US lawmakers are drafting a bill that would sanction countries purchasing Russian oil and gas, aiming to choke off Moscow’s primary revenue stream as peace negotiations remain stalled.
A proposed US Senate bill could impose a 500% tariff on countries that trade with Moscow, including major buyers such as India and China, as Washington pushes for new sanctions backed by President Trump to isolate Russia’s war economy.
Speaking to reporters on Sunday, Trump said Republicans were drafting the legal framework for further sanctions and added: “That's ok with me.” He said, “Any country that does business with Russia will be very severely sanctioned,” and added that “we may add Iran to the formula.”
In an attempt to choke off Russia's energy revenues, the legislation, called the Sanctioning Russia Act of 2025, would bring US tariffs of up to 500% on imports from countries that buy Russian uranium or petroleum products and fail to actively support Ukraine. A similar 500% tariff could also apply to goods or services from Russia itself.
US Senators Lindsey Graham and Richard Blumenthal introduced the bill in April 2025. In a joint statement in July, they said, “The ultimate hammer to bring about the end of this war will be tariffs against countries, like China, India and Brazil, that prop up Putin’s war machine by purchasing cheap Russian oil and gas.”
The bill would take effect if the US President determines that Russia is refusing to negotiate a peace deal with Ukraine, violating a peace agreement, or taking other aggressive actions in Ukraine.
Until now, Trump had been hesitant to support the legislation, as Washington organised peace talks between Ukraine and Russia, including hosting Vladimir Putin in Alaska on 15 August 2025 and exploring a potential summit in Budapest. Despite these efforts, negotiations remain stalled.
Nearly four years into the conflict, the Kremlin shows no sign of retreat, even after a new wave of sanctions from the US and the EU in October this year. This includes US sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, freezing their US-held assets and banning US persons from doing business with them.
At the same time, the European Union adopted its 19th sanctions package, including a phased ban on Russian liquefied natural gas (LNG).
However, these measures have had little impact on Russia’s trade with countries such as India and China. The proposed Senate bill would target these nations with additional tariffs, just weeks after Washington finalised a new tariff deal with China.
However, the US President would retain the power to exempt specific countries, goods, or services from the sanctions.
To become law, the bill must pass the Senate before moving to the House of Representatives. Once both chambers agree on the same version, it would need to be signed by President Trump to go into force.
