The U.S. Senate voted 86-12 to advance a bipartisan bill that would slap tariffs of up to 100 % on the five biggest buyers of Russian oil and gas. For India, which spent almost $15 billion on Russian crude between March and May 2026, the measure forces a stark calculus between cheap fuel and a growing rift with Washington.

How the bill works

The legislation, first introduced by the late Senator Lindsey Graham, targets Russia’s main source of war-financing: its energy exports. The most aggressive provision could double the price paid by the top five importers. Earlier drafts floated even steeper duties, but the Senate-cleared version caps tariffs at 100 %.

A secondary clause widens the net to Iran, aiming to choke any revenue that might support its wartime economy or nuclear program. The bill carves out an exemption for U.S. allies, but only if they can “demonstrably reduce” their dependence on Russian energy—a hurdle that demands concrete proof, not diplomatic promises.

India’s exposure

India and China sit at the top of the targeted list. New Delhi has leaned heavily on Russian crude to keep domestic fuel prices in check. Between March and May 2026, Indian importers paid roughly $15 billion for Russian oil, a figure that underscores how quickly the market share has grown.

The payment trail shows a shift away from the dollar. From December 2025 to February 2026, about ₹42,506 crore of those purchases were settled in rupees, a move meant to bypass sanctions and reduce exposure to U.S. financial controls. Until mid-June, the United States granted a waiver that let countries keep buying Russian energy despite broader sanctions, citing the strategic risk of a blockage in the Strait of Hormuz. That temporary relief now expires, leaving India exposed to the full force of the new tariffs.

Political backdrop

The Senate’s vote took place on the day of Senator Graham’s funeral, a ceremony attended by President Donald Trump, Israeli Prime Minister Benjamin Netanyahu and Ukrainian President Volodymyr Zelensky. Their presence underscored the symbolic weight of the legislation.

Support crossed party lines, signaling that using economic pressure to isolate Moscow is a core element of U.S. foreign policy, regardless of which administration holds the White House. President Trump publicly backed the bill, framing the tariffs as part of an “energy war” that will shape U.S.–Russia relations.

What New Delhi must decide

  • Energy security versus geopolitical alignment – Russian oil has kept gasoline and diesel prices lower than they might otherwise be in a country of massive population.
  • Payment-system risk – Settling oil deals in rupees sidestepped dollar-based sanctions, but the new bill could trigger secondary sanctions on entities that facilitate the trades.
  • Diplomatic leverage – To qualify for the ally exemption, India will need to demonstrate a measurable decline in Russian energy imports.

Takeaway

The Senate’s 86-12 vote puts India at a crossroads: continue buying cheap Russian oil and risk punitive tariffs, or pivot away and face higher energy costs at home while courting U.S. goodwill.