Decreasing Russian Oil Profits Act of 2026
- Bill Number
- H.R. 7506
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2026-02-11: Referred to the House Committee on Foreign Affairs.
- Last Updated
- 2026-06-24T08:07:34Z
AI-Generated Summary
Purpose
The Decreasing Russian Oil Profits Act of 2026 aims to reduce Russia's revenue from exporting crude oil and petroleum products by imposing economic sanctions on foreign individuals and entities involved in buying, importing, or facilitating such trade. This is intended to pressure Russia economically, particularly in response to its aggression against Ukraine.
Key Provisions
- Sanctions Imposition: Starting 90 days after the bill becomes law, the President must impose sanctions on any foreign person (non-U.S. individual or entity) determined by the Secretary of the Treasury (in consultation with the Secretary of State) to be involved in:
- Purchasing or importing Russian-origin crude oil or petroleum products into any country.
- Knowingly facilitating related financial transactions.
- Providing material support to those activities.
- Serving as a chief executive officer or board member of an entity engaged in such activities.
- Type of Sanctions: These involve blocking and prohibiting all transactions involving the sanctioned person's property or interests in property that are in the U.S., enter the U.S., or are under the control of a U.S. person. This authority comes from the International Emergency Economic Powers Act (IEEPA), a law allowing the President to manage economic emergencies.
- Limited Exceptions: The President can apply no more than two of the following exceptions to the sanctions:
- Isolating Russian Funds for Humanitarian Use: For countries that deposit payments for Russian oil into a local account restricted to buying agricultural goods, food, medicine, or medical devices from Russia, and commit to significantly reducing such purchases. This requires certification every 180 days, and misuse of funds triggers sanctions.
- Deposits to Support Ukraine: If payments per barrel of Russian oil are deposited into a U.S.-established account for Ukraine's benefit, used for economic rebuilding or buying defense items (like weapons) to counter Russian aggression. Funds must be disbursed at least every 90 days, with congressional notifications and transparency certifications required; Congress can block transfers via a joint resolution.
- Support for Ukraine: For countries providing significant economic or military aid to Ukraine, certified every 180 days.
- Temporary Port-Specific Waivers: For up to 270 days after enactment, exceptions for oil from specific Russian ports, justified in a report to Congress, but limited to ports accounting for no more than half of Russia's 2024 oil export capacity.
- No Exceptions for Price Cap Violations: Exceptions do not apply if Russian oil is bought above the price cap set by the Treasury Secretary, regardless of whether the buyer is from a Group of 7 (G7) country. This covers activities like shipping, trading, financing, insuring, or customs brokering.
- Duration: The sanctions and provisions end 5 years after enactment.
- Definitions: Key terms include "foreign person" (non-U.S. individual or entity), "knowingly" (actual or should-have-known awareness), and standard definitions for items like agricultural commodities, medicine, and defense articles (e.g., weapons).
Significant Changes to Existing Law
- Expands beyond current U.S. and G7 sanctions on Russian oil by targeting any foreign entity worldwide involved in trade above the price cap, without requiring a G7 connection.
- Introduces new exception mechanisms tied directly to supporting Ukraine (e.g., dedicated accounts for aid and defense purchases), which were not explicitly structured this way in prior laws like the Uyghur Forced Labor Prevention Act or general IEEPA uses.
- Adds congressional oversight tools, such as required certifications, notifications for fund transfers (with a 15-day review period), and the ability to enact a joint resolution to block expenditures—strengthening legislative checks on executive sanctions decisions compared to some earlier Russia-related sanctions.
Potential Impacts
- Government Agencies: The Treasury and State Departments will face increased administrative burdens in identifying targets, issuing certifications, and managing exception accounts. The President gains flexibility but with limits on exceptions and reporting requirements to Congress (e.g., Committees on Foreign Affairs, Financial Services, Banking, and Foreign Relations).
- Citizens: U.S. citizens and businesses may see indirect effects through global energy market disruptions, potentially raising oil prices, but exceptions aim to minimize humanitarian impacts in importing countries.
- International Relations: Could strain ties with major Russian oil buyers like China and India if they do not qualify for exceptions, while encouraging allies to reduce Russian imports or boost Ukraine aid. It reinforces U.S. leadership in coordinating with G7 partners but risks retaliation from Russia, such as energy supply cuts to Europe.
Main Stakeholders Affected
- Foreign Oil Traders and Entities: Companies, shippers, financiers, and executives involved in Russian oil trade, who could face asset freezes and transaction bans.
- Russian Federation: Directly hit through reduced oil revenues, a key funding source for its military and economy.
- Importing Countries and Their Governments: Nations buying Russian oil (e.g., in Asia or Europe) must adapt by reducing purchases, isolating funds, or supporting Ukraine to avoid sanctions on their entities.
- Ukraine and Its Supporters: Benefits from potential new funding streams for rebuilding and defense, aiding its response to Russian aggression.
- U.S. Policymakers and Agencies: Congress and executive branch officials tasked with implementation and oversight.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on IEEPA for broad executive powers to impose sanctions without new courts or processes, but includes "knowingly" standards to avoid unintended liability. Exceptions for humanitarian and Ukraine-support purposes align with international norms but could face challenges if seen as coercive.
- Constitutional: Affirms the President's foreign affairs authority under Article II but enhances congressional involvement (e.g., via certifications and disapproval resolutions), balancing separation of powers without overriding executive discretion.
- Political: Sponsored by a bipartisan group of House members, signaling cross-party consensus on countering Russia. The 5-year sunset provides a review mechanism, potentially allowing future administrations to adjust based on geopolitical shifts, but the focus on Ukraine aid underscores ongoing U.S. commitment to the conflict.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McCaul, Michael T. [R-TX-10]
Cosponsors (8)
Rep. Keating, William R. [D-MA-9], Rep. Lawler, Michael [R-NY-17], Rep. Kaptur, Marcy [D-OH-9], Rep. Quigley, Mike [D-IL-5], Rep. Gottheimer, Josh [D-NJ-5], Rep. Cohen, Steve [D-TN-9], Rep. McBride, Sarah [D-DE-At Large], Rep. Kean, Thomas H. [R-NJ-7]
Recent Actions
- 2026-02-11: Referred to the House Committee on Foreign Affairs.
- 2026-02-11: Introduced in House
- 2026-02-11: Introduced in House
Bill Versions
- Decreasing Russian Oil Profits Act of 2026 — issued 2026-02-11 — PDF (14 pages)