Congress Passes New Russian Sanctions Bill Providing Additional Tariff Authority To Address Countries That Purchase Russian Energy, Facilitate Evasion Of Russian Sanctions

On Wednesday, September 16, the U.S. House of Representatives passed H.R. 5334, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, by a vote of 262-159. The bill – which the Senate approved by a vote of 86-11 in early August – now goes to the President, who is expected to sign it into law as soon as today.

H.R. 5334 directs the President to increase duties, within 30 days of enactment, on imports from Russia as well as on imports from countries that are significant purchasers of Russian energy. Notably, however, Section 115 of H.R. 5334 provides Presidential authority to waive the application of both the sanctions and tariff provisions. Additionally, the Russian sanctions and tariff provisions will sunset five years after enactment.

Until this week, the outlook for House consideration had been uncertain. Many Democrats who supported the additional sanctions provisions nonetheless opposed the bill, citing concerns over its delegation of broad Presidential tariff authority. The bill was passed with bipartisan support despite those objections.

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For imports from the Russian Federation, the President is directed to increase tariffs to a rate of up to 500 percent ad valorem. While the bill mandates a tariff increase, the President retains discretion to set the rate at any level up to the 500 percent ceiling. The duties are applicable to imports of all goods, including energy products, and are to be applied on top of any other duties, fees, taxes, exactions, or charges including AD/CVD duties as well as duties imposed under Sections 122, 201, and 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.

As noted above, in addition to duties on Russian imports, the bill creates a secondary tariff mechanism targeting countries that continue to purchase Russian energy or facilitate sanctions evasion.

For imports from select countries that purchase Russian-origin crude oil or natural gas, or facilitate evasion of Russian oil sanctions, the President is directed to increase tariffs to a rate of up to 100 percent ad valorem. Again, the 100 percent tariff rate is a ceiling. As with the tariffs applicable to Russian imports, these duties are applicable to all goods and would stack on top of existing duties imposed under other authorities.

Under H.R. 5334, countries to be subject to the additional duties due to their purchases of Russian energy are countries that:

• (1) knowingly made new purchases of crude oil or natural gas that originated in the Russian Federation beginning 30 days after the date of enactment; and (2) were among the five largest importers, by total volume, of crude oil or natural gas that originated in the Russian Federation during the most recent 12-month period preceding the date of the enactment; or
• were among the top five countries facilitating Russian oil sanctions evasion during the most recent 12-month period preceding the date of the enactment. 

A country identified as a top importer of Russian energy (but not a country targeted for facilitating sanctions evasion) may be exempt from duties on its natural gas imports if (1) its total imports of Russian natural gas during the 12-month period were less than 15 percent of Russia’s total natural gas exports during that period and (2) it has taken significant steps to reduce its imports of Russian natural gas.

A recent Reuters article, citing a Congressional aide, reported that the top five purchasers of Russian crude are China, India, Slovakia, Hungary, and Azerbaijan and the top five importers of Russian natural gas are China, France, Japan, Hungary, and Belgium. Reuters reports that the natural gas specific exemption may apply to Japan, France, Hungary, and Belgium.

The bill directs the United States Trade Representative (“USTR”) — in consultation with the Secretary of State and the Secretary of Energy — to determine every 180 days the countries that are the five largest importers of Russian crude oil (HTS code 2709) and the five largest importers of Russian natural gas (HTS code 2711). 

Not later than ten days before imposing or modifying duties, the President or USTR must submit a written justification to Congress providing a substantive rationale and methodology for the determination of the rate of duty.

At any time after the initial imposition of duties, USTR is directed to modify or adjust duties to a rate greater than zero and up to 100 percent upon submitting a written determination to Congress that a country has taken significant steps to either increase or decrease the importation, sale, supply, transfer, or purchase of Russian crude oil or natural gas.