US Senate Passes Russia Sanctions Bill; India's Exports Could Face Up To 100% Tariffs

India's exports have come under renewed focus after the US Senate passed the Lindsey O. Graham Sanctioning Russia Act, legislation that could pave the way for tariffs of up to 100% on imports into the United States from countries that continue purchasing Russian-origin crude oil or natural gas. The bill still faces further legislative and executive steps before becoming law.

The proposed legislation authorises the US President to impose tariffs of up to 100% on goods imported from countries that are among the five largest buyers of Russian crude oil or natural gas and continue making new purchases after the law takes effect. It also targets countries found to be facilitating Russian sanctions evasion.

US President Donald Trump has publicly backed the legislation in recent days. The bill passed the US Senate on Friday with bipartisan support, with only 11 senators voting against it.

India's Russian Oil Imports Hit Record High

For India, the timing is significant.

According to commodity analytics firm Kpler, India's imports of Russian crude rose to a record 2.78 million barrels per day (bpd) in July, up 1.5% from June. Russian oil accounted for more than half of India's total crude imports, reinforcing Moscow's position as New Delhi's largest supplier.

India's total crude imports stood at 4.96 million bpd during the month.

The increase in Russian purchases came as escalating geopolitical tensions in the Gulf and the Red Sea disrupted cargo flows from West Asia.

What The Bill Proposes

The proposed legislation could significantly raise the stakes for countries such as India and China, which have become the largest buyers of Russian crude since Western sanctions redirected Moscow's exports away from Europe.

Section 113 of the bill authorises duties of up to 100% on imports from countries that remain among the top five importers of Russian crude or natural gas and continue making purchases after the legislation takes effect. It also mandates a review every 180 days to reassess the list of countries covered.

However, Section 115 provides the US President with the authority to waive the sanctions if doing so is deemed to be in the national security interests of the United States.

Potential Impact On India

For India, the implications extend beyond energy security.

The United States is India's largest export market, and any punitive tariffs—if the legislation is enacted and applied—could affect sectors including engineering goods, pharmaceuticals, textiles and electronics.

The development also comes shortly after India secured relatively favourable treatment under the US Section 301 forced labour measures, with Washington imposing an additional 10% duty on Indian goods, compared with the 12.5% initially proposed for several other economies.