Trump signs sanctions law targeting Russia’s oil exports; India says it will continue diversified sourcing

US President Donald Trump has signed into law a major sanctions bill designed to pressure Moscow over its war in Ukraine. The legislation takes direct aim at Russian President Vladimir Putin, senior officials, major banks, and the country's energy and defence sectors. It also targets Moscow’s "shadow fleet" of oil tankers used to bypass Western trade restrictions. In a move with broad international consequences, the law grants Trump authority to slap tariffs of up to 100 per cent on major foreign buyers of Russian crude oil and natural gas.

Measures target energy exports and foreign buyers

The legislation is crafted to starve Moscow of the financial resources needed to maintain its military campaign, four years after invading Ukraine. Under the new rules, Trump is directed to consider maximum 100 per cent tariffs on the five biggest importing countries of Russian energy. An exception is provided for nations that rely on Russia for less than 15 per cent of their natural gas exports and have demonstrated significant efforts to reduce those purchases.

The bill passed Congress this week with broad bipartisan support, recording an 86-11 vote in the Senate and 262-159 in the House of Representatives. The measure marks the final legislative effort of the late Republican Senator Lindsey Graham, who unexpectedly died in July after returning from Ukraine. Graham, a close friend of Trump, drafted the bill alongside Democratic Senator Richard Blumenthal over more than a year of delicate political bargaining. Trump eventually gave his approval after securing a five-year extension of existing US sanctions on Iran and ensuring the White House retained sufficient flexibility over how penalties are applied.

Global reactions and impact on international trade

The legislation has immediate global relevance, particularly for major energy importers. Responding to the development on Thursday, India stated that it would continue purchasing oil "through diversified sourcing".

The signing also comes just a week before Trump is set to meet Chinese President Xi Jinping in Washington. Meanwhile, Ukrainian President Volodymyr Zelensky welcomed the move, thanking American lawmakers and describing the passage of the legislation as symbolic.