USA · · 3 min read

Trump signs major Russia sanctions law targeting oil buyers

The new US law expands sanctions on Russia and gives Donald Trump powers to penalise countries that buy its oil and gas.

A new US law gives Donald Trump broad powers to intensify economic pressure on Russia, including the potential to impose tariffs of up to 100 percent on major purchasers of Russian oil and gas. The president signed the measure on Friday, according to reporting by Al Jazeera.

The legislation is aimed at Russia’s government, financial system, energy industry and defence sector. It also targets the network of tankers used to transport Russian oil outside the reach of Western restrictions. Russian President Vladimir Putin, senior officials and wealthy business figures are among those covered by the sanctions.

The tariff authority could have its greatest effect on China and India, the two biggest buyers of Russian crude. The law also renews or extends restrictions affecting Iran’s energy and weapons industries, widening its reach beyond the war in Ukraine.

A rare bipartisan vote

The measure is named the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, in honour of Republican Senator Lindsey Graham, who spent more than a year working on it before his unexpected death in July. Democratic Senator Richard Blumenthal helped write the bill.

The Senate approved the legislation last month. The House followed on Wednesday, when 58 Democrats joined Republicans in supporting it. Its passage represents the first major Ukraine-focused measure to win approval from Congress in more than two years.

The cross-party backing gave the bill unusual momentum at a time when US political support for further action on Russia has faced disagreement. Its supporters argue that restricting the Kremlin’s access to energy revenue could weaken the finances sustaining its invasion and make negotiations more likely.

Ukrainian President Volodymyr Zelenskyy had urged lawmakers to approve the legislation before the vote. He described it as a powerful instrument for influencing Moscow. House Speaker Mike Johnson said the measure was intended to apply the greatest possible pressure to Russia’s military effort.

Blumenthal also presented the bill as a way to encourage Putin to enter talks, arguing that the United States now had a clearer means of making its demands felt.

Concerns over tariffs and enforcement

The law’s opponents focused particularly on the provision allowing tariffs against the largest customers for Russian energy. Hakeem Jeffries, the House minority leader, voted against the measure. He warned that the tariff powers could increase expenses for American households and argued that the sanctions framework contained weaknesses that could allow evasion.

The legislation’s focus on Russia’s so-called shadow fleet reflects the difficulty of enforcing existing restrictions on Russian oil. These tankers help move supplies through international markets despite Western sanctions. By targeting the vessels and the financial institutions connected to Russia’s energy trade, the new law seeks to constrain both the sale of crude and the money generated by it.

The possible effect on India is already politically sensitive. The Indian government said it remained committed to protecting energy supplies for its 1.4 billion people, a position that underlines the tension between Washington’s sanctions strategy and the needs of countries that rely on Russian imports.

The tariff threat could also affect China, whose purchases are central to the Russian energy trade. Trump’s decision comes roughly one week before he is scheduled to welcome Chinese President Xi Jinping to the White House. That timing places the new powers in the background of an important US-China meeting and could make energy trade a prominent issue in discussions between the two governments.

Pressure on Moscow

The law does not itself impose a 100 percent tariff on every major buyer. Instead, it gives Trump the authority to decide whether and how to use that power against the five largest purchasers of Russian oil and gas. The measure therefore creates a potential escalation rather than an automatic new tariff regime.

Supporters believe that prospect may be enough to persuade countries to reduce their purchases or pressure Moscow toward talks. Critics fear the costs could spread beyond Russia, affecting global energy prices and American consumers while producing uncertainty for countries that have not joined the US approach.

Its immediate significance is political as well as economic. After more than two years without a major Ukraine-related law passing Congress, lawmakers have sent the White House a measure that combines sanctions on Russia with pressure on its commercial partners. Trump’s signature turns that congressional initiative into a new tool of US foreign policy, with its impact likely to depend on how aggressively the president uses the authority now available to him.

us politicsrussiaukrainesanctionsenergychinaindiadonald trump

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