President Donald Trump has signed into law the most significant US legislation targeting Moscow since his return to the White House, authorising sweeping sanctions against Russia and granting the executive broad powers to impose tariffs on countries that buy Russian energy.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 — named for the Republican senator who died on 11 July — was signed on 18 September 2026 after passing both chambers of Congress with bipartisan support. The law aims to cut off the financial resources sustaining Russia's war in Ukraine.
What the new law does
The legislation targets Russian officials, the defence and energy sectors, and the so-called "shadow fleet" of oil tankers Moscow uses to circumvent Western restrictions. It also extends the Iran Sanctions Act for another five years.
The measures include:
• Tariffs of up to 500% on US imports from Russia, including oil, natural gas, liquefied natural gas and petrochemical products.
• Authority for the president to impose duties of up to 100% on goods from the five largest importers of Russian crude oil and natural gas.
• Sanctions on foreign networks that help supply Russia's war machine or evade existing penalties.
The tariff powers could affect China and India, the two biggest buyers of Russian crude, as well as other major importers. The law grants the president considerable discretion on implementation, including which countries face duties and at what rates.
Passage through Congress
The Senate approved the measure in July by 86 votes to 11, with Ukrainian President Volodymyr Zelenskyy present in Washington for Senator Graham's funeral. The House of Representatives, controlled by Republicans, gave its final approval on 18 September by 262 votes to 159.
President Trump has stated he would sign the bill, calling it a necessary step to pressure Moscow.
Concerns over executive power
The broad tariff authority created an unusual split among Democrats, who largely support Ukraine but expressed scepticism about handing a president expanded trade powers.
Gregory Meeks, the leading Democrat on the House Foreign Affairs Committee, called the measure "deeply deficient". He argued that White House lawyers had drafted the text to maximise President Trump's power to impose new import taxes on American citizens while minimising any obligation to actually impose new sanctions on Russia or its supporters.
Critics have also raised concerns that the discretion granted to the executive could be used to pressure allies or for political purposes.
How this compares to earlier sanctions
The new law intensifies economic pressure on Russia by directly targeting its energy revenues, the main source of funding for the war. Under the previous administration, sanctions had already constrained Russia's financial system and military supply chains.
Earlier measures produced measurable effects: by early 2026, Russian budget revenues from oil and gas had nearly halved. However, a temporary easing of US sanctions on Russian oil between March and June 2026 allowed Moscow to earn more than $2 billion in additional revenue.
The Graham Act is designed to close those gaps. Proponents estimate that fully enforced secondary sanctions could cost Russia roughly $109 billion annually in lost revenue.
What happens next
Within 30 days of the law taking effect, the president is required to impose the 500% tariffs on Russian imports, with limited exceptions. The impact on Russian energy revenues will depend on how aggressively Washington uses its new powers against countries continuing to buy Russian oil and gas.
For countries like India, which has already reduced some Russian oil purchases under earlier US pressure, the calculation becomes more acute: continue buying discounted Russian crude and risk tariffs on exports to the United States, or seek alternative suppliers.
President Zelenskyy has welcomed the legislation, thanking Trump for the measure.
For Italy, the law's reach is indirect but significant: higher global energy prices could affect Italian businesses and households, while Italian companies with exposure to markets in India, China or Turkey may face new competitive dynamics if those countries redirect trade flows in response to US pressure.
