A bipartisan group of US senators has introduced a revised version of legislation aimed at increasing pressure on Russia by targeting its energy revenues, while easing some of the toughest measures proposed in the original bill.
According to the updated proposal, the maximum tariff on the import of Russian oil and gas has been reduced from 500% to 100%, with the penalties covering the five largest Russian energy markets worldwide, including China and India.
The legislation, which was first introduced by the late Republican senator Lindsey Graham of South Carolina, intends to impose new sanctions on Russian officials and institutions while preventing the purchase of Russian energy supporting Moscow’s war in Ukraine.
Tariffs scaled back
According to the revised bill, tariffs of up to 100 per cent could be imposed on the five biggest importers of Russian crude oil and natural gas.
Lawmakers identified China, India, Slovakia, Hungary and Azerbaijan among the largest buyers of Russian crude, while major importers of Russian natural gas include China, France, Japan, Hungary and Belgium.
The bill also proposes sanctions targeting Russia’s so called shadow fleet of oil tankers, which Moscow has used to bypass Western shipping restrictions and insurance sanctions.
In addition, it seeks penalties against major Russian financial institutions, including the Central Bank of Russia, as well as state backed energy projects such as Yamal LNG and Arctic LNG.
Exemptions for some countries
According to the amended proposal, countries that get less than 15 per cent of their natural gas from Russia and are taking steps to lower their reliance on Russian energy will qualify for an exemption.
Countries like Japan, France, Hungary, and Belgium that could qualify for this exemption effectively eliminate the adverse effects on important US allies.
Changes aimed at winning support
The softer approach follows concerns among lawmakers that the original proposal’s 500 per cent tariff could disrupt global energy markets and strain relations with allies that continue to rely on Russian energy while supporting Ukraine.
The revised legislation also grants President Donald Trump the authority to waive sanctions if doing so is deemed to be in the US national interest.
A Senate aide said the amendments were designed to ensure broader political backing and improve the bill’s chances of advancing through Congress.
Lindsey Graham’s legacy
The legislation has gained renewed attention following the death of Senator Lindsey Graham, who had worked with Democratic Senator Richard Blumenthal on the proposal for more than a year.
Blumenthal has supported naming the sanctions package after Graham, calling it an important part of the late senator’s legacy.
Senate Democratic leader Chuck Schumer urged lawmakers to move the bill quickly, while Senate Majority Leader John Thune expressed confidence that Congress could find a path forward.
Trump backs revised proposal
The legislation has received President Trump’s endorsement, who noted that it is a tribute to Graham and has a good chance of being passed.
Trump also proposed expanding the legislation to include sanctions targeting Iran and Hezbollah, with Blumenthal opposing this idea and stating that it is imperative for the lawmakers to focus on Russia and avoid any delays in passing.
It is also expected that the modified sanctions package will be submitted to the Senate, where lawmakers will strive to balance exerting pressure on Moscow with their energy security concerns, relations with key US partners, and global market considerations.