In a significant move that could impact global energy trade and diplomatic relations, a bipartisan group of US lawmakers is advancing a sanctions bill targeting nations that continue to purchase Russian oil. Republican Senator Lindsey Graham announced on Wednesday that President Donald Trump has approved moving forward with the legislation, which could face a congressional vote as early as next week.
Bipartisan Push to Target Russia's War Funding
Senator Graham, a key figure from South Carolina, revealed that he received the green light from President Trump during a meeting earlier on Wednesday. The proposed law, known as the "Sanctioning of Russia Act 2025," aims to impose penalties on countries engaging in business with Russia, specifically targeting buyers of its energy exports. This effort is a direct response to Moscow's ongoing war in Ukraine, which began with its invasion in 2022.
"This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine," Graham stated explicitly. He named China, India, and Brazil as potential primary targets of the legislation. The bill has been in development for months through collaboration between Republicans and Democrats.
Strain on US-India Relations and Trade
The development introduces fresh tension into the relationship between the United States and India. Leaders in both the Senate and House of Representatives had previously delayed bringing the bill to a vote, as President Trump has favored an alternative approach: imposing tariffs on goods imported from India. India is the world's second-largest purchaser of Russian crude oil, trailing only China.
Trump himself has commented on the friction, noting his "very good relationship" with Prime Minister Narendra Modi while acknowledging the Indian leader's displeasure over the 50% tariffs imposed on Indian goods. "He is not happy with me as India is paying high tariffs. But now they have reduced it very substantially, buying oil from Russia," Trump remarked. He suggested that Modi's government adjusted its oil purchases partly to ease US concerns.
However, Indian officials have firmly dismissed Trump's claim that PM Modi assured him New Delhi would stop buying Russian oil, clarifying that no such discussion or commitment ever took place.
Economic Repercussions and Shifting Trade Dynamics
The potential sanctions and existing tariffs are already influencing economic patterns. According to reports, India's crude oil imports are projected to fall to a three-year low this month. This decline is attributed to the punitive US tariffs and tighter international sanctions enforcement on Russia.
The US administration argues that India's purchases of discounted Russian oil provide crucial financial support to Moscow's military campaign in Ukraine. The proposed sanctions bill includes severe provisions, such as raising the duty on all Russian goods and services imported into the US to at least 500% of their value.
Despite the pressure, the historical and economic ties between India and Russia remain robust. Trade between the two nations skyrocketed from approximately $13 billion in 2021 to nearly $69 billion in the 2024–25 period, largely powered by Indian energy imports. Both countries have set an ambitious target of reaching $100 billion in bilateral trade by 2030.
In a recent twist, Russian officials have indicated a desire to import more Indian products to balance a trade relationship currently dominated by energy exports. Deputy Kremlin Chief of Staff Maxim Oreshkin highlighted this goal at a business conference in New Delhi, signaling Moscow's intent to diversify trade amid Western pressure.
As the bill heads toward a possible vote, all eyes are on the delicate diplomatic dance between Washington and New Delhi. The outcome will significantly affect global energy markets, the ongoing conflict in Ukraine, and the strategic partnership between two of the world's largest democracies.
