From 500% to 100%: US eases tariff threat against India, China for Russian oil buys

The US Senate has updated a Russia sanctions bill by cutting the proposed tariff on buyers of Russian oil and gas. The change could ease pressure on major importers while giving Donald Trump room to waive penalties.

In Short

• Tariff on Russian oil buyers reduced to 100% from 500%
• Bill targets top five Russian oil and gas buyers only
• President Trump can waive sanctions if in US national interest

The United States has proposed changes to a Russia sanctions bill that could offer some relief to India and China, the two biggest buyers of Russian crude oil, reported news agency Reuters.

Republican and Democratic senators on Tuesday introduced an updated version of the legislation that lowers the maximum tariff on countries buying Russian oil and gas to 100%, down from the earlier proposal of a blanket 500% tariff.

The revised bill aims to pressure countries to reduce their dependence on Russian energy while imposing sanctions on Russian officials.

The latest version also gives US President Donald Trump the power to waive the sanctions if he believes doing so is in the US national interest.

India is among the world's largest importers of Russian crude, along with China. Under the revised proposal, the maximum tariff would apply only to the top five buyers of Russian oil and natural gas, rather than all importing countries as envisaged in the earlier draft.

The bill, originally introduced by the late Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, has bipartisan backing. Senate aides said it currently has 26 co-sponsors and more support is expected as it moves through Congress. According to Reuters, the revised version is seen as having a clearer path to passage than the original proposal.

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