US President Donald Trump has signed into law a sweeping Russia sanctions bill that gives his administration the power to impose tariffs of up to 100 per cent on countries purchasing Russian oil and gas, potentially putting major buyers such as India and China under threat.
The legislation, officially titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, was signed by Trump on Friday after the US House of Representatives passed it 262-159, two days earlier. The Senate had already approved the legislation.
The law is aimed at cutting off financial resources supporting Russia's war in Ukraine and targets Russian officials, banks, energy interests, defence-related entities and the country's so-called "shadow fleet" of oil tankers accused of helping Moscow evade sanctions.
A key provision gives Trump authority to impose tariffs of up to 100 per cent on goods imported from countries that fall within specified categories of major Russian oil and gas purchasers. The legislation does not automatically impose a 100 per cent tariff on India or China, but creates a legal pathway for such duties to be introduced.
Under the law, tariffs can target countries among the top five purchasers of Russian crude oil or natural gas by volume during the relevant 12-month period. The legislation also covers countries that knowingly make new purchases of Russian oil or gas after the law takes effect or are among the leading countries helping Russia evade sanctions.
India and China are among the major buyers of Russian crude, making them potential targets under the new provisions. However, the legislation leaves significant discretion with the Trump administration over which countries will ultimately be targeted and at what rate.
The law is expected to take effect within 30 days of Trump's signing. It also allows the President to waive tariffs or sanctions on national security grounds.
India has previously said that its oil sourcing decisions are driven by energy security and market conditions. The government has also warned that measures targeting Russian oil purchases could have implications not only for India-US relations but also for global energy markets.
The legislation comes as the Trump administration continues to press Russia over the Ukraine war, while seeking to increase economic pressure on Moscow and countries that continue to purchase Russian energy.
