The US Senate has overwhelmingly approved a major new Russia sanctions package that could impose tariffs of up to 100 per cent on countries buying Russian oil and natural gas, potentially putting Hungary in the firing line.
The bill, named in honour of the late Republican Senator Lindsey Graham, passed by an 86-11 vote on Friday. According to CNN, it would introduce mandatory sanctions against Russian President Vladimir Putin, Russian oligarchs and state-owned companies, as well as foreign businesses supporting Russia’s defence industry.
However, one of the most significant elements of the legislation is the possibility of imposing tariffs of up to 100 per cent on goods imported into the United States from some of the largest buyers of Russian energy.
Hungary could be among the countries affected
The legislation targets the five largest importers of Russian crude oil and natural gas. China and India are expected to be the most significant countries affected, but Hungary could also find itself on the list.
Hungary remains heavily dependent on Russian energy. According to European Commission data, Russian gas accounted for around 74 per cent of Hungary’s gas imports in 2025. The country’s dependence on Russian oil is even greater, with Russian crude reportedly accounting for more than 90 per cent of Hungary’s total oil imports last year.
The proposed legislation could therefore create a significant problem for Budapest. There is, however, an important potential exemption concerning natural gas. Countries importing less than 15 per cent of Russia’s total gas exports could avoid the additional tariffs if they are also taking significant steps to reduce their dependence on Russian gas.
This distinction is important for Hungary. Although Russian gas makes up a large share of Hungary’s own imports, Hungary’s total purchases represent only a fraction of Russia’s overall gas exports. The country could therefore potentially meet the first condition for an exemption. The second condition could prove more difficult.
Budapest would need to show it is reducing Russian energy dependence
The European Commission has acknowledged that Hungary has signed long-term gas supply agreements with American and European companies. Once deliveries begin, these contracts could cover around 12 per cent of Hungary’s annual gas consumption.
Nevertheless, Brussels has assessed Hungary’s overall progress in reducing its dependence on Russian energy as limited. That could become crucial if the US legislation is ultimately adopted in its current form.
Washington would have to decide whether Hungary’s efforts to diversify its gas supplies are sufficient to qualify for the exemption. In other words, simply arguing that Hungary does not import 15 per cent of Russia’s total gas exports may not be enough.
The situation is potentially more serious when it comes to oil. Unlike natural gas, the proposed legislation does not provide a similar 15 per cent exemption for Russian crude oil. Hungary imported roughly 5–5.5 million tonnes of Russian crude in 2025, equivalent to approximately 100,000–110,000 barrels a day.
Although the temporary shutdown of the Druzhba oil pipeline has forced Hungary to seek alternative supplies this year, Russian crude remains by far the dominant source of oil for the country.
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Trump could still grant exemptions
There are several factors that could soften the impact of the legislation. The proposed tariffs would initially target countries that knowingly continue making new purchases of Russian oil or gas from the 30th day after the legislation takes effect.
The US President would also retain the power to grant exemptions to individual countries, provided the administration explains why doing so would be in the interests of the United States. This could become particularly relevant in Hungary’s case.
The former Hungarian government has previously claimed that Budapest secured a full and open-ended exemption from US sanctions affecting Russian energy delivered through the TurkStream gas pipeline and the Druzhba oil pipeline.
However, it’s unclear whether that earlier arrangement would automatically protect Hungary from the new tariff mechanism. The proposed legislation could create a separate legal framework specifically targeting countries that continue buying Russian energy.
A very different bill from the original proposal
The measure has changed substantially during more than a year of negotiations. The original version unveiled in 2025 was considerably tougher and reportedly envisaged minimum tariffs of 500 per cent, with far fewer exemptions. The latest version reduces the potential tariff to 100 per cent and gives the US Trade Representative, Jamieson Greer, a key role in determining the final tariff rate.
The bill also gives the Trump administration considerable discretion over whether and how aggressively to implement the measures. Some senators had raised concerns that the legislation could hand the US administration excessive power to impose tariffs. An amendment seeking changes to the tariff provisions was ultimately rejected.
Zelenskyy watched the Senate vote
The timing of the vote carried particular significance. Graham had spent more than a year working on the sanctions package and announced in Kyiv, just one day before his death, that an agreement had finally been reached with the White House and his Senate allies.
Following his death, colleagues described the legislation as one of his most important political achievements. Ukrainian President Volodymyr Zelenskyy attended Graham’s funeral in Washington and subsequently met senators at the Capitol. He also watched the procedural vote from the Senate gallery.
Zelenskyy has argued that stronger sanctions against Russia could both restrict Moscow’s ability to finance its war and send an important message to Ukraine and Europe.
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The bill still needs House approval
Despite the Senate vote, the new sanctions are not yet law. The legislation must still pass the US House of Representatives before it can reach the President. The House is currently on its summer recess and is not expected to return until September.
This gives Hungary and other potentially affected countries additional time to lobby Washington and seek changes or exemptions. For Budapest, however, the Senate vote is already a warning sign: if the legislation becomes law in anything close to its current form, Hungary’s continued reliance on Russian oil and gas could expose it to significant new US trade pressure.
If you missed it: US could hit Hungary with up to 100% tariffs over Russian oil and gas imports
