The US Senate is set to vote next week on the 'Sanctioning Russia Act 2025', which could impose up to 500% tariffs on countries buying energy from Russia, including India. The bill aims to increase economic pressure on Russia amid the Ukraine war. India, reliant on discounted Russian crude oil, faces potential trade disruptions.
Washington, January 8, 2026. Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal have drafted the bipartisan 'Sanctioning Russia Act 2025' after a meeting with President Donald Trump, securing White House approval. The bill seeks to weaken Russia's war economy in response to its invasion of Ukraine.
Under the provisions, if Russia fails to cooperate in peace talks or violates agreements, the US can impose up to 500% tariffs on imports from countries purchasing Russian oil, gas, uranium, or other energy products. Senator Graham believes this will deliver a major blow to Russia. President Trump had previously indicated that tariffs could rise if countries like India continue buying Russian oil.
For India, which has relied on discounted Russian crude since the Ukraine war, the bill poses risks to US-India trade ties, potentially destabilizing global energy markets. Analysts note it could pressure Russia economically but strain relations with allies.
Recent trade data shows India's exports remaining resilient amid existing US tariffs. From September to November 2025, telecom exports, especially smartphones, surged 237% to the US, offsetting declines in gems and jewellery by 78.5%. Overall marine product exports grew 17%, with gains to Europe and China. K. Anand Kumar, president of the Seafood Exporters Association of India (SEAI) Andhra Pradesh, said, “Shipments to the EU and China have increased over the past few months. We request the Centre to intervene and have Free Trade Agreements with other countries to help the aqua sector.” Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council, added, “The Rupee at 90 is a good instrument for Indian exporters to locate new markets. It helps push exports to various markets.”