SHADOW Fleet Sanctions Act of 2026

Bill Number

S. 2904

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2026-02-10: Placed on Senate Legislative Calendar under General Orders. Calendar No. 326.

Last Updated

2026-05-15T11:03:25Z

AI-Generated Summary

Purpose

The SHADOW Fleet Sanctions Act of 2026 aims to strengthen U.S. sanctions against Russia's "shadow fleet"—a network of foreign vessels used to evade international restrictions on transporting Russian oil, petroleum products, and other goods. The legislation seeks to disrupt Russia's ability to fund its military actions, particularly in Ukraine, by targeting evasion tactics, aligning U.S. efforts with allies like the EU and UK, enforcing price caps on Russian energy exports, and countering support from third countries like China.

Key Provisions

• Definitions (Section 101): Establishes terms such as "Russian shadow fleet" (vessels directed by Russia to bypass sanctions), "adequate maritime insurance" (verified coverage excluding Russian or sanctioned insurers), "crude oil price cap" (a coalition-agreed limit on Russian oil prices), and "sabotage activities" (intentional damage to undersea infrastructure like pipelines or cables).

• Sanctions on Shadow Fleet (Subtitle A):
• Vessels and Support (Sections 111–113): Requires the President to sanction vessels showing unsafe behavior (e.g., turning off tracking systems, lacking insurance, or evading price caps) or persons owning, operating, insuring, or servicing them. Sanctions include property blocking and visa ineligibility/revocation. Ports in China or India accepting overpriced or sanctioned Russian oil may also face sanctions.
• Transactions with Sanctioned Vessels (Section 112): Targets ship-to-ship transfers, port access, or refining of Russian petroleum by foreign persons, with exceptions for emergencies.
• Alignment and Reporting (Sections 121–123): Mandates reports on EU/UK-sanctioned vessels, a strategy for U.S.-ally coordination, support for the Joint Expeditionary Force (a multinational maritime group), and disclosure of licenses under Executive Order 14024 (blocking Russian harmful activities).
• Flag State Standards (Sections 131–132): Sets U.S. policy for "open flag registries" (countries allowing vessels to fly their flag), requiring laws against sanctions evasion, illicit activities (e.g., drug trafficking), and safety risks. Includes annual assessments and engagement strategies for non-compliant countries through 2030.
• Price Cap Enforcement (Sections 141–142, 151): Directs monitoring, international engagement, and reports on compliance with the price cap (established by the Price Cap Coalition: U.S., EU, UK, Japan, etc.). Promotes UN maritime resolutions to deny port access to evasive vessels.

• Energy Sanctions (Subtitle B):
• Russian Projects (Section 161): Sanctions leaders or major shareholders in Arctic LNG projects (e.g., Yamal, Arctic 1–3) and new Arctic/Far East ventures. Urges allies to diversify from Russian energy like Sakhalin pipelines.
• China's Role (Section 162): Requires a strategy and briefing on China's involvement in smuggling Russian petroleum, including monitoring vessels, deterrence via education, ally collaboration, and assessments of market impacts.

• Defense Industrial Base Sanctions (Subtitle C, Section 171): Quarterly reports identifying foreign persons supplying Russia with critical goods (e.g., semiconductors, CNC tools, munitions components). Imposes property blocking and visa restrictions on identified persons and their officers/shareholders, with a 30-day wind-down for initial targets.

• General Provisions (Subtitle E):
• Sanctions Types (Section 191): Primarily property blocking under the International Emergency Economic Powers Act (IEEPA, a law allowing economic measures in emergencies) and immigration restrictions (inadmissibility under the Immigration and Nationality Act).
• Exceptions and Waivers (Section 192): Exempts humanitarian aid, U.N. obligations, intelligence/law enforcement, vessel safety, and goods imports. Allows case-by-case waivers for national security (up to 180 days) or if activities cease. Annual reports on exempted activities.
• Implementation (Section 193): Authorizes IEEPA penalties (fines up to $1 million or imprisonment) for violations; requires regulations within 180 days.
• Termination (Section 194): Sanctions end 10 years after enactment.

• Other Matters (Title II):
• Military Assessments (Section 201): Optional presidential determinations and reports on Russian military escalations in key seas (e.g., Baltic) that undermine sanctions or risk incidents.
• Resources (Section 202): Authorizes $15 million each for State Department's Sanctions Coordination Office and Treasury's Office of Foreign Assets Control (OFAC) in FY2026–2027 for modernization (e.g., databases, staffing). Requires a report on challenges.
• Military Cooperation (Section 203): Removes limits on U.S.-Russia military ties from the 2017 National Defense Authorization Act.
• Appropriations (Section 204): $200 million emergency funding for the Countering Russian Influence Fund to aid Ukraine and Eastern European allies against Russian threats (e.g., disinformation, sabotage); requires semiannual reports.
• Ukraine Support (Sections 205–206): Monthly reports on U.S. aid to Ukraine (drawdowns, financing). Speeds arms sales approvals to 15 days (from 30) with expedited congressional review.

