Kathmandu— The US Senate passed a bipartisan bill on Friday that grants the president authority to levy tariffs of up to 100% on goods from countries that continue to import Russian oil and gas, a move intended to disrupt the financial flows supporting Moscow's military operations in Ukraine. The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 passed with an overwhelming 86-11 vote, targeting nations that maintain major energy trade ties with Russia and extending sanctions against Iran.

Targeting Energy Trade Ties

The legislation empowers the US president to impose discretionary tariffs of up to 100% on imports from the world's top five purchasers of Russian crude oil or natural gas. This measure presents energy-importing nations with a choice between continuing to purchase discounted Russian energy or retaining access to the lucrative US market.

Under the new provisions, countries may qualify for an exemption if they account for less than 15% of Russia's total natural gas exports and are actively taking steps to reduce their reliance on Russian energy. Additionally, the president retains full authority to waive sanctions or tariff restrictions if the administration determines such an action aligns with US national interest.

Impact on Global Trade and India

India remains one of the largest buyers of Russian crude globally, alongside China. Since the outbreak of the Russia-Ukraine conflict in 2022, India has expanded its procurement of discounted Russian crude to secure national energy requirements and optimize raw material costs during global market turmoil.

New Delhi has consistently maintained that its energy procurement strategy is guided strictly by national interest, energy security, and the imperative to guarantee affordable and reliable energy for its citizens. If the 100% tariff is applied, it could significantly raise import costs for US buyers across sectors including engineering goods, pharmaceuticals, chemicals, textiles, and auto components.

Expanded Sanctions and Legislative Debate

Beyond targeting energy buyers, the bill outlines fresh sanctions against Russian President Vladimir Putin, senior political and military officials, financial institutions, and energy developments linked to Russia's war effort. It also extends sanctions to older or reflagged oil tankers allegedly used by Russia to circumvent global restrictions.

The package also includes strategic measures targeting Iran by extending the Iran Sanctions Act of 1996 through 2031. While the bill secured strong support, some lawmakers expressed reservations regarding the expansion of presidential tariff authority. An amendment proposed by Republican Senator Rand Paul and Senator Wyden to remove the new tariff authority was defeated, though Senator Raphael Warnock noted he received a written commitment from the administration regarding operational safeguards.

The legislation now moves to the US House of Representatives for consideration when lawmakers return later this month, where House approval is required before the bill can be sent to the president for signature.

(With inputs from ANI)

Originally published on abcnews.com.np.