100% tariff on five countries including India that buy Russian oil…, bill with strict sanctions introduced in US

Washington. Senators from both major parties of America have introduced a much-awaited bill imposing comprehensive sanctions on Russia. This includes the names of five countries, including India, on which duty can be imposed if they continue purchasing oil from Russia. Some MPs are calling this proposal “Lindsey Graham Russia Accountability Bill”. It was introduced on Capitol Hill on Tuesday by Democratic Senators Richard Blumenthal and Jeanne Shaheen, along with Republican Senators Roger Wicker, Katie Britt and more than a dozen lawmakers from both parties.

This bill has been introduced immediately after the demise of Senator Lindsey Graham. Graham worked on the bill for nearly two years and his colleagues described him as its key architect. In this bill, Graham had recommended imposing 500 percent tariff on countries purchasing Russian oil.

Why did American lawmakers present a bill with 100 percent tariff?

Blumenthal, the lead Democratic sponsor, said the bill is not limited to just imposing fees. It also has a provision to impose complete sanctions on large parts of Russia’s economy, energy and financial sectors, defense industry, Russian industrialists and President Vladimir Putin. The bill also gives the administration the right to impose tariffs at a rate greater than zero on the countries that buy the most oil from Russia. However, the maximum limit of the fee has been fixed.

According to the bill, the duty will now apply only to the top five countries in the world purchasing oil or natural gas from Russia. The sponsors of the bill said that China and India are at the top of this list. In the revised draft, the earlier proposed 500 per cent duty has been reduced to a maximum of 100 per cent.

India’s name also in the list of countries with tariffs

The five countries named by Blumenthal include India, China, Slovakia, Hungary and Azerbaijan. There is a provision in the bill to also include countries purchasing natural gas from Russia. However, countries which import less than 15 percent of their total gas from Russia and are taking steps towards reducing these imports will be exempted from this. This provision will provide relief to most of the European allied countries.

The senators clarified that the actual rate of the fee has not been decided yet. This is not stipulated in the bill, but will be decided by the US Trade Representative. Blumenthal said he expected the tariff rate to be high enough to “disincentivize China, India and other major countries from buying oil and gas from Russia.” However, he declined to give any specific percentage.

Trump has the prerogative to grant waivers

The Bill also gives the President the power to grant exemption in special circumstances. If the fee is reduced later, it will be mandatory to inform Congress about it. Senator James Risch, chairman of the US Senate Foreign Relations Committee, said he pushed to add a separate provision that would take action against Russia’s so-called “shadow fleet”, i.e. oil tankers that are used to export oil while evading existing sanctions.

MPs said the bill was much more limited than the earlier draft. The earlier version reportedly had a provision to impose tariffs on up to 63 countries. Blumenthal said the current draft focuses only on the five major countries that buy oil and gas from Russia. The names of some of these countries are included in both the lists. He said that this change has been made on the suggestion of the Trump administration and the administration has also supported this bill in writing.

What did American MPs say about Lindsey Graham?

MPs expressed hope that the revised draft would also get broad support in the House of Representatives, as many MPs had objected to the earlier broader proposal. Several senators paid tribute to Lindsey Graham during the bill’s announcement. Senator Roger Wicker said he saw many accomplishments during Graham’s more than three decades working with him, but “this is his greatest contribution.”

Senator Ted Cruz said Graham had negotiated the terms of the bill directly with President Donald Trump before he died. He appealed to MPs to pay tribute to Graham by passing it with an overwhelming majority. MPs said that it is necessary to pass this bill soon. He cited Ukraine’s advance on the battlefield and Russia’s ongoing attacks on civilian areas.

Several senators expressed hope that the Senate could act on it by the end of August. He says that as soon as sufficient support is received, voting will be held on it. When asked about President Trump’s suggestion that the bill could also include sanctions on Iran or Hezbollah, Blumenthal said his priority right now is to move the existing bill forward. However, he did not rule out the possibility of bringing a separate bill in future.

Why did the crisis deepen in India?

India has so far not accepted pressure from Western countries to reduce purchases of Russian crude oil at concessional rates. India’s oil imports from Russia have increased significantly since 2022 and have now become a significant part of India’s total oil imports. New Delhi has already said that this trade is in the interest of the country’s energy security and consumers. India has also been saying that this helps in keeping global oil prices stable.

This bill is yet to be passed by the House of Representatives after going through the processes of the Senate. Only after this will it be sent to President Donald Trump for approval. Earlier, a White House official told ANI that the Trump administration supports this Russia sanctions bill. A White House official said that under this bill, President Trump could get the authority to impose tariffs of up to 500 percent on imports from countries that continue doing business with Russia’s energy sector.