New Tariff Bill Aims to Target Nations Buying Russian Oil and Gas
A new bill, backed by the late Senator Lindsey Graham, seeks to impose significant tariffs on countries that buy Russian energy products. The bill, called the Sanctioning Russia Act of 2026, was introduced by a bipartisan group of lawmakers and aims to restrict purchases of Russian crude oil and natural gas.
The legislation has quickly gained support, attracting over twenty co-sponsors from both political parties. Its main goal is to cut off essential funding for Russia’s military operations in Ukraine by limiting oil sales. Notably, the bill’s draft was finalized just before Graham’s recent visit to Ukraine to meet with President Volodymyr Zelenskyy.
If the bill becomes law, the biggest buyers of Russian oil—China, India, Slovakia, Hungary, and Azerbaijan—would face tariffs of up to 100%. Similarly, the largest purchasers of Russian natural gas, including China, France, Belgium, Japan, and Hungary, would also be affected. Countries that buy less than 15% of Russia’s natural gas exports would be exempt from these tariffs.
Once enacted, the bill would also initiate a 180-day review process, allowing lawmakers to lift the tariffs if the countries begin to diversify their energy sources away from Russia.
In addition to imposing tariffs, the bill would enforce mandatory sanctions against high-ranking Russian officials, banks, and businesses involved in the energy sector. This signals a broader effort to restrict U.S. dealings with Russia’s government and its energy industry.
During a press conference, Senator Richard Blumenthal emphasized the importance of sanctions in the conflict, stating that they are crucial for choking off Putin’s economy and targeting countries that continue to engage with Russia.
Blumenthal clarified that while the bill is being referred to as a tariff initiative, it effectively imposes severe sanctions on vast areas of the Russian economy. He stressed that the proposed tariffs are specifically aimed at the largest buyers of Russian oil and gas, with carefully defined waiver options.
There’s a strong push among lawmakers to pass this bill swiftly after prolonged negotiations. President Donald Trump expressed his support on Monday, stating he would sign the bill into law once it clears Congress.
This is not the first time tariffs have been used to influence Russia’s actions. Last August, India faced a 25% tariff on top of existing duties related to Russian oil purchases, bringing its total tariff rate to 50%. However, those oil-related tariffs were lifted earlier this year ahead of legal challenges to previous tariff policies.
