US President Donald Trump has cleared a sweeping sanctions bill that could impose punitive tariffs on countries importing Russian petroleum products, a move that may significantly affect India’s energy trade and ties with Washington.
The proposed legislation—titled the Sanctioning Russia Act of 2025—authorises duties of at least 500% on goods and services imported from countries that “knowingly engage” in trade involving Russian-origin uranium and petroleum products. US Senator Lindsey Graham said the bill, now heading toward bipartisan approval, is intended to penalise nations “who buy cheap Russian oil,” explicitly naming India, China and Brazil as countries that could face pressure.
Under the bill, the sanctions would be triggered if the US President determines that the Russian government—or actors operating at its direction—refuse to negotiate a peace agreement with Ukraine. The measures could also be reinstated if any negotiated peace is violated, if another invasion is launched, or if attempts are made to overthrow or subvert the Ukrainian government.
In a post on X, Graham said he had discussed the legislation with Trump, who “greenlit” the bipartisan effort. He argued that the timing was critical, claiming Ukraine was making concessions for peace while Russia continued its military campaign. According to Graham, the bill would give Trump “tremendous leverage” to pressure countries to stop purchasing discounted Russian oil that helps finance the war.
Graham also claimed that India has been urging Washington to roll back steep tariffs imposed in August 2025 over the same issue. He said India’s ambassador to the US, Vinay Mohan Kwatra, met him to highlight New Delhi’s reduced purchases of Russian oil and to seek relief from an additional 25% levy. With that surcharge, total duties on certain Indian goods rose to 50%.
Speaking to reporters aboard Air Force One, Graham said the Indian envoy had pressed for tariff relief, emphasising India’s efforts to cut back on Russian oil imports. The US had justified the August tariffs by arguing that India’s energy trade with Russia indirectly supported Moscow’s war effort.
Trump has acknowledged that the trade measures have strained relations with Prime Minister Narendra Modi. Addressing a House GOP retreat, he said Modi was unhappy with the tariffs but noted that India had “reduced [oil imports] very substantially” from Russia. Trump has repeatedly warned that tariffs could be raised further if India does not “help on the Russian oil issue,” directly linking trade pressure to the Ukraine conflict.
India, however, has rejected Trump’s earlier claim that Modi had assured him New Delhi would stop buying Russian oil, clarifying that no such conversation took place. As the sanctions bill advances, it could introduce fresh uncertainty for India’s trade outlook with the US.
Meanwhile, Trump has sought to position himself as a potential broker in the Russia-Ukraine war, holding talks with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy, though without any concrete breakthrough so far.