Significant Changes to Existing Law

• Protecting Europe's Energy Security Act of 2019 (Section 181): Expands sanctions to cover Nord Stream 1 and successors (previously only Nord Stream 2); removes a waiver for Russian energy imports; tightens national security waivers with congressional joint resolution veto power (30-day review, limited debate); extends sanctions indefinitely unless Russia is no longer a security threat.
• National Defense Authorization Act for Fiscal Year 2017 (Section 203): Strikes subsections limiting U.S.-Russia military cooperation, potentially allowing more flexibility in non-hostile interactions.
• New Elements: Introduces mandatory sanctions timelines (e.g., 180 days for shadow fleet), a 10-year sunset for core sanctions, and specific focus on China's evasion (previously addressed more broadly in executive orders like 14024).

Potential Impacts

• Government Agencies: Increases workload for State, Treasury (OFAC), Commerce, Energy, and Defense with frequent reports (e.g., quarterly, semiannual) and coordination. Allocates new funds for staffing and tools, but may strain resources without full appropriations.
• Citizens: U.S. citizens face indirect effects via global energy price fluctuations if sanctions reduce Russian oil flows. Immigration restrictions could limit travel/business with sanctioned foreigners.
• International Relations: Bolsters alliances (e.g., Price Cap Coalition, NATO, Five Eyes) through shared data and task forces; pressures non-allies like China/India via port sanctions, potentially straining trade ties. Could escalate U.S.-Russia tensions but deter shadow fleet risks to maritime safety and undersea infrastructure.

Main Stakeholders Affected

• U.S. Government: Departments of State, Treasury, Defense, Commerce, Energy; congressional committees (e.g., Foreign Relations, Armed Services).
• Russian Entities: Shadow fleet operators, energy firms (e.g., Arctic LNG), defense suppliers; the Russian government via reduced revenues.
• Foreign Persons/Entities: Owners, insurers, crews of shadow fleet vessels; Chinese/Indian port operators; suppliers of defense goods (e.g., semiconductor firms).
• Allies and Partners: EU, UK, G7, Japan, Australia; Ukraine and Eastern European nations benefiting from aid.
• Global Actors: Insurers, shippers, refiners in third countries; international bodies like the International Maritime Organization.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on IEEPA for economic powers (no new declaration needed) and immigration laws for visa bans, ensuring enforceability. Exceptions prevent overreach (e.g., humanitarian carve-outs), but penalties mirror existing sanctions regimes. The 10-year termination provides a defined endpoint, unlike perpetual authorities.
• Constitutional: Waiver processes involve congressional oversight (joint resolutions), balancing executive flexibility with legislative checks under Article I (appropriations, war powers). Potential challenges if waivers are seen as infringing separation of powers.
• Political: Bipartisan (introduced by Sens. Risch, Shaheen, etc.), signals U.S. commitment to Ukraine amid ongoing conflict. Could influence global energy geopolitics by targeting China, risking retaliatory measures, but enhances U.S. leverage in multilateral sanctions without direct military escalation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Risch, James E. [R-ID]

Cosponsors (21)

Sen. Shaheen, Jeanne [D-NH], Sen. Cotton, Tom [R-AR], Sen. Whitehouse, Sheldon [D-RI], Sen. Ricketts, Pete [R-NE], Sen. Blumenthal, Richard [D-CT], Sen. Coons, Christopher A. [D-DE], Sen. Graham, Lindsey [R-SC], Sen. Kaine, Tim [D-VA], Sen. Wicker, Roger F. [R-MS], Sen. Curtis, John R. [R-UT], Sen. Duckworth, Tammy [D-IL], Sen. Cornyn, John [R-TX], Sen. Gallego, Ruben [D-AZ], Sen. Tillis, Thomas [R-NC], Sen. Bennet, Michael F. [D-CO], Sen. Boozman, John [R-AR], Sen. Hassan, Margaret Wood [D-NH], Sen. McCormick, David [R-PA], Sen. Merkley, Jeff [D-OR], Sen. Grassley, Chuck [R-IA], Sen. Booker, Cory A. [D-NJ]

Recent Actions

• 2026-02-10: Placed on Senate Legislative Calendar under General Orders. Calendar No. 326.
• 2026-02-10: Committee on Foreign Relations. Reported by Senator Risch with an amendment in the nature of a substitute. Without written report.
• 2026-02-10: Committee on Foreign Relations. Reported by Senator Risch with an amendment in the nature of a substitute. Without written report.
• 2026-01-29: Committee on Foreign Relations. Ordered to be reported with an amendment in the nature of a substitute favorably.
• 2025-09-18: Read twice and referred to the Committee on Foreign Relations.
• 2025-09-18: Introduced in Senate

Bill Versions

• Sanctioning Harborers And Dodgers Of Western Sanctions Act of 2025 — issued 2025-09-18 — PDF (54 pages)
• Sanctioning Harborers And Dodgers Of Western Sanctions Act of 2026 — issued 2026-02-10 — PDF (106 pages)