US Senate passes sweeping Russia sanctions Bill targeting Putin’s energy war chest

WASHINGTON - The US Senate on Aug 7 passed a sweeping sanctions package targeting Russia’s energy revenues.

The legislation now heads to the House of Representatives, though a vote there will not take place until at least early September due to the congressional summer recess.

The package would impose sanctions on Russian officials, oligarchs, financial institutions and the so-called shadow fleet used to evade restrictions on Moscow’s oil exports.

It would also allow President Donald Trump to set tariffs of up to 500 per cent on Russian imports, including gas and oil.

Crucially, the sanctions would enable Trump to impose tariffs of up to 100 per cent on goods from major purchasers of Russian oil and gas, including countries such as China and India.

Supporters say choking off energy income is essential to weakening Russian President Vladimir Putin’s ability to finance the war in Ukraine, now in its fifth year.

If adopted into law, Putin himself would be among those targeted by the sanctions, as well as other top officials.

The Bill was named after the late Senator Lindsey Graham, who died on July 11 after spending more than a year building support for it.

Shortly before his death, Graham announced he had reached an agreement with the White House on a revised version of the text, including the extension of existing sanctions authority aimed at restricting funding for Iran’s energy and weapons sectors.

For the late senator’s sister Darline Graham, who replaced him in Congress, the final adoption of the Bill will not only honour her brother, “but will also promote peace by cutting off the funding fueling Russia’s war machine.”

Democratic Senator Jeanne Shaheen, a member of the Senate’s Foreign Relations Committee, said the Bill “hits Russia’s energy and financial sectors very hard.”

“Vladimir Putin only understands strength, and he only responds to pressure,” Shaheen added. “This legislation represents our best opportunity to finally bring Russia’s war machine to its knees and to force Putin to the negotiating table.”

Russia’s embassy in the United States had condemned the Bill, saying it “does the current US administration a disservice.”

Moscow is also under increased European pressure, with the EU agreeing in July to a new round of sanctions - albeit watered down from harsher earlier proposals.

The package - the 21st by the EU since Moscow’s 2022 invasion - was held up by a raft of objections by member states to various proposed elements.

It focuses on freezing the level of an oil price cap to try and prevent Moscow from cashing in on a surge of oil prices due to the Iran war.

Diplomats said the final hurdle was overcome after Greece was granted an exemption allowing shipping firms to carry on transporting Russian liquefied natural gas from the Arctic.

The new package also targets Moscow’s financial sector and crypto firms, and blacklists scores more Russian officials over the war.

However, a proposed sweeping visa ban was shelved. AFP