Tuesday, 02 January 2024 12:17 GMT

US House Passes Russia Sanctions Bill, Sending It To Trump What It Means For Tariffs On India?


(MENAFN- Live Mint) The US House of Representatives on Wednesday (US Time) passed a broad package of sanctions targeting Russian officials and key pillars of its economy as lawmakers look to deprive President Vladimir Puti of the financial resources needed to wage the war against Ukraine, news agency AP reported.

The House passed the sanctions bill on Russia by a 262-159 margin. The bill named 'The Lindsey O Graham Sanctioning Russia and Iran Act of 2026' grants Donald Trump-led US government the authority to place tariffs of up to 100% on the five top purchasers of Russian oil and gas, which includes India, the agency said.

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The bill, however, includes substantial exemptions for US European allies, on the grounds that several of those nations have made efforts to reduce energy purchases from Russia.

Quick answers to key questions

.5 QUESTIONS1What is the Lindsey O' Graham Sanctioning Russia and Iran Act of 2026?⌵

The Lindsey O' Graham Sanctioning Russia and Iran Act of 2026 is a sanctions bill passed by the US House targeting Russian officials and the economy, allowing President Trump to impose tariffs of up to 100% on major importers of Russian oil and gas, including India.

2How will the new sanctions bill affect India's oil imports from Russia?⌵

The sanctions bill allows the US to impose up to 100% tariffs on India's imports of Russian oil and gas, pressuring India to reconsider its energy purchases from Russia amid the US efforts to deter countries supporting Russia's economy.

3Why are US tariffs on Indian imports a concern for India?⌵

US tariffs on Indian imports are concerning because they could destabilize trade relations, lead to increased costs for consumers, and challenge India's ongoing economic recovery and market access with its largest export partner.

4What exemptions are included in the Russia sanctions bill for US allies?⌵

The Russia sanctions bill includes exemptions for US European allies who have taken significant steps to reduce their energy purchases from Russia, unlike India and China, which are major importers.

5Should India diversify its energy sources in light of the US sanctions bill?⌵

Yes, India should consider diversifying its energy sources to mitigate risks associated with potential US tariffs on Russian oil imports and ensure energy security and economic stability.

The bill is named after the late Sen. Lindsey Graham of South Carolina, who spent more than a year negotiating it. The measure was approved in a 262-159 vote and now heads to President Donald Trump to be signed into law.

The bill cleared a key procedural hurdle in the House on Tuesday evening, with two Democrats joining Republicans to approve the measure, taking the vote in favour to 214:211. The vote came despite opposition from several senior Democrats who raised concerns over the extent of the President's powers over tariffs under the legislation.

The bill that would likely target China, Slovakia, Hungary and Azerbaijan has already passed by an overwhelming margin in the Senate. This means it will now head to President Donald Trump's desk to be signed into law.

What does the bill propose?

The proposed law represents the most ambitious effort to support Ukraine since Trump's return to the White House and would break nearly two years of relative gridlock on the issue following a 2024 emergency aid package, AP said. Ukrainian President Volodymyr Zelenskyy has been pushing for the bill's passage and made a direct appeal to senators shortly before they passed it last month.

The measure sanctions Russian officials, banks and a shadow fleet of tankers that keeps Russian energy moving. It also directs Trump to impose up to 100per cent tariffs on the top five importers of Russian oil or natural gas, with an exception for countries that import less than 15per cent of Russia's natural gas exports and have taken significant steps to reduce those imports.

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"These countries have a choice to make about whether they will continue to sustain Putin's aggression," Republican Representative Michael McCaul was quoted as saying by news agency AP.

Supporters said the tariff provisions are aimed at deterring China and India from purchasing Russian energy. The critics, however, said they fear Trump will use the legislation to target allies in the European Union and elsewhere. Americans would pay the price for such tariffs through higher prices at the cash register, they warned.

"This president has always said he loves tariffs," said Rep. Gregory Meeks, D-N.Y. "And we know the history of what he's done with reference to tariffs to our European allies, and our allies everywhere."

What it means for India?

For India, the legislation allows creating a new legal route for Washington to impose tariffs of up to 100 per cent on Indian imports over New Delhi's continued purchases of Russian energy, news agencies reported.

India and China are among the biggest buyers of Russian crude. The tariff provision is intended in part to put pressure on countries that continue to support Russia's energy revenues.

The measure directs the president to impose tariffs of up to 100 per cent on the five largest importers of Russian oil or natural gas. It however makes an exception for countries that import less than 15 per cent of Russia's natural gas exports and have taken significant steps to reduce those purchases.

Democratis divided on the bill

Democrats were divided on the bill, despite overwhelming support in the caucus for aiding Ukraine. Representative Steny Hoyer (D) told colleagues they can't control what the president does, but they can stand up and declare where they are on the war.

"If we fail to pass this bill, there will be cheers in the Kremlin and tears in Kyiv," Hoyer said.

But Representative Don Beyer (D) predicted Ukraine supporters would come to regret voting for the bill.

"Yes they will be able to say we stood with Ukraine' in the immediate aftermath," Beyer said. "But when Donald Trump hits our allies with new tariffs and waives sanctions on Russia, the propaganda victory for Putin will be lasting, and the damage will be embedded in US law."

Democratic leader Hakeem Jeffries of New York, speaking in opposition to the bill, said Democrats would continue to support the Ukrainian people until victory is won, "but this bill does not provide a path to secure that."

In all, 58 Democrats broke with Jeffries and voted for the bill, while 152 voted against it. Among Republicans, 203 voted yes while seven voted against it.

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Speaker Mike Johnson celebrated the vote and highlighted the additional tariff power it provides the president. "For too long, Putin has bankrolled this devastating war with money and resources from countries willing to look the other way, and today, that ends," Johnson said.

(With AP inputs)

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