Topline
The Senate on Thursday passed a bipartisan bill to ban Russian energy imports, building on an executive order signed by President Joe Biden last month and adding to a slew of retaliatory measures taken against Russia after its invasion of Ukraine in late February.
The measure is “about bringing every tool of economic pressure to bear on Vladimir Putin and his … [+]
Key Facts
In rare unanimous agreement, the Senate passed the measure, dubbed the Suspending Energy Imports from Russia Act, in a vote of 100 to 0, after it passed the House in a vote of 414 to 17 last month.
The 17-page bill will suspend the import of Russian oil and energy products into the U.S. beginning 45 days after the legislation is enacted, but gives Biden the authority to waive the ban for any products necessary for the “national interest of the United States.”
The bill also directs U.S. Trade Rep. Katherine Tai to take steps to curb Russia’s access to the World Trade Organization, including encouraging other WTO members to suspend trade concessions with Russia and moving to suspend Russia’s participation in the intergovernmental organization.
Lastly, the bill would reauthorize the Magnitsky Act to allow the U.S. to sanction any foreign person the president determines to be “complicit in serious human rights abuse”; the act was named after a Russian attorney and auditor who documented rampant tax fraud by Russian officials, but died in prison in 2009 after being arrested and tortured for alleged tax evasion.
In a statement after passage, Sen. Ron Wyden (D-Ore.) said the measure “is about bringing every tool of economic pressure to bear on Vladimir Putin and his oligarch cronies” after Biden signed a similar ban last month.
The order banned imports of Russian crude oil and certain coal, liquefied natural gas and petroleum products, and also prohibited American investors and companies from investing in Russia’s energy sector.
The Senate also unanimously passed legislation to revoke permanent normal trade relations (PNTR) with Russia and Belarus on Wednesday; both bills now head to the House for final passage.
Key Background
The economic fallout since Putin ordered an invasion of Ukraine in late February has intensified amid a growing list of sanctions targeting the Russian government, businesses and oligarchs. Most recently, the United States banned Americans from making new investments in Russia and placed full blocking sanctions on two of Russia’s largest banks on Wednesday. The Treasury has also blocked American citizens from doing business with Russia’s central bank, finance ministry or National Wealth Fund and frozen the assets of sanctioned entities in the U.S.
What To Watch For
After announcing his order last month, Biden acknowledged that the resulting impact on U.S. oil supply would push gas prices higher. “The decision today is not without cost here at home,” he said. “Since Putin began his military buildup on Ukrainian borders . . . the price of the gas at the pump in America went up 75 cents, and with this action, it’s going to go up further.”
Chief Critic
“The U.S., undoubtedly, declared an economic war against Russia, and they are waging this war,” Kremlin spokesperson Dmitry Peskov told state-backed news agency Tass ahead of House passage last month. “Yes, de facto this is exactly what it is.”
Further Reading
Live: U.S. Has ‘Declared Economic War,’ Russia Claims (Forbes)
Gas Prices Surge To Record High Ahead Of Russian Oil Ban—Americans Will ‘Feel The Pain’ For A While (Forbes)
Source: https://www.forbes.com/sites/jonathanponciano/2022/04/07/senate-unanimously-passes-russian-oil-and-gas-ban-after-bidens-executive-order/