U.S. Legislation Threatens 500% Tariff on Russian Energy Buyers if Peace Talks Collapse

Lindsey Graham (R-SC) and Sen. Richard Blumenthal. US Senator Lindsey Graham (R-SC) and Sen. Richard Blumenthal (D-CT) during a press conference on US-Israel relations on February 17, 2025 at the Kempinski Hotel in Tel Aviv, Israel. Amir Levy/Getty Images

U.S. legislation that would impose hefty tariffs on key Russian exports—if Moscow does not agree to a peace deal with Kyiv—is being hailed as a “significant step” toward ending Vladimir Putin’s brutality, according to the non-profit Razom for Ukraine, in an interview with Newsweek.

Sens. Lindsey Graham (R-S.C.) and Richard Blumenthal (D-Conn.) are the lead sponsors of the bipartisan bill, which aims to impose primary and secondary sanctions against Russia and entities supporting Putin’s aggression if Moscow does not engage in peace talks or undermines Ukraine’s sovereignty.

The bill includes imposing 500 percent tariffs on imported goods from countries that purchase Russian oil, gas, uranium, and other products.

Svitlana Romanko, founder of Razom for Ukraine, told Newsweek on Tuesday that the move could deal a serious blow to Russia’s financing of the war. Newsweek has contacted the Kremlin for comment.

Why It Matters:
President Donald Trump has expressed growing impatience with what he perceives to be Russian leader Vladimir Putin’s delaying tactics in peace talks over the war in Ukraine. Amid concerns that the Trump administration could give Moscow an advantage in peace negotiations, the bill, sponsored by 25 Republicans and 25 Democrats, signals an unusual level of cross-party consensus against Putin’s aggression.

What To Know:
Sens. Graham and Blumenthal are lead sponsors of “The Sanctioning Russia Act of 2025,” which seeks to impose primary and secondary sanctions on Russia if it does not agree to a long-lasting peace with Ukraine. The bill is backed by a group of 50 Democratic and Republican lawmakers and also seeks to impose a 500 percent tariff on imported goods from countries purchasing Russian oil, gas, and uranium.

In a press release, the senators explained that the sanctions were designed to be hard-hitting because “the dominating view” in the U.S. Senate is that Russia is the aggressor in Ukraine.

Trump has pledged to end the war quickly but is becoming increasingly frustrated with Putin for stalling an end to the conflict. The Russian president rejected a Washington proposal for a ceasefire and added conditions to a Black Sea ceasefire plan last week, which was followed by continued Russian missile and drone strikes.

The senators who signed the bill also expressed their frustration with Putin over stalled peace efforts.

What People Are Saying:
Razom for Ukraine CEO, Romanko, stated that the bill would be a significant step toward ending Russia’s ability to fund its continuous aggression and brutality. “These measures could deal a serious blow to the Kremlin’s fossil fuel revenues, which remain one of its primary sources of war financing,” she added.

Romanko also urged the U.S. to go further and immediately ban American firms like oil service company Schlumberger (SLB) from providing services to Russia’s fossil fuel sector. Last year, U.S. lawmakers questioned why SLB had been granted a waiver to work in Russia.

Romanko added that only a complete shutdown of Russian oil and gas revenue can effectively weaken Putin’s desire for war and bring peace to Ukraine.

Imogen Payter, Director of UK Friends of Ukraine, told Newsweek: “It is heartening to see that, at a time when U.S. support for Ukraine has been waning, there is a bipartisan attempt to pass primary and secondary sanctions against Russia if it fails to stop its war of aggression against Ukraine.”

What Happens Next:
The House version of the legislation is also being introduced with the support of both Republicans and Democrats, which will add pressure on Putin. Meanwhile, the Trump administration is likely to continue its push for a deal with Russia in the coming weeks.

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