An emerging sanctions bill in the U.S. has put Russian energy businesses in the spotlight, as buyers of their crude oil and natural gas may face tariffs up to 100%. India and China are examples of such buyers that can be affected by the bill.
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Tariffs on Russian oil buyers
According to the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the U.S. president shall have the authority to introduce tariffs to the states buying Russian crude oil or natural gas. However, it should be mentioned that the act provides for the possibility of introducing only 100% tariffs. It is up to the president’s discretion to do so. The situation is important for India, as Russian crude accounts for 30.3% of India’s crude imports in FY2026 (The Economic Times).
Exception for Uranium
However, there are some exceptions in relation to civilian nuclear cooperation with Russia and the import of low-enriched uranium for reactors. Thus, it should be stated that the bill does not prohibit all transactions connected with nuclear fuel. In general, the difference is connected with the specifics of the U.S. nuclear fuel supply chain. India is monitoring the developments in this field.
A different approach to Russian energy trade
The bill takes a different approach to Russian oil and uranium, placing pressure on oil buyers while allowing certain nuclear-related trade to continue. This reflects the different roles these energy sources play in the US economy.
What does the bill mean?
The legislation puts greater pressure on countries that continue buying Russian oil and gas while leaving specific provisions for some US-Russia nuclear activities. The bill’s next impact will depend on how the U.S. administration uses the powers and exemptions provided under the legislation.
