Trump signs Russia sanctions Bill into law

• US President Donald Trump signed the Sanctioning Russia and Iran Act on September 18.

• It seeks to impose steep tariffs on Russia and its top energy buyers such as China and India.

• The ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026’ authorises and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran.

• The House of Representatives passed the Bill in a 262-159 vote on September 16. 

• The Bill was named the ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026’, to honour the South Carolina Republican who died in July.

• The legislation targets Russia’s energy and defence industries, as well as its “shadow fleet” of tankers that evade existing sanctions, in order to deprive Moscow of funds used to pay for its war with Ukraine.

• The Act also authorises President Trump to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, including China and India.

• The law gives Trump wide discretion over implementation, including which countries face tariffs, the tariff rates imposed, and whether sanctions provisions are waived.

• The law comes into effect within 30 days of signing by the President and requires him to impose duties of up to 100 per cent on goods imported from countries that are the top five purchasers of Russian crude oil or natural gas by total volume during the 12 months preceding enactment.

• A country is exempt from the gas-related duties if its Russian gas imports accounted for less than 15 per cent of Russia’s total exports during the applicable period and it has taken “significant steps” to reduce those imports.

How India responded to the move?

• Russia has been a leading source for India’s energy security requirements. India’s procurement of Russian crude oil has gone up significantly in the last few years.

• The Ministry of External Affairs said that the country will take all necessary steps to protect its economic interests and ensure energy security for the nation.

• This MEA said the issue has been discussed at high levels in recent months with various US interlocutors. 

• Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side.

• The Indian side has also made clear to the US side its determination to take all necessary measures to protect the country’s trade and economic interests.

• The government will work closely with Indian trade and industry bodies to deal with the implications of these developments.