US House Clears Russia Sanctions Bill, Opening Door to Higher Tariffs on Major Energy Buyers Including India

The US House of Representatives has passed a wide-ranging sanctions bill aimed at Russia, moving legislation that could expose major buyers of Russian energy, including India, to tariffs of up to 100%. 

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The House approved the measure by 262 votes to 159 on Wednesday. Having already cleared the Senate, the bill will now go to US President Donald Trump for his signature. 

Called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the legislation targets Russian officials, banks and the network of tankers used to transport the country’s energy exports. It also gives the US administration authority to impose tariffs of up to 100% on goods from the five largest importers of Russian oil or natural gas. 

India is among the countries that could come within the scope of this provision because of its purchases of Russian energy. China, Slovakia, Hungary and Azerbaijan are also likely to be affected. 

For India, the immediate development is not the imposition of a new 100% tariff. Instead, the legislation creates a route through which Washington could apply tariffs of up to that level over continued purchases of Russian oil and gas. 

There are exemptions built into the measure. Countries importing less than 15% of Russia’s natural gas exports may be exempt if they have also taken significant steps to reduce those purchases. The bill also provides substantial exemptions for European allies that have been cutting their reliance on Russian energy. 

The tariff provision forms part of a broader attempt to reduce the money flowing into Russia through energy sales. Supporters of the legislation see pressure on large energy buyers as another way of limiting the resources available to Moscow during the war in Ukraine. 

However, the bill came close to failing last week when a procedural motion to advance the bill won narrowly by 214 to 211 in the House. In the second voting, a total of 262 voted in favour of the bill while 159 voted against it. 

Previously, the Senate has passed the legislation by a wide majority making the only remaining step before signing into law for the bill presidential approval. 

The bill is an indication of the divide in Washington as to the level of tariff authority the president should have. While most people agreed on the actions that should be taken on Russia, some Democrats were worried about the increased powers that might one day be used against US allies. 

In the second vote, 58 Democrats voted in favour of the bill while 152 voted against it. In addition, 203 Republicans voted in favour of the bill while 7 voted against it. 

For India, the question now becomes how the tariff provision will be applied in case President Trump passes the bill. The bill provides tariffs of 100 per cent on the major Russian energy consumers. However, it will depend on further steps taken by the US government.