500% US tariff on Russian oil slashed to 100% in huge relief for India, China
2 min readNew DelhiUpdated: Jul 15, 2026 09:58 AM IST
US senators introduced a revised Russia sanctions bill that eases the proposed tariff provisions targeting China, India and other major importers of Russian oil and gas, while retaining tough measures aimed at increasing pressure on Moscow, Reuters reported.
Originally pushed by the late Senator Lindsey Graham, the bipartisan legislation seeks to impose sanctions on Russian officials and use tariffs to encourage countries heavily reliant on Russian energy to reduce their dependence.
The revised proposal lowers the maximum tariff on the five largest buyers of Russian oil and natural gas to 100 per cent, a significant reduction from the blanket 500 per cent tariff envisaged in the original bill.
It also creates an exemption for countries that import less than 15 per cent of Russia’s natural gas exports and are taking substantial steps to reduce those imports. The provision could benefit Japan, France, Hungary and Belgium.
Beyond tariffs, the bill targets Russia’s “shadow fleet” of oil tankers that operate outside Western maritime services, Russian financial institutions including the Central Bank of the Russian Federation, and major state-backed energy projects such as Yamal LNG and Arctic LNG 1, 2 and 3.
The updated legislation also gives US President Donald Trump the authority to waive sanctions if he determines doing so is in the country’s national interest.
According to Senate aides, the five largest purchasers of Russian crude are China, India, Slovakia, Hungary and Azerbaijan, while the biggest importers of Russian natural gas are China, France, Japan, Hungary and Belgium.
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Graham, who died suddenly on Saturday, had announced during a visit to Ukraine a day earlier that he had reached an agreement with Trump to move the bill forward, more than a year after it was first introduced.
The measure, first tabled in April 2025 by Graham, a Republican from South Carolina, and Democratic Senator Richard Blumenthal of Connecticut, has bipartisan backing. Senate aides said it currently has 26 co-sponsors, with more expected to join soon, expressing confidence that the legislation has a clear path toward passage.
