US Congress passes bill targeting buyers of Russian energy

The US Congress on Wednesday passed a bill tightening sanctions on Russia by targeting its leading energy buyers. The House cleared the Lindsey Graham Sanctioning Russia and Iran Act of 2026 by 262-159, after the Senate approved it 86-11 last month. It authorises President Donald Trump to impose tariffs of up to 100 per cent on the five largest importers of Russian oil and gas. The bill names no countries but is expected to target China and India, days before Xi Jinping's Washington visit.

Written by AI from South China Morning Post · not yet reviewed by an editor · Published 17 Sept 2026, 4:58 am IST

Source

South China Morning Post · read the original report ↗

#us sanctions#russia oil#tariffs#india#china

Desk check · compared with the source

What the desk checked (5)

US House passed the Lindsey Graham Sanctioning Russia and Iran Act of 2026 by 262-159; Senate passed it 86-11 last month. — Specific vote figures appear in the source; attributed to the reported congressional action, no external verification possible.
The bill authorises Trump to impose up to 100 per cent tariffs on the five largest importers of Russian oil and gas. — Figure appears in source as a description of the legislation's provisions.
China and India are the intended targets, with Japan, France, Hungary and Belgium potentially exempt. — Source explicitly says buyers are not named in the bill; this is the publication's characterisation, not a statutory listing.
Democratic Representative Gregory Meeks said the bill hands Trump sweeping tariff authorities he could abuse. — Directly quoted and attributed to a named lawmaker in the source.
Xi Jinping is due in Washington next week for a summit with Trump; Bessent and He Lifeng hold final preparatory talks this weekend. — Attributed to the source and to earlier South China Morning Post reporting; forward-looking and subject to change.

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Analysts’ view opinion

AI Strategic Affairs Analyst

This bill converts energy purchases into a lever of coercive statecraft: by authorising tariffs of up to 100 per cent on the five biggest buyers of Russian oil and gas, Washington is trying to squeeze Moscow's war revenues through third countries rather than Russia itself. The absence of named targets is deliberate strategic ambiguity — it maximises negotiating leverage while leaving China and India to assume they are in the crosshairs. The timing, days before Xi Jinping's Washington summit and alongside final preparatory talks between Scott Bessent and He Lifeng, means the same instrument can read as pressure or as a bargaining chip.

Targeting buyers rather than the seller marks a shift toward secondary economic pressure, where the burden of enforcing sanctions falls on partners and rivals alike.
For India, this is a strategic dilemma rather than a purely commercial one: discounted Russian crude and a long-standing defence relationship with Moscow now sit directly against ties with Washington.
For Beijing, the bill arrives entangled with the fragile trade truce and the separate US push to cut Chinese commercial links with Iran, giving China reason to treat energy, tariffs and Iran as one negotiating package.
Because the legislation authorises but does not compel action, the real strategic variable is presidential discretion — which is precisely the point Democratic critics raised about the breadth of the tariff powers.
The Brics push for local-currency trade and payment interoperability, agreed in the New Delhi Declaration 2026, shows the structural risk: repeated use of sanctions accelerates efforts to build alternatives outside the dollar system.

What to watch — Watch whether Trump signs the bill and how quickly he moves to designate targets — and whether the Xi summit produces trade outcomes that quietly defer any use of the new authority.

The story does not establish that the bill has been signed, which countries will actually be designated, at what tariff level, or how Beijing, New Delhi or Moscow intend to respond.

Deep dive

Research brief · 8 facts · 8 dates · exam-ready

The brief

Context

The US Congress has passed the "Lindsey Graham Sanctioning Russia and Iran Act of 2026", which authorises President Donald Trump to impose tariffs of up to 100 per cent on the five largest importers of Russian oil and natural gas. The bill names no countries, but is expected to hit China and India, Moscow's leading energy buyers, while smaller buyers such as Japan, France, Hungary and Belgium may be exempted. It reaches the White House days before Chinese President Xi Jinping's bilateral summit with Trump in Washington, and amid Trump's wider search for new legal routes to levy tariffs after the Supreme Court struck down his emergency-powers tariffs in February.

Key facts

The US House of Representatives cleared the Lindsey Graham Sanctioning Russia and Iran Act of 2026 by 262-159; the Senate had passed it last month by 86-11.
The bill authorises Trump to impose tariffs of up to 100 per cent on the five largest importers of Russian oil and natural gas.
No purchasing country is named in the bill; China and India are the expected targets, while Japan, France, Hungary and Belgium may be exempted.
The legislation also adds measures on Russia's energy and defence sectors and its sanctions-evading tanker fleet, plus further sanctions on Iran.
The bill was championed by Republican Senator Lindsey Graham, who died in July.
In February the US Supreme Court ruled Trump's expansive tariffs under the International Emergency Economic Powers Act unconstitutional.
In July the administration imposed tariffs of 10 to 12.5 per cent on 60 economies, including China, Japan, South Korea, India and EU members, under Section 301 of the 1974 Trade Act over forced-labour allegations.
Trump invoked Section 338 of the Tariff Act of 1930 last month to impose 50 per cent tariffs on a range of Canadian goods after talks with Ottawa collapsed; the provision had never been used before.

