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 the world's top five purchasers of Russian crude or natural gas to force a choice between discounted Russian energy and access to the US market.

Targeting Energy Trade Ties

The legislation aims to escalate economic pressure on Russia and Iran by targeting nations that maintain major energy trade ties with Moscow. Under the new provisions, the US president would be granted discretionary authority to impose tariffs of up to 100% on imports from the top five buyers of Russian crude oil or natural gas.

Beyond targeting foreign 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. The measure also extends sanctions to older and reflagged oil tankers allegedly used by Russia to circumvent global restrictions and maintain energy export revenues.

Impact on India and Global Trade

India remains one of the largest global buyers of Russian crude, 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 amid 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.

Legislative Debate and Safeguards

While the bill secured strong Senate support, some lawmakers expressed reservations regarding the expansion of presidential tariff authority. An amendment proposed by Republican Senator Rand Paul and Senator Wyden seeking to remove the new tariff authority was defeated by the Senate.

Senator Raphael Warnock, who had raised concerns regarding the tariff framework, confirmed receiving a written commitment from the Trump administration detailing operational safeguards. The bill also includes exemptions for countries that account for less than 15% of Russia's total natural gas exports and are actively working to reduce their reliance on Russian energy.

Strategic Pressure on Iran

The bipartisan package also incorporates strategic measures targeting Iran by extending the Iran Sanctions Act of 1996 through 2031. This extension is designed to sustain pressure on Tehran's energy sector, combining regulatory measures against two countries that Washington views as major geopolitical adversaries.

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

(With inputs from (manual retry))

Originally published on abcnews.com.np.