Sanctions bill against Russia with powers for Trump on tariffs

Main assumptions of the project

The initiator of the sanctions bill against Russia was Senator Lindsey Graham, who died in July. During the final vote on Wednesday, the bill will most likely be passed.

The project includes, among others: imposing a whole list of sanctions, including, among others: Vladimir Putin, other Russian leaders and commanders, as well as oligarchs and state-owned companies, foreign companies that support the Russian arms industry, as well as financial institutions, major energy projects, shadow fleet ships, and Chinese entities supplying the Russian arms industry.

Important notes about the shadow fleet

Most of the proposed restrictions already exist, but the bill would make it difficult to remove them. The bill will also make it more difficult for American companies to return to invest in Russia.

The only new thing is the potential expansion of the number of tankers from the shadow fleet to ships subject to sanctions from other countries. According to Senator Jeanne Shaheen (Democratic Party), the provisions on sanctions on the shadow fleet may cause some foreign companies to stop buying Russian crude oil.

Additional powers for Trump. Democrats' concerns

However, the provisions on customs duties are the most controversial. According to critics (mainly Democrats), despite the above-mentioned criteria, they are so vague and susceptible to manipulation that they can be used arbitrarily by Trump, including against US allies and the European Union.

Democrats are concerned about provisions giving President Donald Trump additional authority to impose tariffs. The project imposes an obligation to impose customs duties of up to 100%. for goods from the five largest importers of Russian oil and gas and five countries helping Russia bypass sanctions.

However, the regulations exclude from this group countries whose gas purchases constitute less than 15 percent. Russian exports of this raw material. Although the text of the act obliges the president to impose the specified sanctions and tariffs within 30 days, the provisions also give him the right to apply exceptions, suspend or withdraw from these actions.

Which countries are at risk of tariffs?

According to Republican Senator Roger Wicker, the five largest buyers of Russian oil are China, India, Slovakia, Hungary and Azerbaijan. However, other sources mention Turkey among them. The provisions of the draft law also make an exception for countries limiting the share of Russian energy in the mix. The largest importers of Russian gas could also include France, Japan, Hungary and Belgium.