Graham’s Act: Key provisions

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 primarily aims to inflict economic damage on Russia by targeting its energy exports. The section on ‘Iran’, however, also extends the Iran Sanctions Act of 1996 till 2031 and calls for continuation of strict financial enforcement measures over Iran’s energy revenues, weapons programs and proxy funding.[iv] The key argument presented by supporters of this bill has been that Russia is using its revenues generated through the sale of its energy resources to fund its military operations in Ukraine. Compared with the US’s previous measures to impose sanctions directly via Executive Orders, this new act is a statutory federal law that gives the US President greater power and strong support from Congress.

The primary aspects of this ‘Act’ provide the US President the authority to impose import duties of up to 500 per cent on all goods originating from Russia. Secondly, the Act mandates strict property-blocking sanctions/measures on foreign shipping vessels that knowingly transport Russian oil, coal, or uranium. It also targets ships that attempt deceptive maritime practices, such as lacking legitimate insurance or actively violating the international price cap mechanism. Third, the Act also bans US individuals and institutions from investing in Russia’s energy sector or purchasing Russian sovereign debt. It further forbids US entities from providing specified corporate, financial, or technical services to entities tied to the Russian government.[v]

The secondary aspect of this ‘Act’ focuses on Third-Party Nations. This ‘Act’ provides the US President with the power to impose tariffs of up to 100 per cent on the five largest importer states (by volume) that continue to purchase Russian crude oil, petroleum products, or natural gas. Such 100 per cent tariffs would apply to all goods imported into the US from the targeted country that continues its energy trade with Russia.

Unlike the Executive Orders, under this new ‘Act’, if the US president decides to lift or significantly relax any restrictions on Russia, he can do so by providing formal certifications and reports to Congress verifying that Russia has halted hostilities and accepted a formal peace agreement with Ukraine. The ‘Act’ also grants the US President explicit authority to waive secondary tariffs if it is in the ‘US’ national interest’. Lastly, the Act also contains a ‘sunset clause’, which means most of the Russia part that includes the 15 per cent rule, the secondary tariffs, and the proposed penalties on Russian banks will automatically expire five years after enactment........

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