Russia sanctions act 2025 could reshape energy ties with India and key buyers

President Donald Trump has backed the Sanctioning of Russia Act 2025, which proposes steep new penalties on Russia and its trade partners. The bill allows import duties of at least 500 per cent on Russian exports to the US and targets countries such as India, China and Brazil that keep buying discounted Russian oil.

The plan is expected to affect energy-importing economies that rely on cheaper Russian crude to manage domestic fuel prices. For India, which has used low-cost Russian supplies to contain inflation and support growth, the measure could raise oil import costs and create fresh friction with Washington over energy ties with Moscow.

According to the US Congress website, the Sanctioning of Russia Act 2025 sets out wide sanctions on individuals, firms and financial entities linked to Russia. Its most notable measure is a requirement that US tariffs on Russian goods and services be increased to at least 500 per cent of their value, sharply restricting the profitability of trade flows.

Beyond direct duties on Russian exports, the Russia sanctions bill gives the US administration scope to penalise countries that, in its view, help sustain Moscow’s revenues through oil purchases. Senator Lindsey Graham said the proposed framework would equip Trump with tools to pressure India, China and Brazil over continued imports of Russian crude and refined products.

Graham, who is leading efforts to pass the Russia sanctions bill, stated that Trump’s approval followed a detailed discussion in Washington. In an X post, Graham wrote, "After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others."

Separately from the fresh proposal, Trump has already ordered tariffs of 50 per cent on a range of Indian goods. Trump argued that India’s imports of Russian oil support Moscow’s economy, and warned that Washington could increase duties if New Delhi does not cut purchases of Russian crude to a level the US considers acceptable.

Speaking at the House GOP Member Retreat, Trump said, "I have a very good relationship with PM Modi, but he is not happy with me as India is paying high tariffs." He added, "They wanted to make me happy, basically. Modi is a very good man; he is a good guy." Trump claimed India had "very substantially" reduced buying Russian oil but suggested he expected additional action.

The Indian government rejected Trump’s assertion that Prime Minister Narendra Modi had promised to stop purchasing Russian oil. Officials said no such assurance or conversation had occurred, and reiterated that India’s energy choices are shaped by national interest and affordability. With global fuel benchmarks volatile, discounted Russian barrels have been used to limit pressure on the current account and keep pump prices relatively stable.

Measure	Target	Stated level
New import tariff under Sanctioning of Russia Act 2025	Russian goods and services	At least 500% of value
Existing tariff mentioned by Trump	Selected Indian goods	50%

Geopolitical context of the Russia sanctions bill

Graham linked the push for the Russia sanctions bill to developments in the Ukraine conflict, saying the timing reflected peace discussions alongside continued Russian military activity. Graham stated, "This bill will allow President Trump to punish those countries who buy cheap Russian oil fuelling Putin's war machine," and said it would give Trump "tremendous leverage" over India, China and Brazil.

Graham indicated that a bipartisan vote in the US Senate on the Russia sanctions bill could take place as early as next week, meaning both Republican and Democrat senators may support it. If lawmakers approve the legislation, Trump would gain wide authority to impose heavier tariffs and financial sanctions, a move likely to draw firm responses from India, China and Brazil as they weigh energy security against diplomatic costs.

The sanctions debate is unfolding while Ukraine explores possible peace talks. On January 7, Ukrainian President Volodymyr Zelenskyy met a US delegation including Steve Witkoff and Jared Kushner to discuss diplomatic options for ending the war. These discussions, alongside the Russia sanctions bill, underline efforts to combine economic pressure on Moscow with negotiations aimed at a settlement.