US House Advances Russia Sanctions Bill That Could Bring 100% Tariffs on Major Oil Buyers Including India

Generic user silhouette icon 5paisa Capital Ltd - 0 min read

Last Updated: 16th September 2026 - 03:03 pm

A US bill that could expose India and other major buyers of Russian oil and gas to tariffs of up to 100% has moved a step closer to a vote in the House of Representatives. 

The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 cleared a procedural hurdle in the House on Tuesday evening. The resolution advancing the sanctions bill, along with several other pieces of legislation, passed 214-211 after two Democratic lawmakers joined Republicans in voting in favour. 

A final House vote on the bill is expected on Wednesday. 

The legislation would authorise US President Donald Trump to impose tariffs of 100% on major countries continuing to purchase Russian oil and gas. India and China are among the countries that could come within its scope because of their position among Russia’s largest energy buyers. 

The tariff, however, has not been imposed through this legislation. The measure still has to clear the House before it can be sent to the President for signature. 

Senate has already cleared the legislation 

The bill has already passed through the US Senate, where it secured an 86-11 majority last month. 

The Senate version does not specifically name India, China or other Russian trading partners. Instead, it refers to the five largest importers of Russian oil and gas by volume. 

Beyond possible tariffs on countries buying Russian energy, the legislation seeks wider sanctions against Russia. Its scope includes Russian leadership and the country’s energy sector, along with vessels described as part of a “shadow fleet” used to move Russian oil despite existing sanctions. 

The measure would also extend existing sanctions on Iran. 

Russia’s oil trade at centre of the measure 

The legislation is built around Washington’s position that revenue from Russian crude exports is helping finance the war in Ukraine. 

Its proposed secondary measures would allow the US administration to put economic pressure not only on Russia but also on major countries continuing to trade in Russian energy. 

That is what brings India and China into the picture. Both are identified in the report among Russia’s leading oil-trading partners and could therefore face the proposed tariff authority if the legislation becomes law and the US President chooses to use it. 

House vote comes before extended recess 

The timing of the House proceedings adds another layer to the bill’s progress. 

The House is scheduled to begin an early recess on Thursday and is not expected to reconvene until November 9, following the US midterm elections. A final vote on the sanctions measure is expected before that break. 

The vote is also taking place while pro-Ukraine groups are lobbying US lawmakers for continued backing for Kyiv. The Ukraine Action Summit, organised by the American Coalition for Ukraine, is underway in Washington as part of those efforts. 

For now, the legislation remains unfinished. The procedural vote has allowed it to advance, while the next immediate step is the final House vote. Only after House approval could the measure proceed to the President for signature. 

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advanced Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
OR
hero_form

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form