US lowers 500% Russian oil tariff threat to 100%; relief for India, China

US lawmakers have introduced a revised version of a bipartisan Russia sanctions bill that significantly lowers the proposed tariffs on countries importing Russian energy, including India and China. The legislation, originally introduced by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, now authorises US President Donald Trump to impose tariffs of up to 100 per cent, instead of the earlier proposal of 500 per cent.

The bill aims to increase economic pressure on Moscow by sanctioning Russian officials and discouraging countries from relying on Russian oil and gas. Lawmakers believe the move could push Russia towards ending its war in Ukraine.

Under the revised proposal, the maximum tariff on major buyers of Russian energy has been capped at 100 per cent. It also provides exemptions for countries importing less than 15 per cent of Russia’s natural gas exports, provided they are taking meaningful steps to reduce those imports. This could benefit countries such as Japan, France, Hungary and Belgium.

The legislation further targets Russia’s shadow fleet of oil tankers, key financial institutions including the Russian central bank, and major state-backed energy projects such as Yamal LNG and Arctic LNG. It also gives the US president the authority to waive sanctions if doing so is deemed in the national interest.

According to Senate aides, the bill was softened after months of negotiations to secure Trump’s support. Lawmakers say the revised version has broad bipartisan backing and stands a better chance of being passed.

Trump has indicated that sanctions targeting Iran and Hezbollah could also be added to the legislation, calling it a potentially significant measure. He expressed confidence that the bill would eventually become law, describing it as a cause strongly championed by the late Senator Lindsey Graham.

However, Senator Richard Blumenthal urged lawmakers to avoid expanding the scope of the bill, arguing that it should move forward in its current form. Senate aides said the legislation already includes provisions allowing sanctions on countries, including Iran, that support Russia’s defence industry.