The U.S. Senate on Friday approved a bill that significantly tightens sanctions against Russia and Iran. The legislation includes, among other things, new penalties for Russian officials, state-owned enterprises, banks, and energy projects. It also allows for the imposition of high tariffs on countries that purchase large amounts of Russian oil and natural gas.
The bill was approved by a vote of 86 to 11. The House of Representatives will consider the bill in September. Opposition is expected, particularly regarding the provisions related to tariffs.
Before the vote, senators rejected an amendment that would have removed the president's authority to impose tariffs on countries importing Russian oil or natural gas. The vote took place shortly before lawmakers left Washington for a five-week summer recess.
The new legislation gives the U.S. president the power to impose sanctions on top officials of the Russian political and military leadership, state-owned enterprises, and foreign companies that Washington considers supporters of the Russian military-industrial complex.
The measures are also expected to target the Central Bank of Russia, Sberbank, and Gazprombank. The sanctions regime would also affect significant energy projects, including Yamal LNG, three Arctic LNG projects, and other future energy projects in the Russian Arctic.
A significant change from earlier versions of the bill is the level of planned tariffs. Originally, there was discussion of up to a 500% tariff on imports from countries purchasing Russian energy resources. The current version of the law instead calls for a 100% tariff on the five largest consumers of Russian oil and natural gas, as well as on five countries that U.S. officials say are helping Moscow circumvent Western energy sanctions.
The bill also includes additional restrictions targeting so-called "shadow fleets" of tankers used to transport oil despite Western sanctions. The legislation also includes measures to tighten U.S. sanctions against Iran.
U.S. President Donald Trump effectively supported the bill on July 29. However, he also said that he did not see a reason for the House of Representatives to end its August parliamentary recess early in order to quickly approve it.
Critics of the sanctions policy warn that further tightening of measures could have economic consequences for the United States itself. The Responsible Statecraft website, for example, stated that additional sanctions against Russia could increase economic uncertainty and weaken Washington's global influence in the long term.