussed strengthening bilateral economic ties, with energy remaining an important part of the relationship.
At the current stage, India is not facing a 100 per cent tariff under this legislation. If the bill becomes law and India falls within the final group of countries covered by the secondary tariff provisions, the US could impose additional duties on imports from India because it purchases Russian energy.
That could put pressure on Indian exporters seeking access to the US market. The potential impact would depend on which products were covered, the rate ultimately imposed, and whether the administration exercised any waiver or adjustment authority provided under the legislation.
The outcome could therefore have implications for both India's energy relationship with Russia and its trade relationship with the United States.
(Compiled by Mariya Babu)
