Bill Would Sanction Buyers of Russian Oil, Provide for Exceptions
A bipartisan group of four senators introduced a bill Dec. 16 to impose additional sanctions targeting Russia’s oil revenue.
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The Decreasing Russia Oil Profits Act, or Drop Act, would sanction foreign entities and individuals who buy or facilitate the purchase of Russian oil. The lawmakers said that while the Trump administration sanctioned two major Russian oil companies in October, Russia has already found ways to circumvent those designations (see 2510220050).
The bill would allow the executive branch to apply two of four exceptions globally. One exception would allow the executive branch to forgo sanctions if a buyer of Russian oil pays a per-barrel fee to Ukraine. Two other exceptions would allow sanctions to be skipped if a purchasing country agrees to significantly reduce Russian oil purchases over time or provide significant military or economic support to Ukraine. A fourth exception would let the executive branch temporarily exempt oil from certain Russian ports from sanctions, allowing it to ramp up pressure over time as needed.
The exceptions wouldn't be available to those who pay above the international price cap on Russian oil.
The Drop Act is led by Sen. Dave McCormick, R-Pa., and co-sponsored by Senate Banking Committee ranking member Elizabeth Warren, D-Mass., and Sens. Chris Coons, D-Del., and Jon Husted, R-Ohio.
Separately, House lawmakers continued negotiations on a Russia sanctions and tariff bill that has been pending in Congress since April. House Foreign Affairs Committee ranking member Gregory Meeks, D-N.Y., is seeking several changes to the Sanctioning Russia Act, which would impose additional sanctions on Russia and new tariffs on countries that buy its oil and gas (see 2512040024). Meeks wants an alternative approach to tariffs, as well as arms for Ukraine.
House activity on the Sanctioning Russia Act intensified after Senate Majority Leader John Thune, R-S.D., said in late November that the House likely would need to act first on the bicameral legislation because the bill is a “revenue measure” (see 2511190053).