US Senators Propose Up to 100% Tariffs on India and Four Other Nations Buying Russian Oil

A bipartisan coalition of US senators has unveiled a sanctions bill targeting nations buying Russian oil. The draft legislation proposes import duties reaching 100% on goods from India, China, Slovakia, Hungary and Azerbaijan. This move aims to choke off energy income flowing to Moscow and halt the conflict in Ukraine.

This draft modifies the Sanctioning Russia Act. That April 2025 proposal sought duties up to 500% but never reached a Senate vote. Supporters expect the revised legislation to clear Congress before August. Under the new framework, the US Trade Representative would decide the specific tariff levels for each nation.

At a Washington press conference on Tuesday, Senator Richard Blumenthal outlined the scope of the proposed legislation. "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," Blumenthal said.

India's Oil Pivot

India's purchases of Russian crude have surged primarily due to shipping disruptions in the Strait of Hormuz. This followed Iranian retaliation against US-Israeli military strikes, which choked off Gulf crude supplies that previously made up 40% of India's oil imports. This supply crisis forced refiners to turn to Russian crude as the main alternative source.

Washington itself facilitated this pivot through a series of OFAC general licences—the last of which expired on June 17—that temporarily waived sanctions on Russian oil transactions to stabilise global energy markets during the crisis.

Data from the Centre for Research on Energy and Clean Air showed Indian purchases of Russian crude surged 34% in June 2026 to hit unprecedented heights, Hindustan Times reported. These shipments reached a valuation of —4.5bn. This trade accounted for approximately 36% of the total crude export earnings of Russia. The surge positioned India as the second-biggest importer of Russian oil, trailing only China.

Bilateral Trade Friction

The proposed legislation coincides with ongoing trade negotiations between New Delhi and Washington. A February agreement had established an 18% tariff on Indian exports. However, that deal collapsed after the Supreme Court ruled later that month that President Donald Trump exceeded his authority by using emergency powers under the International Emergency Economic Powers Act to levy duties.

Indian goods currently enter the US under a flat 15% tariff imposed under Section 122 of the Trade Act of 1974. This temporary authority is due to expire on July 24, with the broader bilateral trade agreement between the two countries still unfinished.

Bill Mechanics and Exceptions

Exemptions exist for nations buying Russian natural gas. To qualify, their purchases must remain below 15% of Moscow's total gas exports, and they must actively cut back on imports. The draft legislation also introduces wider penalties targeting Russia's financial, defence, industrial and energy sectors.

Blumenthal said the USTR would set tariff levels appropriate to discourage purchases by the five targeted nations.

"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 said.

Legislative History and Tribute

Democratic Senator Jeanne Shaheen, who is also backing the bill, said it would have "much narrower" tariff provisions than the original Sanctioning Russia Act, which stalled in the Senate owing to concerns over its extreme provisions and a lack of support from President Donald Trump.

The original bill was spearheaded by Senator Lindsey Graham, who died suddenly on Saturday after an aortic dissection. Legislators at Tuesday's press conference paid tribute to Graham's role in advancing the legislation.

Trump said the bill had been brought forward in Graham's honour and hinted that sanctions against Iran could also be included.

Opposition and Backdoor Concerns

However, the bill has drawn sharp criticism from some legislators who argue it gives excessive tariff authority to the president. Congressman Gregory Meeks, the ranking Democratic member on the House Foreign Affairs Committee, said the bill "missed the moment".

"This is not so much a sanctions bill as it is a massive backdoor authority for President Trump to impose more tariffs, including on our European allies, that hurt American families. The sanctions the bill does contain are entirely at Donald Trump’s discretion, and he has made clear repeatedly that he would rather waive sanctions on Russia than impose new ones," Meeks said in a statement.

Meeks urged his colleagues to instead build on the Ukraine Support Act, which passed the House in June on a bipartisan basis.

"What I won't support is handing President Trump a Trojan horse for tariff authorities he has repeatedly abused. That does nothing to help Ukrainians under Russian attack, and nothing to help the American families who pay the price for Trump’s tariffs," he said.