Washington, DC (Economy India): The United States may impose punitive tariffs of up to 500% on countries purchasing Russian oil, including India, China, and Brazil, under a proposed sanctions law targeting Moscow’s energy revenues, according to media reports.
US President Donald Trump has approved the introduction of a sweeping sanctions bill against Russia, paving the way for its presentation in Parliament as early as next week, the Economic Times reported. The legislation aims to tighten economic pressure on Russia amid the ongoing war in Ukraine.
Trump Clears ‘Sanctioning Russia Act 2025’
Republican Senator Lindsey Graham said he discussed the proposed legislation with President Trump at the White House on Wednesday, during which the President gave his consent for the bill to be brought before lawmakers.
The proposed law, titled the Sanctioning Russia Act (SRA) 2025, has been under preparation for several months and is designed to significantly escalate economic sanctions against Moscow and its global trade partners.
According to Graham, the bill could be put to a vote in the US Congress next week.
Secondary Sanctions on Countries Buying Russian Oil
A key provision of the SRA 2025 is the imposition of secondary sanctions, including tariffs of up to 500%, on countries that continue to purchase Russian crude oil during the Ukraine conflict.
Washington argues that revenues from discounted Russian oil sales are helping finance Moscow’s war effort, and that pressure must extend beyond Russia to countries and entities that facilitate trade through alternative routes.
If enacted, the law would significantly raise the cost of exporting goods to the US for nations found to be in violation.
Broad Bipartisan Support in US Congress
The sanctions bill has received strong bipartisan backing in the US Senate.
- The bill has been jointly introduced by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal
- It currently has 85 co-sponsors, representing over 80% of the US Senate
- Support spans both Republican and Democratic lawmakers, reflecting rare bipartisan consensus on Russia-related sanctions
Such broad backing increases the likelihood of the bill moving forward despite potential diplomatic concerns.
What Does the Sanctioning Russia Act 2025 Propose?
Under the proposed legislation, the US would impose severe restrictions on Russia’s:
- Energy sector (oil and gas companies)
- Banking system
- Defence industry
- Global financial and logistics networks linked to sanctioned entities
The bill also authorises the US government to impose penalties on third countries, banks, and companies that help Russia bypass sanctions.
In addition, the legislation proposes a legal framework to redirect frozen Russian assets held in the US and allied countries towards Ukraine’s reconstruction.
Making Sanctions Legally Binding
One of the most significant aspects of the bill is its attempt to convert existing executive orders imposing sanctions on Russia into binding law.
If passed:
- Future US presidents would not be able to revoke or dilute sanctions unilaterally
- Any exemption or rollback would require Congressional approval
- This would lock in long-term pressure on Russia irrespective of changes in US leadership
However, the bill also includes a presidential waiver, granting the President limited discretion to provide exemptions under specific circumstances.
India Already Faces 25% Additional Tariffs
India is already subject to a 25% additional tariff imposed by the US due to its purchase of Russian crude oil. Combined with earlier duties, India currently faces total tariffs of up to 50% on certain exports to the US.
If the SRA 2025 is enacted in its current form, India could face significantly higher trade barriers, potentially impacting exports across multiple sectors.
India and the US are currently engaged in discussions to resolve ongoing tariff disputes as part of broader trade deal negotiations.
India Seeks Tariff Relief
India has reportedly requested:
- A reduction of total tariffs from 50% to 15%
- Complete removal of the additional 25% penalty linked to Russian oil imports
Both sides are expected to continue negotiations, with hopes of reaching a resolution in the coming months.
Indian Envoy Raised Tariff Issue with US Lawmakers
Senator Lindsey Graham said on January 5 that he had visited the residence of Indian Ambassador to the US Vinay Mohan Kwatra about a month earlier.
During the meeting, discussions reportedly focused on:
- India’s dependence on Russian crude
- The possibility of reducing oil purchases
- A request from India to convey to President Trump the appeal to remove the extra 25% tariff
India Cuts Russian Oil Imports After Four Years
India has begun reducing its dependence on Russian crude for the first time since 2021.
According to a Reuters report:
- Russian oil imports averaged 1.77 million barrels per day in November
- This declined to around 1.2 million barrels per day in December
- Imports could fall below 1 million barrels per day in the coming months
The decline follows US sanctions imposed in November on major Russian oil companies Rosneft and Lukoil, which disrupted supply chains and payments.
Implications for India–US Trade Relations
While India has maintained that its energy procurement decisions are driven by price stability and domestic demand, the proposed US sanctions could complicate bilateral trade ties at a sensitive time.
With trade negotiations ongoing and geopolitical tensions high, the coming weeks will be critical in determining whether diplomatic engagement can prevent escalation into a broader trade confrontation.
If passed, the Sanctioning Russia Act 2025 would represent one of the toughest sanctions regimes imposed by the US, with far-reaching consequences not only for Russia but also for major global economies, including India.
Much will now depend on Congressional deliberations, diplomatic negotiations, and India’s evolving energy strategy.
(Economy India)
