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The "hellish sanctions" against Russia have quintupled

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The text has now been sent to the White House for signature or a potential veto by Donald Trump

The decision now rests with US President Donald Trump regarding one of the strictest packages of sanctions against Russia approved by the American Congress in recent years. The House of Representatives approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on September 16 by 262 votes to 159, accepting the amendments previously approved by the Senate. The Senate had voted on the bill in August with 86 votes in favor and 11 against. The text has now been sent to the White House for signature or a potential veto by Donald Trump. The package bears the name of the late senator Lindsey Graham, who had played a leading role for more than a year in the negotiations shaping its final terms.

What the bill provides

The new provisions significantly expand the powers of the US government to impose economic measures against Russia and those it considers to be supporting critical sectors of the Russian economy. Among other things, sanctions are foreseen against Russian officials, financial institutions, energy and defense sector companies, as well as vessels that the US considers part of the so-called "shadow fleet" used to bypass restrictions on oil exports. Of particular importance is the provision allowing the US president to impose tariffs of up to 100% on products from countries ranked among the largest importers of Russian oil or natural gas, or considered major hubs for circumventing existing sanctions. The measure could primarily affect major buyers of Russian energy such as China and India. At the same time, the text retains a separate option to increase US tariffs by up to 500% on certain products imported directly from Russia, including oil, natural gas, petroleum products, petrochemicals, and coal.

From 500% to 100% for third countries

The initial political proposal promoted by Lindsey Graham provided for much higher secondary charges on countries that continued to buy Russian energy. During the long negotiation process in Congress, however, the upper limit for tariffs on third countries was ultimately set at 100%. This change reflects, among other things, concerns about the impact that much higher tariffs could have on US trade relations with major economies and on international energy markets.

58 Democrats voted in favor

Despite bipartisan support, the bill did not pass without reactions. In the House, 203 Republicans and 58 Democrats voted in favor. Some Democrats expressed reservations because the provisions grant Donald Trump expanded discretionary authority in imposing tariffs, fearing that these specific powers could also be used in the context of other trade disputes. Speaker of the House Mike Johnson argued, for his part, that the passage of the bill sends a message of unity and provides the US administration with additional means of pressure to pursue an end to the war.

Zelensky: Additional tool of pressure on Moscow

Ukrainian President Volodymyr Zelensky had openly favored the approval of the bill and had repeatedly discussed the issue with US senators. The Ukrainian side considers that the new sanctions can restrict the revenues that Russia uses to finance the war and strengthen negotiating pressure on Moscow.

Kremlin's reaction

Moscow reacted negatively to the passage of the bill. Kremlin spokesman Dmitry Peskov characterized the new sanctions as "unfriendly acts" and maintained that, if they come into force, they will further complicate efforts for a political settlement of the war in Ukraine. The US side and the Ukrainian government, on the contrary, argue that increasing economic pressure can raise Russia's incentives for negotiations.

The big question is implementation

Despite the scope of the bill, whether the new powers will be used in practice remains a critical question. The legislation allows Donald Trump to impose heavy tariffs on major trade partners of the United States. This does not mean, however, that the maximum rate will be automatically activated in every case. India has already warned that potential US tariffs due to purchases of Russian oil could strain bilateral relations, while Indian refineries are asking the government to seek exemptions or special arrangements. Even more complex is the case of China, which is one of the largest buyers of Russian energy while simultaneously being one of the most important trading partners of the United States. Imposing extremely high tariffs could consequently transform a tool of pressure against Moscow into a broader trade confrontation with Beijing.

Risk to oil prices

Analysts also point out that the attempt to abruptly restrict Russian oil exports carries risks for the international market. If large quantities of Russian crude are withdrawn from global supply without being quickly replaced by other producers, upward pressure could be exerted on energy prices. For this reason, the effectiveness of the new sanctions will depend not only on how strict they are on paper, but also on how the Trump administration chooses to implement them against countries like China and India.

The next move belongs to Trump

With the completion of the parliamentary process, the political weight now shifts to the White House. If Donald Trump signs the bill, his administration will gain a new and particularly broad arsenal of economic measures against Russia and its largest trading partners in the energy sector. The essential question, however, is not only whether the new sanctions will become law, but how far the US president will choose to go in their implementation—especially when potential side effects touch upon relations with China and India, international trade, and global energy prices.

www.bankingnews.gr

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