WHAT YOU NEED TO KNOW

  • Congress approved legislation targeting Russian energy revenues and countries that continue purchasing Russian oil and gas.
  • The bill permits duties of up to 100% on goods from covered countries and up to 500% on Russian imports.
  • Trump would retain broad authority to determine tariff rates, covered countries, and sanctions waivers.
  • The measure targets Russia’s shadow fleet, major LNG projects, and foreign parties supporting energy production or sanctions evasion.

US President Donald Trump is poised to sign legislation designed to increase economic pressure on Russia over its war in Ukraine. The measure targets Russian oil and gas revenues, along with countries that continue purchasing Russian energy.

The bill mandates broad sanctions and tariff measures, but it also gives Trump extensive control over how those requirements are applied. The administration would determine which countries face tariffs, what rates apply, and whether particular sanctions provisions should be waived.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 is named for the late South Carolina senator who championed the legislation. The House passed the measure Sept. 16 by a vote of 262 to 159 after the Senate approved it 86 to 11 in August.

The legislation now awaits Trump’s signature. The White House has said the administration supports the measure and would recommend that the president sign it into law.

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The act directs the president to impose sanctions and tariff measures targeting Russian energy exports and countries involved in sanctions evasion. However, Trump “may waive the application” of sanctions provisions, restrictions, or duties if he certifies to Congress that a waiver is “in the national interest of the United States” and explains the decision.

That authority leaves important implementation decisions with the administration even as the legislation requires sanctions. Presidential determinations would shape which governments, companies, and individuals ultimately fall within the measure’s reach.

Within 30 days of enactment, the president would be required to impose duties of up to 100% on goods imported from countries covered by specified categories. Those categories involve purchases of Russian oil and gas, as well as activities that facilitate evasion of existing sanctions.

The covered countries would include those ranked among the five largest importers of crude oil or natural gas originating in Russia by total volume during the 12 months before enactment. Countries meeting separate criteria for facilitating Russian sanctions evasion also could face duties.

The administration would be required to reassess the covered countries every 180 days. That recurring review would allow the government to revise its determinations as trade patterns and activities covered by the legislation change.

A country would be exempt from duties related to natural gas if its Russian gas imports represented less than 15% of Russia’s total exports during the applicable period. The country also must have taken “significant steps” to reduce those imports.

The measure separately covers countries whose foreign persons knowingly conduct transactions, activities, or services that “circumvent or assist any third party to circumvent” sanctions. The administration would decide which countries satisfy those criteria.

Another provision directs the president to increase duties on all goods imported from Russia to as much as 500%. The listed products include crude oil, natural gas, LNG, petroleum products, and petrochemicals.

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Those duties would be added to any other applicable duties, fees, taxes, and charges. The resulting tariff structure would therefore operate alongside other import costs already applied to covered Russian goods.

The legislation also targets Russia’s shadow fleet and foreign persons involved in supporting Russian energy production or sanctions evasion. Covered parties could include vessel owners, operators, managers, insurers, and others engaged in activities addressed by the act.

Major Russian LNG projects identified in the bill include Yamal LNG and Arctic LNG 1, 2, and 3. Leaders, senior executives, directors, and controlling shareholders of covered entities also could be subjected to sanctions.

Beyond the provisions focused on Russia, the measure extends the Iran Sanctions Act of 1996 through 2031. That extension preserves US sanctions authority covering investment in Iran’s energy sector while the administration prepares to implement the legislation’s broader Russian energy provisions.