Hungary could be among the countries most affected by a new US sanctions proposal targeting Russia’s energy exports, with a draft bill allowing tariffs of up to 100% on some of the world’s largest buyers of Russian oil and natural gas.
The revised legislation was unveiled in the US Senate on Tuesday and has reportedly received the backing of President Donald Trump. It would expand sanctions against Russia’s political leadership, military, banking sector, energy industry, companies doing business with Russia, and vessels linked to Moscow’s so-called “shadow fleet” used to transport oil, Reuters reports.
Hungary among the largest buyers of Russian energy
Under the proposal, the US government would be authorised to impose tariffs of up to 100% on the five biggest importers of Russian crude oil. According to the draft, those countries are currently China, India, Slovakia, Hungary and Azerbaijan.
Hungary also appears on the list of the five largest importers of Russian natural gas, alongside China, France, Belgium and Japan, potentially exposing it to similar trade measures.
The proposal aims to encourage countries to reduce their dependence on Russian energy and increase financial pressure on Moscow over the war in Ukraine.
Tariffs would not be automatic
The legislation includes several safeguards and exemptions. Countries accounting for less than 15% of Russia’s total natural gas exports would be exempt from the measures. In addition, the US president would have the authority to waive tariffs if he provides justification to Congress.
The list of the largest buyers of Russian oil and gas would also be reviewed every six months, meaning countries could avoid future tariffs by significantly reducing their imports.
Bill scaled back from tougher original proposal
The latest version of the bill is considerably less severe than the original draft. Earlier proposals envisaged sanctions against more than 60 countries purchasing Russian energy, with tariffs reaching as high as 500% for the biggest buyers. The revised legislation reduces the maximum tariff to 100% and narrows the scope of countries directly affected.
The bill was championed by late Republican Senator Lindsey Graham, who reportedly secured support from both the White House and President Trump before his death. Trump later said the administration intended to move forward with the legislation as a tribute to Graham’s efforts.
China rejects the proposed sanctions
China has already voiced strong opposition to the proposed measures. Foreign Ministry spokesperson Lin Jian said Beijing opposes unilateral sanctions that lack a basis in international law or approval from the UN Security Council. He added that China would take all necessary steps to protect the legitimate rights and interests of Chinese companies and citizens if the legislation were enacted.
What happens next?
The proposal is still only a draft and must pass through the US legislative process before becoming law. Even if approved by Congress, any tariffs would depend on how the US administration chooses to implement the legislation and whether presidential exemptions are granted.
For Hungary, however, the proposal shows the international scrutiny of its continued reliance on Russian energy imports at a time when many Western countries are seeking to reduce their dependence on Russian oil and gas.
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