Timeline

October last yearUS and China reach a fragile trade truce, which the coming summit is expected to extend.
FebruaryUS Supreme Court rules Trump's expansive IEEPA tariffs unconstitutional, pushing the administration towards the 1974 Trade Act and other statutes.
JulySenator Lindsey Graham, who championed the bill, dies; the same month tariffs of 10-12.5 per cent are imposed on 60 economies under Section 301.
Last monthSenate passes the bill 86-11; Trump invokes Section 338 of the Tariff Act of 1930 for 50 per cent tariffs on Canadian goods.
Last weekBRICS leaders adopt the New Delhi Declaration 2026 at the 18th BRICS summit, agreeing to expand trade and payments in local currencies.
TuesdayTreasury Secretary Scott Bessent tells a House Financial Services Committee hearing of 'very good private discussions' with China.
WednesdayHouse passes the bill 262-159; it goes to the White House for Trump's signature.
This weekend / next weekBessent and Chinese Vice Premier He Lifeng hold final preparatory talks; Xi Jinping arrives in Washington for the summit.

Who has a stake

India — A major buyer of Russian oil and gas, unnamed but expected to be targeted by tariffs of up to 100 per cent.
China — Faces the same tariff exposure as a leading Russian energy buyer, days before Xi's summit with Trump and amid pressure to cut ties with Iran.
President Donald Trump — Gains discretionary authority to levy tariffs on the top five Russian energy importers, expanding his leverage after the IEEPA ruling.
Russia — Energy export revenues, defence sector and shadow tanker fleet come under tighter sanctions pressure.
House Democrats / Gregory Meeks — Oppose the bill for handing Trump 'sweeping new tariff authorities' that could raise costs for Americans and target any government.
US Treasury (Scott Bessent) and Chinese Vice Premier He Lifeng — Negotiating summit economic outcomes, including agricultural tariff cuts and extension of the October trade truce.
BRICS bloc — An 11-nation grouping including China, India, Russia and Iran, pushing local-currency settlement to reduce exposure to US financial leverage.

Why it matters

India is among the largest buyers of Russian crude, so a law empowering the US President to levy up to 100 per cent tariffs on such buyers puts Indian exports and energy sourcing choices directly at risk. It also shows sanctions being enforced through tariffs on third countries rather than on Russia alone, blurring trade and security policy. The response — BRICS moves towards local-currency settlement — signals a longer-term contest over the dollar-based financial system.

UPSC angle

Prelims pointers

Lindsey Graham Sanctioning Russia and Iran Act of 2026: House 262-159, Senate 86-11; allows up to 100% tariffs on the five largest importers of Russian oil and gas.
US Supreme Court ruled in February that Trump's tariffs under the International Emergency Economic Powers Act (IEEPA) were unconstitutional.
Section 301 of the 1974 Trade Act used in July for 10-12.5% tariffs on 60 economies including India, China, Japan, South Korea and EU states.
Section 338 of the Tariff Act of 1930, never used before, invoked for 50% tariffs on Canadian goods.
New Delhi Declaration 2026 adopted unanimously at the 18th BRICS summit; 45 pages; backs local-currency trade settlement.
BRICS: 11-nation grouping including China, India, Russia and Iran, spanning four continents and nearly half the world's population.

Mains framing

The Act marks a shift from sanctioning Russia directly to penalising third countries that buy its energy, using tariffs as the enforcement instrument. Its causes lie in Washington's search for leverage over Moscow and, after the Supreme Court struck down IEEPA-based tariffs in February, in the administration's pivot to Section 301 of the 1974 Trade Act, Section 338 of the Tariff Act of 1930 and other statutes to preserve tariff power. The implications are threefold: unnamed but obvious targets like India and China face duties of up to 100 per cent, with exemptions apparently reserved for smaller buyers reducing Russian reliance; domestic critics such as Representative Gregory Meeks warn the broad language lets the President tariff "nearly any country he wants" using sanctions evasion as a pretext, raising costs for Americans; and targeted states are building workarounds, as seen in the BRICS New Delhi Declaration 2026 endorsing local-currency trade settlement and payment interoperability. The way forward for India, on the source's own evidence, lies in diversifying energy sourcing, sustained diplomatic engagement of the kind Bessent and He Lifeng are pursuing before the Xi-Trump summit, and multilateral payment arrangements that cushion exposure to unilateral tariff action.

Key terms

Lindsey Graham Sanctioning Russia and Iran Act of 2026: US law allowing the President to impose up to 100% tariffs on the five biggest importers of Russian oil and gas, plus sanctions on Russia's energy, defence and tanker fleet and on Iran.
IEEPA (International Emergency Economic Powers Act): US statute Trump used for sweeping tariffs; the Supreme Court held those tariffs unconstitutional in February.
Section 301, Trade Act of 1974: Provision used in July for 10-12.5% tariffs on 60 economies over forced-labour claims, with a further probe into industrial capacity covering 16 economies.
Section 338, Tariff Act of 1930: Obscure Depression-era provision, never used before, invoked for 50% tariffs on Canadian goods; gives broad, fast tariff authority.
Operation Economic Outcast: US sanctions campaign under which Washington presses China to sever commercial ties with Iran.
New Delhi Declaration 2026: 45-page document adopted unanimously at the 18th BRICS summit, backing local-currency trade settlement and cross-border payment interoperability.

Practice questions

The Lindsey Graham Sanctioning Russia and Iran Act of 2026 penalises buyers of Russian energy rather than Russia alone. Examine the implications of such secondary, tariff-based sanctions for India's energy security and trade policy.
Discuss how the US Supreme Court's February ruling on IEEPA tariffs has reshaped the legal instruments through which the American executive levies tariffs.
The BRICS New Delhi Declaration 2026 endorses local-currency trade settlement. Evaluate whether de-dollarisation is a credible response to unilateral tariff and sanctions pressure.

Grounded only in the source report — figures and dates are the source's, not inferred.

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