US congressmen proposed the DROP Act to strengthen sanctions against the Russian oil sector and completely eliminate loopholes in the current regime. The new legislation is supposed to weaken the financing of the war in Ukraine.
A group of American congressmen presented new legislation aimed at limiting the export of Russian oil. The Law on Decreasing Russian Oil Profits (DROP) provides for targeted sanctions against any foreign individual or entity involved in the purchase, import or brokering of the purchase of oil and oil products of Russian origin. TASR writes about it according to the report of Radio Free Europe/Rádio Sloboda (RFE/RL).
- US congressmen have proposed a law to limit the export of Russian oil.
- The DROP Act directs sanctions to all entities involved in this trade.
- The aim is to close loopholes in the current sanctions against Russia.
According to the proponents, the law is intended to close persistent loopholes in the current sanctions regime and completely limit Moscow’s ability to finance the war in Ukraine.
The goal: to weaken the Kremlin’s income
“Russian energy is the lifeblood of the Kremlin’s war machine, and the DROP bill would deplete this primary source of revenue,” said Republican Congressman Michael McCaul of Texas.
In his words, Russian President Vladimir Putin has shown that he will not be willing to seek a path to peace “until the price for his continued bloodshed is too high.”
“It is time for every nation and individual to choose between doing business with the free world and continuing to fund Putin’s brutality,” McCaul said. In addition to him, the group of proponents consists of Republicans and Democrats.
Reaction to circumvention of sanctions
Kiev’s allies have imposed sweeping sanctions on Moscow after launching an invasion of Ukraine in 2022, including price caps on Russian oil exports. In an effort to circumvent these restrictions, Russia is increasingly using a so-called shadow fleet of aging tankers and complex agreements with third parties. The DROP Act directly targets this system.
Republican Congressman Mike Lawler of New York highlighted law enforcement as a key issue.
“Sanctions only work if they are enforced,” he said, arguing that the legislation would strengthen the current sanctions regime and “stop key funding for Putin’s war machine.” He added that it was time to use “the full force of American economic power to push the Kremlin out.”
Sanctions and ceasefire
Proponents of the bill say enforcement of sanctions and additional pressure on Russia’s energy revenues are necessary if ceasefire talks in the Russia-fueled war in Ukraine are to produce meaningful results.
