India, China get relief as US cuts proposed tariffs on Russian oil buyers from 500 pc to 100 pc

An updated version of the Russia Sanctions bill, first introduced by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, has been introduced by US lawmakers, bringing down the earlier proposed tariffs on countries, including India and China, importing energy from Moscow from 500 per cent to 100 per cent. The bill will authorize US President Donald Trump to impose the tariffs.

The proposed legislation, according to US lawmakers, would increase pressure on the Russian economy, forcing Moscow to end its ongoing invasion of Ukraine, which has reportedly killed about 2 million troops and caused damages worth USD 200 billion in Kyiv, reported NDTV.

Tariffs reduced to 100 per cent

While China, India, Slovakia, Hungary, and Azerbaijan are the top five importers of Russian crude oil, the top importers of natural gas from Moscow are China, France, Japan, Hungary, and Belgium.

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As per the updated bill, there is an exception for countries whose imports of Russian gas are less than 15 per cent of Moscow’s gas imports and those that are taking substantial steps to reduce the imports. Countries like Japan, France, Hungary, and Belgium could be exempted under this clause.

Exemptions built into bill

The revised legislation also targets Russia's shadow fleet of oil tankers operating outside Western maritime services, while expanding sanctions to include Russian financial institutions, including the Central Bank of the Russian Federation. Major state-backed energy projects such as Yamal LNG and Arctic LNG 1, 2 and 3 have also been brought under the proposed restrictions.

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The updated bill further allows US President Donald Trump to waive the sanctions if he determines that doing so is in the national interest of the United States.

Senate support grows

Senate aides said the legislation had secured 26 co-sponsors and expected more lawmakers to join within hours, expressing confidence about its prospects. "We're pretty confident on its path," one aide said as quoted by Reuters.

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The measure differs from the original bill introduced in April 2025 by Republican Senator Lindsey Graham of South Carolina and Democratic Senator Richard Blumenthal of Connecticut. A Senate aide told Reuters that several provisions were softened after months of negotiations aimed at securing Trump's backing.

"This is the only product that currently has buy-in from everybody and is likely the only product that is going to move forward and put pressure on Russia the way we would all like to get," the aide, who spoke on condition of anonymity, said.

Trump backs legislation

Speaking at the White House, Trump said sanctions targeting Iran and Hezbollah could also be added to the legislation, calling it a "very big thing." He also expressed confidence that the bill would become law.

"This is in honor of Lindsey. This was his thing. He wanted this more than anything. You know how he felt, and there's a good chance that it gets done," Trump said.

Blumenthal, however, urged lawmakers to keep the bill unchanged, while a second Senate aide told Reuters it already authorises sanctions and tariffs on countries, including Iran, that support Russia's defence industrial base.