US President Donald Trump has signed a sweeping sanctions bill targeting Russia’s energy revenues and Iran’s energy and weapons sectors, giving Washington authority to impose tariffs of up to 100% on the five largest purchasers of Russian oil and gas.
The measure, passed by the US House of Representatives earlier this week and signed on Friday, places particular pressure on China and India, which together account for the overwhelming majority of Russia’s crude exports.
A broad economic weapon aimed at Moscow
The 48-page legislation, formally titled the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, significantly expands the tools available to the US government in its campaign against Russia’s war economy.
At Trump’s request, the bill also extends sanctions to Iran’s energy and weapons industries, linking two of Washington’s most consequential foreign policy targets in a single piece of legislation.
Under the new law, Trump may levy tariffs of up to 100% on the top five countries buying Russian oil and gas. Exceptions are available for nations importing less than 15% of their natural gas from Russia and taking steps to reduce that reliance.
The bill further authorises sanctions against Russian President Vladimir Putin, senior figures in the Russian government, banks and other financial institutions, as well as the so-called “shadow fleet” of tankers used to evade existing restrictions.
Senator Richard Blumenthal, a New York Democrat, had earlier hailed the package as “scorching sanctions” that would “throttle Putin’s war machine”.
China and India at the centre of the pressure campaign
The legislation places a sharp spotlight on Asia’s role in sustaining Russia’s energy trade. Data from the Centre for Research on Energy and Clean Air, known as CREA, shows that China accounted for 50% of Russian crude exports between December 2022 and August 2026.
India followed with 37% over the same period. Turkey and the European Union each represented 5%, although Russian energy exports to the EU have been declining.
For Europe, which has spent years attempting to reduce its dependence on Russian hydrocarbons, the bill raises the stakes of a transatlantic strategy increasingly focused on the buyers rather than Moscow alone.
The measure does not simply punish Russia. It seeks to make the continued purchase of Russian energy a costly diplomatic and commercial choice for the world’s largest importers.
Graham’s final cause on Capitol Hill
The bill is named after the late Senator Lindsey Graham, who died on 11 July at the age of 71 from an “aortic dissection” caused by cardiovascular disease, shortly after returning from a trip to Kyiv.
Graham had long pressed the Trump administration to take a harder line against Russia following its invasion of Ukraine in February 2022. Before his death, he was regarded as one of Ukraine’s most forceful advocates in Washington, even as Republicans remained deeply divided over US involvement abroad and the scale of assistance to Kyiv.
“He died doing the work he was born to do,” Trump said at the time.
Ukrainian President Volodymyr Zelensky welcomed the signing of what he called the “critically important legislation”.
“The best way to honour Lindsey’s memory will be to implement the provisions of this law fully and swiftly,” Zelensky wrote on social media. “Senator Graham never doubted for a second that America has enough strength to stand up to dictators and achieve results if it acts the right way.”
Implementation will be the real test
The bill’s passage marks a major escalation in US economic statecraft, but its impact will depend on how aggressively the White House deploys its new powers.
Tariffs of the scale authorised by the legislation could send shockwaves through global energy markets and test Washington’s relationships with key partners in Asia. They could also complicate efforts to maintain a united front among countries seeking to isolate Russia financially while avoiding disruption to their own economies.
The inclusion of Iran adds another layer of geopolitical significance. By tying Tehran’s energy and weapons sectors to the same legislative framework as Russia, the bill signals a broader American determination to confront states viewed as undermining international security.
Why it Matters
The law matters because it moves the sanctions battle from Russia’s borders to the global marketplace that keeps its war machine funded. If enforced vigorously, it could force China, India and other major buyers to choose between access to the US economy and discounted Russian energy, while giving Europe renewed leverage in its long effort to diminish Moscow’s strategic reach.
