In a move aimed at increasing economic pressure on Russia, the U.S. Senate is preparing to consider a sanctions and tariffs bill named after late Republican Senator Lindsey Graham, who recently spent his final hours in Kyiv supporting Ukraine’s defense against Russian aggression. The legislation is intended to weaken President Vladimir Putin’s ability to finance the war by targeting key facets of the Russian economy, particularly its energy sector.
As of Wednesday, at least 56 senators had signed on as co-sponsors of the bill, with the number expected to grow. An updated version of the legislation was released on Tuesday and could soon reach the Senate floor for a vote. The bill would authorize the U.S. president to impose tariffs of up to 100% on imports of Russian oil and gas from the top five purchasing countries, a shift from earlier drafts that proposed tariffs as high as 500% and broader application.
To avoid unintended consequences, the bill includes exemptions for countries whose purchases make up less than 15% of Russia’s annual natural gas exports, provided they are actively working to reduce dependence on Russian energy. Under these provisions, major buyers such as China and India are unlikely to qualify for exemptions.
The proposal also seeks to disrupt Moscow’s so-called "shadow fleet," a network of Russian vessels used to conduct clandestine energy shipments. The bill would expand mandatory sanctions to cover more of these ships, as well as entities involved in their operations, including ports, supply companies, and financial backers. Analysts argue that curbing this fleet would enhance Western security, particularly in light of reports that Russian vessels have damaged undersea cables and pipelines in the Baltic Sea. A recent study from the International Institute for Strategic Studies indicated that the shadow fleet may have been used to deploy drones and conduct surveillance near NATO and other sensitive sites in Europe.
Beyond energy, the legislation targets a broad spectrum of Russian political figures, military leaders, oligarchs, state-owned enterprises, financial institutions, and defense industry supporters. It would also prohibit Americans from making new investments in Russia’s economy or purchasing Russian sovereign debt.
The bill grants the U.S. president discretion to waive certain tariff and sanction provisions if deemed in the national interest. Observers note that this flexibility could limit the bill’s impact, especially given former President Donald Trump’s history of seeking rapprochement with Putin. However, this concession was likely necessary to secure Trump’s backing.
The timing of the legislation coincides with intensified Ukrainian military strikes on Russian military, energy, and export infrastructure, as well as Moscow’s recent decision to ban diesel exports through late July due to internal shortages. Trump has also demonstrated somewhat increased support for Ukraine amid shifting battlefield dynamics and Graham’s influence.
Supporters argue that the key to ending the conflict swiftly lies in making the war economically unsustainable for Russia, thereby compelling Putin to seek peace.