Trump Enacts Russia Sanctions Law Empowering 100% Tariffs on Major Energy Buyers

US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, enacting sweeping restrictions targeting Moscow's energy, defense, and financial sectors. The statute cleared the House of Representatives by a 262-159 vote following Senate approval in August, granting the executive branch authority to levy import duties of up to 100 per cent on nations purchasing Russian oil and gas, directly affecting major buyers including India and China.

The legislation was championed by the late Republican Senator Lindsey Graham, who passed away in July. In addition to targeting Russian officials and banking institutions, the framework explicitly addresses Moscow's maritime shadow fleet utilized to circumvent international crude export limits. The enactment coincides with ongoing congressional resistance regarding executive trade powers, as well as a scheduled visit by Trump to meet Chinese counterpart Xi Jinping.

The statutory package drew swift responses from foreign capitals. Ukrainian President Volodymyr Zelenskyy welcomed the measure as critically important, urging international partners to execute its provisions swiftly to increase pressure on Moscow. Ukrainian officials noted that economic restrictions remain vital to curbing Russian military operations as the conflict enters its fifth year.

Conversely, former Russian president Dmitry Medvedev condemned the enactment, advocating for a robust counter-strategy. Medvedev, who serves as deputy chair of Russia's Security Council, asserted on Telegram that Moscow should respond to the legislation through direct military deterrence, characterizing the new US law in severe rhetorical terms.

The provision authorizing 100 per cent tariffs places significant diplomatic and economic pressure on nations that maintain energy trade with Moscow, specifically India and China. New Delhi reiterated that its energy acquisition strategy is anchored in national interest and the energy security needs of its population, noting that the country procures crude through diversified sourcing.

Indian Ministry of External Affairs spokesperson Randhir Jaiswal confirmed that diplomatic channels have already communicated New Delhi's concerns to senior US officials regarding the potential disruptions to bilateral ties, international energy markets, and overall supply stability. The upcoming bilateral engagements between Washington and Beijing will also navigate the broader trade ramifications of these extended economic penalties.

The White House confirmed that the newly signed statute immediately extends existing restrictions on Iran while substantially broadening federal authority over Russian trade entities, banking channels, and shipping networks. Observers note that while the legislation delivers the robust punitive framework sought by pro-Ukraine advocates, its ultimate economic impact will depend on whether executive authorities choose to exercise the newly granted tariff mechanisms against major non-Western purchasers.