WeVote
Log In

Bill

Bill

HR 7506

Decreasing Russian Oil Profits Act of 2026

119th Congress Introduced by Steve Cohen and 7 co-sponsors

Imposes sanctions on foreign buyers and financiers of Russian crude oil and products to curb Russia’s oil revenues, with limited exceptions and a five-year sunset.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 7506

Overview

  • Bill: HR 7506
  • Session: 119th Congress
  • Title: Decreasing Russian Oil Profits Act of 2026
  • Purpose: Impose targeted sanctions on foreign persons involved in buying, financing, or facilitating trade in crude oil or petroleum products of Russian Federation origin, with a framework for exceptions and oversight. The act aims to reduce Russian oil revenues by constraining international trade and providing a mechanism to redirect or monitor funds, including specific provisions related to Ukraine.

Main Purpose and Intent

  • To sanction foreign individuals and entities that purchase, import, or facilitate transactions involving Russian-origin crude oil and petroleum products.
  • To leverage the International Emergency Economic Powers Act to block and prohibit transactions in the property of designated foreign persons.
  • To incorporate specific exception frameworks to allow certain international arrangements (e.g., isolating Russian funds to support agricultural or humanitarian needs, or to support Ukraine) under tightly controlled conditions.
  • To establish a five-year sunset for the sanctions, with ongoing review mechanisms.

Key Provisions and Changes

  • (a) Scope of Sanctions

    • Requires the President to impose sanctions 90 days after enactment on any foreign person determined by the Treasury in consultation with the State Department to:
    • Purchase/import Russian-origin crude oil or petroleum products.
    • Knowingly facilitate related financial transactions.
    • Materially assist/sponsor/provide material support to relevant activities.
    • Serve as CEO or board member of an entity involved in these activities.

  • (b) Sanctions Mechanism

    • Uses all powers under the International Emergency Economic Powers Act (IEEPA) to block and prohibit transactions in the property and interests of designated foreign persons in or involving the United States.

  • (c) Exceptions Framework

    • The President may apply up to two types of exceptions to sanctions. Subtypes include:
    • Country Isolating Funds Exception: Funds owed by a country to Russia or Russian sellers can be directed to an account in that country and used only for agricultural commodities, food, medicine, or medical devices, with certification and ongoing renewal every 180 days.
    • Ukraine Account Exception: Funds deposited into a President-established account for Ukraine, with use limited to specified purposes and oversight on transfers, including transparency and accountability certifications; transfers require congressional notification and may be blocked by joint resolution.
    • Countries Supporting Ukraine Exception: Countries that provide significant economic or military support to Ukraine may have sanctions relief for purchases of Russian oil/products, with renewal every 180 days.
    • Temporary Port-Specific Exceptions: For imports from specific Russian ports for up to 270 days post-enactment, with justification to congressional committees; exception cannot cover ports accounting for more than half of Russia’s 2024 oil export capacity.
    • Additional rule: Any activity involved in oil/products sold above a price cap (as determined by the Treasury) related to maritime transport is not exempt from sanctions.

  • (d) Sunset

    • All provisions and sanctions terminate five years after enactment.

  • (e) Definitions

    • Clarifies terms such as agricultural commodity, appropriate congressional committees, defense article, foreign person, knowing, medical device, medicine, and United States person.

Who Would Be Affected

  • Foreign persons (individuals or entities) involved in:
    • Purchasing/importing Russian-origin crude oil or petroleum products.
    • Facilitating financial transactions related to such activity.
    • Providing material support to sanctioned activities.
    • Serving as CEO or board member of entities engaged in these activities.
  • U.S. government agencies involved in enforcement and oversight, including:
    • Department of the Treasury
    • Department of State
    • Congress (via notification and certification provisions)
  • Countries that may benefit from sanctioned relief under limited exception scenarios, including those that:
    • Isolate Russian funds to support non-Russian transactions (e.g., agriculture, medicine).
    • Provide significant support to Ukraine (economic or military).

Procedural and Timeline Aspects

  • Enactment triggers sanctions 90 days after passage.
  • Congress oversight features:
    • Required notifications to committees for certain fund transfers or expenditures.
    • Certifications of transparency and accountability before funds can be transferred from Ukraine-related accounts.
    • Opportunity for joint resolutions to block transfers.
  • Renewal/monitoring:
    • Certain exceptions require 180-day renewal certifications to remain in effect.
    • Regular reporting and certification requirements for compliance and oversight.
  • Sunset:
    • The act’s sanctions and authorities expire five years after enactment.

Potential Impact (High-Level)

  • Reduces Russian oil profits by constraining international demand and financing mechanisms.
  • Creates a structured pathway for targeted sanctions with defined exceptions to balance foreign policy goals (Ukraine support) and humanitarian considerations.
  • Introduces ongoing congressional oversight and transparency requirements to monitor fund flows and ensure accountability.
  • The five-year sunset encourages periodic reevaluation of effectiveness and evolving geopolitical conditions.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.