The United States Senate has approved a bill that could allow President Donald Trump to impose tariffs of up to 100% on goods from countries such as India and China that continue to buy Russian oil and gas and other exports. Trump can argue that such trade helps sustain Moscow’s economy and fund its war in Ukraine.
Further, the bill goes beyond buyers, and also proposes sanctions against Russian President Vladimir Putin, senior political and military officials, financial institutions, energy projects and other entities linked to Russia’s war effort.
Notably, the legislation gives the US president the authority to impose tariffs of up to 100% on goods imported from countries that are among the top five buyers of Russian oil or natural gas.
It would also expand US sanctions to older and reflagged oil tankers that Russia allegedly uses to circumvent existing restrictions and continue generating revenue from oil exports. The wider objective is to reduce the flow of money supporting Russia’s economy and military campaign.
How it will impact India?
Globally, India is one of the world’s biggest buyers of Russian crude, alongside China.
As the measure aims to make countries choose between continuing to buy discounted Russian energy and maintaining access to the US market, tariffs threat on India looms.
Notably, India’s purchases of discounted Russian crude have increased significantly since the Russia-Ukraine war began in 2022.
After Russia’s war with Ukraine, Europe stopped buying Russian crude. This made oil available at huge discounts for India.
It helped Indian refiners lower crude costs and secure supplies despite disruptions in global energy markets.
Darline Graham, the late senator’s sister who was appointed to his seat, said the legislation would force countries supporting Russia’s economy to make a choice. “This bill forces those primary countries keeping Russia’s economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy,” she said, as quoted by PTI.