The US Senate has approved legislation that could significantly raise the economic cost for countries continuing to purchase Russian energy, with India and China among the major buyers that could potentially face new US trade penalties.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was passed by an 86-11 vote. The legislation now moves to the US House of Representatives, which is expected to take it up after lawmakers return on August 31.

If enacted, the measure would give President Donald Trump the authority to impose tariffs as high as 100% on products entering the US from countries that rank among the five largest purchasers of Russian oil and gas.

India And China In Focus

The proposed legislation comes as Washington seeks to squeeze Russia's energy revenues, arguing that purchases of Russian petroleum provide Moscow with financial resources that can support its military campaign in Ukraine.

India and China are currently among the leading buyers of Russian energy. Azerbaijan, Hungary and Slovakia are also listed among the five largest importers in the source material.

The proposed tariff mechanism would therefore give the US administration a powerful tool to pressure countries over their continued reliance on Russian energy supplies.

The bill also proposes sanctions against senior Russian officials and other individuals and entities, including President Vladimir Putin, Russian oligarchs and financial institutions.

Bill Also Targets Iran

The legislation goes beyond Russia-related measures. It would extend the Iran Sanctions Act of 1996 through 2031.

The law targets companies that invest in Iran's energy industry, extending Washington's existing sanctions framework against Tehran's energy sector.

Bill Named After Lindsey Graham

The legislation was championed by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal.

Graham died on July 11 following a trip to Kyiv. After his death, Darline Graham, his sister, was appointed to his Senate seat.

Supporters of the bill pushed for its passage in part as a tribute to Graham's strong support for Ukraine and his efforts to increase economic pressure on Russia.

Darline Graham said the legislation would force countries purchasing Russian energy to choose between maintaining those transactions and continuing to do business with the United States.

Blumenthal similarly described the Senate vote as an important step towards increasing pressure on Russia and countries supporting its economy through energy purchases.

Democrats Raise Concerns Over Trump's Tariff Powers

Although the bill received broad bipartisan support, some Democrats have expressed reservations about the extent of the tariff authority it would give Trump.

Representatives Gregory Meeks and Don Beyer argued that the legislation could give the President sweeping new powers to impose tariffs and potentially use them beyond the intended objective of punishing Russia.

They said they supported efforts to hold Russia accountable for the Ukraine war but warned that the proposed mechanism could ultimately lead to additional trade costs for American consumers and businesses.

The lawmakers also argued that expanding presidential tariff authority could allow Trump to use tariffs as part of broader trade disputes.

What Happens Next?

The Senate's approval does not make the sanctions package law. The bill must first clear the House of Representatives before it can move forward.

The House is scheduled to reconvene on August 31, when lawmakers are expected to consider the legislation.

If ultimately approved and signed into law, the measure could create a major new economic challenge for countries that continue importing Russian energy while maintaining access to the US market.

For India, the development could become particularly significant given its substantial purchases of discounted Russian crude oil since the Ukraine conflict began. The potential for 100% tariffs on goods exported to the US could add another layer of complexity to the already sensitive India-US trade relationship.