Washington: President Donald Trump has officially approved a new law that imposes strict sanctions on Russia, giving the U.S. government the power to apply hefty tariffs on countries that buy significant amounts of Russian oil and gas, including India.
This legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act, was signed into law on Friday, just two days after it received bipartisan support in the House of Representatives with a vote of 262-159. The Senate had already passed the bill back in August.
The new law aims to increase economic pressure on Russia due to its actions in Ukraine and targets various sectors including Russian officials, financial institutions, and energy companies. Additionally, it addresses those trying to bypass existing sanctions, including the oil tankers that operate in secrecy. One of the key features of this law is that it allows the U.S. government to impose trade penalties on other countries that continue significant energy trade with Russia. However, these tariffs are not automatic; their application will depend on how the administration decides to implement them.
The law details tariffs that could go as high as 500% on products directly from Russia. More significantly for global trade, it includes the potential for tariffs up to 100% on goods coming from countries that are the largest buyers of Russian oil and natural gas.
Since the conflict in Ukraine began, refiners in India and China have been buying large amounts of Russian crude oil, often at discounted prices, making their trade with Russia a target for U.S. sanctions.
This new law leaves foreign policy experts in both New Delhi and Beijing considering their next steps. While the law gives President Trump considerable authority over how and when to apply these penalties, the possibility of steep tariffs creates a lot of uncertainty for Indian exporters who depend on the American market.
