A new bipartisan US Senate bill is set to fast-track sanctions on major purchasers of Russian and Iranian oil, potentially impacting global energy trade and countries like India and China.
Key Points
- US Senators fast-track a bipartisan bill to sanction major purchasers of Russian and Iranian oil.
- The legislation, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, targets countries like India and China.
- It aims to restrict funding for Russia's war in Ukraine and Iran's energy and weapons programmes.
- Sanctions include potential 100% tariffs on goods from countries enabling Russian sanctions evasion or buying large volumes of Russian fuel.
- The bill also extends the Iran Sanctions Act for five years and includes a five-year sunset clause for new tariff authority.
A bipartisan group of US Senators on Tuesday agreed to fast-track the bill that would allow President Donald Trump to impose sanctions on major purchasers of oil from Russia as well as Iran, a move that would affect countries such as China and India.
The provisions of the Russia sanctions bill, originally piloted by the late Republican Senator Lindsey Graham, will now also extend to restrict funding for Iran's energy and weapons sector.
"We are proud to announce an agreement on legislation to stop purchasers of Russian oil and gas from fueling Putin's war machine and to continue restricting the Iranian regime's ability to support terrorism and build its nuclear programme," a group of senators from both the Democratic and Republican parties said.
An earlier version of the bill focused only on Russia. Iran has been added to the legislation on the suggestion made by Trump.
Bipartisan Support For Sanctions
The announcement was made by Democratic senators Jeanne Shaheen, Richard Blumenthal, and Republicans Darline Graham, Katie Britt, Roger Wicker and Jim Risch.
"There is no greater way to honour Senator Lindsey Graham's legacy than to move forward with this bipartisan agreement, and we look forward to today's (Tuesday) vote," the Senators said.
A procedural vote to move forward on the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 is scheduled to take place Tuesday evening.
The announcement came on the day of the funeral service for Graham, who passed away on July 11, which was held at the National Cathedral in the presence of Ukrainian President Volodymyr Zelenskyy and Israeli Prime Minister Benjamin Netanyahu.
Key Provisions Of The Sanctions Act
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 would impose primary and secondary sanctions against Russia and actors supporting its war in Ukraine.
The sanctions target Russian officials, oligarchs, their family members, foreign persons and Russian banks and financial institutions, as well as the Russian Shadow Fleet.
The legislation allows the President to impose targeted tariffs on imported goods from countries that buy the vast majority of Russian oil or gas, and enable Russian sanctions evasion.
Section 113 of the bill specifically targets the five countries that purchase the largest volumes of Russian fuel or facilitate sanctions evasion through shadow fleets, threatening them with additional 100 per cent tariffs.
Regarding Iran, the legislation extends the Iran Sanctions Act for an additional five years, keeping critical secondary restrictions in place until 2031.
Furthermore, a legislative provision limits the new tariff authority to a five-year sunset period. This ensures the powers do not become a permanent fixture of US trade policy without further renewal.
