US Congress Passes Russia Sanctions Bill Authorising Tariffs of Up to 100 Percent on Oil Buyers

The United States House of Representatives passed the Russia sanctions bill on Wednesday by 262 votes to 159, sending it to President Donald Trump for signature. The Senate had approved it in August by 86 to 11. The legislation authorises tariffs of up to 100 percent on the largest buyers of Russian oil and natural gas, as Indian outlets reported, with India and China the two countries named most often in the debate.

BBC Hindi noted that the bill carries substantial carve-outs for European allies of the United States, on the grounds that many of those countries have already reduced their purchases of Russian energy. The authority is discretionary, which means the tariff becomes a negotiating instrument rather than an automatic penalty.

Indian trade analysts responded sharply. Ajay Srivastava, founder of the Global Trade Research Initiative, called the bill an attempt to pressure New Delhi into a bilateral trade agreement on unfavourable terms, arguing that India buys Russian crude to secure affordable energy for 1.4 billion people and that those purchases helped stabilise global supply and prices. Washington had withdrawn a 25 percent Russia-related levy on Indian goods in February, citing steps India had taken.

The pattern is now familiar. The United States is using access to its market, and to dollar clearing, as the enforcement mechanism for a foreign policy objective. Each round of that gives the targeted buyers another reason to settle energy trade outside the dollar.