Washington Chooses Path of Maximum Pressure on Russia's Trading Partners. Who Will Give In?

Washington is increasing pressure on China and India over their trade in Russian energy resources while seeking to block the future development of Russia's Arctic energy sector.

Photo: commons.wikimedia.org by Hannes Grobe, https://creativecommons.org/licenses/by/3.0/

LNG tanker

US Senate Approves Pressure on Russia Through Third Countries

The US Senate has approved a bill introducing what lawmakers describe as "crippling sanctions" against Russia by targeting countries that continue doing business with Moscow. The proposal passed by a vote of 86 to 12 and has been titled the Lindsey Graham* Russia and Iran Sanctions Act of 2026.

Co-author of the bill, Senator Richard Blumenthal, said the sanctions are intended to "punish China and India for financing Russia's war through purchases of Russian energy resources."

While sanctions against the Russian individuals, state entities, and commercial organizations listed in the bill already exist, the new legislation fundamentally changes the enforcement mechanism by transforming it into a global ultimatum for third countries. Under the proposal, penalties would apply not only to the owners of banks, exporting companies, service providers, captains of the so-called shadow fleet, insurers, and port operators involved in transactions with Russia, but also to countries deemed to be "supporting states."

The legislation introduces direct import tariffs of up to 100% on all goods imported into the United States from those countries. As an example, if a Chinese bank is found to have processed transactions involving a Russian bank, Washington could impose a 100% tariff on all Chinese exports to the United States, including electronics, clothing, and industrial equipment. The measure is designed to compel China, India, Turkey, Brazil, and other countries to completely cease economic cooperation with Russia under the threat of severe disruption to their own trade with the United States.

Arctic Energy Projects Become a Primary Target

The bill also establishes automatic sanctions against all future and planned Russian Arctic energy projects, including Arctic LNG 1, Arctic LNG 3, and others, while eliminating exemptions for existing projects such as Yamal LNG. Its stated objective is to block hydrocarbon production on Russia's Arctic shelf for decades, regardless of future market conditions.

A separate section imposes a 500% tariff on all Russian goods imported into the United States, including uranium. These duties would be added to existing tariffs and restrictions. However, the volume of bilateral trade is already limited, with commercial exchanges between the two countries having largely declined.

The list of countries designated as "supporting states" would be reviewed every 180 days. The legislation includes an important provision allowing the US president to reduce tariff levels or waive specific sanctions if Congress receives written confirmation that doing so serves US national interests. The complete removal of sanctions against Russia would require a peace agreement accepted by the Ukrainian authorities and the cessation of hostilities.

China and India Prepare for US Pressure

China possesses significant economic leverage, its own Cross-Border Interbank Payment System (CIPS), and substantial control over global rare earth supply chains, giving Beijing the ability to respond with reciprocal measures.

India is expected to take a firm position, viewing its geopolitical importance to Washington's strategy of containing China as a source of leverage. New Delhi may seek broad exemptions from the proposed restrictions and could reconsider participation in major projects involving Boeing, as well as reduce purchases of American military equipment.

US Consumers Could Bear the Cost

Import tariffs are ultimately paid by consumers in the United States. Even if alternative suppliers replace Chinese or Indian products, those goods are likely to be more expensive.

Trade with Russia within the BRICS framework is already largely conducted in national currencies, reducing reliance on the US dollar. Additional sanctions could accelerate the transition of Russia's international trade toward national currencies, potentially weakening the effectiveness of US tariffs while reducing the dollar's role in global settlements.

Under this approach, Washington is pursuing the objective of increasing pressure on Russia regardless of the potential economic impact on the United States itself.

The Senate has approved the bill only at its first reading. Since the House of Representatives has adjourned until the end of August, the legislation cannot reach the president's desk for signature before September 2026.

* Lindsey Graham is designated in Russia as an extremist and terrorist.