9 hours ago
'Economic bunker buster for India, China': How this US senator's Russia sanctions bill would prove 'bone crushing' for trade- if passed
I
ndia's economic advantage at buying Russian oil, given the lack of a "better deal" might soon turn to its disadvantage if the United States passes Sanctioning Russia Act of 2025.
The bill, which is set to be taken up by the US senate, proposes imposition of 500% tariffs on all those countries buying energy from Russia.
US Senator Lindsey Graham has publicly pushed for the bill warning that it would prove to be "economic bunker buster" for countries like India and China who have significantly increased their purchase of Russian oil.
"I've got 84 co-sponsors for a Russian sanctions bill that is an economic bunker buster against China, India, and Russia for Russia's brutal invasion of Ukraine.
I think that bill's going to time to vote on that bill," he told NBC News.
— GOP4Ukraine (@GOP4Ukraine)
Earlier, he had warned the two nations that if the bill got through, they would have "nobody to blame but yourself". "To China and India: if you continue to prop up Putin's war machine, you'll have nobody to blame but yourself," he said.
Russia became India's top oil supplier after it significantly increased its imports of Russian crude oil in June, with volumes surpassing combined purchases from major Gulf suppliers like Saudi Arabia and Iraq.
Amid global market instability triggered by Israel's offensive against Iran, Indian refiners are projected to buy 2–2.2 million barrels per day of Russian oil—marking a two-year high.
What is Sanctioning Russia Act of 2025 say?
The bill requires the US President to impose sanctions on Russian leaders, military suppliers, and banks, raise tariffs on Russian imports to at least 500%, and restrict trade with countries dealing in Russian uranium or oil. It also bans US energy exports to Russia.
"The President must increase the rate of duty on all goods and services imported into the United States from countries that knowingly engage in the exchange of Russian-origin uranium and petroleum products to at least 500% relative to the value of such goods and services," one of the provisions of the bill says.
Moreover, it authorizes tough penalties if Russia obstructs peace with Ukraine, violates agreements, or escalates aggression.
Trump has not yet commented on the bill.
Russia and Ukraine have made limited headway in their peace negotiations. During a meeting in Istanbul on Monday, officials from both sides agreed to carry out another prisoner exchange, but no significant progress was made on broader issues.
Meanwhile foreign minister S Jaishankar has, at several moments, defended India's position in buying Russian oil for the lack of a "better deal" saying that it wasn't "necessarily cheap". India has also made its stance clear in the Russia-Ukraine war with Prime Minister Narendra Modi categorically reiterating that it wasn't an "era of war".
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