US Senate revises Russia sanctions bill to soften tariffs on India and China

US senators have introduced a revised Russia sanctions bill that would ease proposed tariff measures aimed at major buyers of Russian oil and gas, while keeping broader pressure on Moscow. The legislation was first tabled in April 2025 and has now been updated as lawmakers seek to move it forward with bipartisan backing. It comes as the United States continues to weigh how to punish Russia over its energy revenues without sharply widening the economic impact on other countries.

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Under the revised proposal, the maximum tariff on the five largest buyers of Russian oil and natural gas would be cut to 100%, down from the 500% level originally envisaged. The bill also creates an exemption for countries that import less than 15% of Russia's natural gas exports and are taking substantial steps to reduce those imports. Senate aides said the five largest purchasers of Russian crude are China, India, Slovakia, Hungary and Azerbaijan, while the biggest importers of Russian natural gas are China, France, Japan, Hungary and Belgium.

The draft still targets a wider set of Russian interests. It would sanction Russian officials, the so-called shadow fleet of tankers operating outside Western maritime services, Russian financial institutions including the Central Bank of the Russian Federation, and major state-backed energy projects such as Yamal LNG and Arctic LNG 1, 2 and 3. The updated text also gives President Donald Trump authority to waive sanctions if he determines that doing so is in the national interest.

Senate aides said the measure has 26 co-sponsors and could attract more support. The changes matter because they show an effort to preserve pressure on Moscow while reducing the risk of collateral damage for allies and other energy importers. Countries such as Japan, France, Hungary and Belgium could benefit from the exemption if they meet the conditions set out in the bill.

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For India and China, which are among the largest buyers of Russian energy, the revised tariff ceiling still signals that Washington is prepared to use trade tools as part of its sanctions strategy. The bill was originally pushed by the late Senator Lindsey Graham and Democratic Senator Richard Blumenthal. Graham had said during a visit to Ukraine a day earlier that he had reached an agreement with Trump to move the bill forward.

His death on Saturday adds a new political dimension to the legislation, although Senate aides said they still expect the measure to advance and believe it has a clear path toward passage. What remains unclear is how quickly the Senate will act and whether the revised tariff structure will survive further negotiations. It is also not yet clear how the White House would use the waiver power if the bill becomes law.

The next stage will be whether additional co-sponsors join and whether lawmakers settle the final scope of the sanctions before a vote.

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