A revised US sanctions bill has significantly lowered the proposed tariff while keeping Moscow’s energy revenues firmly in Washington’s crosshairs
India and China have received a significant reprieve after US lawmakers revised a proposed sanctions bill targeting buyers of Russian energy, reducing the maximum tariff from a proposed 500% to 100%. The move is seen as an effort to maintain pressure on Russia while avoiding severe economic disruption for major energy-importing nations.
The updated bipartisan legislation, introduced in the US Senate, retains its focus on curbing Russia’s energy revenues but adopts a less aggressive approach towards countries importing Russian crude and natural gas. The revised draft limits tariffs to a maximum of 100% for the world’s five largest buyers of Russian oil, replacing the earlier proposal that envisioned a blanket 500% tariff.
The bill also introduces a carve-out for countries importing less than 15% of Russia’s natural gas while taking concrete steps to reduce their dependence. This exemption is expected to benefit several US allies and reflects a more calibrated approach aimed at broadening political support for the legislation.
For India, the revision removes the immediate threat of an exceptionally punitive tariff that had raised concerns over trade and energy security. New Delhi has consistently defended its purchases of Russian crude, arguing that affordable energy imports are essential for domestic economic stability and inflation management.
The legislation continues to target Russia through sanctions on its financial institutions, energy projects and shadow shipping network. It also grants the US President the authority to waive certain sanctions if doing so is deemed to be in the national interest, providing greater flexibility in implementation.
Although the tariff proposal has been softened, the bill underscores Washington’s continued intent to squeeze Moscow’s energy earnings while encouraging major importers to diversify away from Russian supplies. The legislation is still subject to congressional approval before becoming law.
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