A bipartisan bill with overwhelming Senate support would hand President Trump the power to slap tariffs as high as 500% on countries that continue buying Russian energy.

The Sanctioning Russia Act, introduced by the late Sen. Lindsey Graham (R-SC) and Sen. Richard Blumenthal (D-CT), targets nations purchasing Russian oil, gas, and uranium, or those helping Moscow dodge existing sanctions. The bill has gathered 84 to 85 Senate co-sponsors, a bipartisan supermajority.

What the bill actually does

The legislation would authorize, not mandate, Trump to impose massive tariffs on major Russian energy importers. The primary targets here are China and India, which together purchase approximately 70% of Russian oil and gas exports.

The bill was first introduced on April 1, 2025. The Trump administration indicated its willingness to back a revised version of the legislation around July 2026, with Graham announcing the agreement shortly before his death. The timing has given the bill additional momentum, with lawmakers positioning a potential vote as a tribute to Graham’s final legislative push.

Graham viewed the Sanctioning Russia Act as a legacy item, and with that kind of co-sponsor count, it’s clear his colleagues largely agreed with the approach.

Global energy markets face a reckoning

If enacted and actually enforced at anywhere near those levels, countries that currently rely on discounted Russian crude, most notably China and India, would face a stark choice: find alternative suppliers at higher prices, or absorb punishing US tariffs on their exports.

The immediate consequence would likely be a spike in oil and gas prices as buyers scramble to replace Russian supply. For energy-importing economies, particularly in Europe and Asia, this could reignite inflationary pressures. Higher energy input costs flow through to manufacturing, transportation, and food production.

Russia, meanwhile, would face a dramatic contraction in its most important revenue stream. Oil and gas exports have been the financial backbone of Moscow’s war effort in Ukraine. Cutting off 70% of that customer base, even partially, would represent one of the most aggressive economic pressure campaigns in modern history.

Why crypto markets should be paying attention

Energy prices are one of the most reliable transmission mechanisms between geopolitical events and broader financial markets. When oil spikes, inflation expectations rise. When inflation expectations rise, central banks get hawkish. When central banks get hawkish, risk assets, including crypto, tend to feel the pressure.

There’s also the mining angle. Bitcoin mining is an energy-intensive operation, and significant increases in electricity costs could squeeze margins for miners worldwide. Publicly traded mining companies, which have become a popular proxy for Bitcoin exposure, would be particularly vulnerable to sustained energy price increases.

The bill explicitly targets countries aiding Moscow in dodging sanctions. Crypto has been repeatedly cited by regulators and enforcement agencies as a potential sanctions evasion tool. A bill this aggressive on the enforcement side could bring renewed scrutiny to crypto platforms operating in jurisdictions that maintain close economic ties with Russia.

A bill with 85 Senate co-sponsors and administration backing isn’t idle speculation. It’s a policy that has a real path to becoming law. Investors should be watching not just whether the bill passes, but how China and India respond. If those nations begin pre-positioning their energy sourcing ahead of potential tariffs, the market impact will start before any legislation is signed.