Two Bipartisan Measures to Strengthen U.S. Response to Putin’s War
Contact: Alexis Torres, Alexis.Torres@mail.house.gov
Washington, D.C.— Two active members of the Congressional Ukraine Caucus, joined by 51 colleagues, introduced two bipartisan pieces of legislation in further response to Russian atrocities in Ukraine by strengthening the current ban on Russian petroleum products as well as supporting Ukrainian reconstruction and recovery. Leading the effort are U.S. Representatives Lloyd Doggett (D-TX), a senior member of the House Ways and Means Committee, and Joe Wilson (R-SC), Chairman of the House Foreign Affairs Subcommittee on the Middle East, North Africa, and Central Asia.
The Ending Importation of Laundered Russian Oil Act, would close the “refining loophole” that allows Russian oil to be laundered through third-party countries and sold in the United States as gasoline and other petroleum products, and the Russian War Crimes in Ukraine Tax Act, would tax interest and dividend income currently accruing in frozen sovereign Russian and Belorussian assets to establish a trust fund dedicated to rebuilding Ukraine.
Ending Importation of Laundered Russian Oil Act:
“While timely delivery of military assistance remains the most urgent priority, we must also reduce funding of Putin’s ‘well-oiled’ war machine and assure Russia contributes to rebuilding what it is destroying,” said Rep. Doggett. “Russia is selling millions of barrels of oil that are refined through foreign refineries and resold here and in Europe. While modest in Putin’s total war budget, American purchases represent enough to buy thousands of drones.”
"Reducing Putin's access to financing is crucial to ensuring victory for Ukraine. The U.S. must end all purchases that indirectly benefit Putin,” said Rep. Wilson.
Last year, Rep. Doggett sponsored the Ending Importation of Russian Oil Act, which became law on April 8, 2022. This measure prohibits the direct import of energy products from Russia into the United States. However, Russia can circumvent these sanctions when its oil is refined or “substantially transformed” in third-party countries into products such as gasoline and diesel. Accordingly, the U.S. remains linked to a supply chain channeling funds used by Russia to wage aggression in Ukraine.
Russian War Crimes in Ukraine Tax Act:
“As the cost of damage inflicted on Ukraine approaches $1 trillion, I personally favor seizing all Russian sovereign wealth assets,” said Rep. Doggett. “Acting now to at least take the earnings from those assets will encourage other countries to do the same and enable our beginning to collect resources already needed to begin reconstruction.”
"As Putin and his cronies commit atrocities in their war against democracy in Ukraine, it is critical that Russia foot the costs of their destruction. This bill allows the U.S. to turn over to Ukraine tax profits of the U.S.-controlled frozen Russia bank assets to help pay for reconstruction costs,” said Rep. Wilson.
The U.S. and its allies have frozen more than $330 billion in Russian Central Bank assets. The US and the UK recently expressed support for the EU to tax windfall profits generated by such assets to cover reconstruction costs. The Russian War Crimes in Ukraine Tax Act positions the U.S. to join EU allies in ensuring that those committing war crimes pay for some of the damage they’ve inflicted. Tax revenue generated from this legislation would flow into a Ukrainian Reconstruction Trust Fund for reconstruction and humanitarian assistance to the people of Ukraine.
Quotes from Endorsing Organizations:
“Ukraine will need billions of dollars to rebuild and recover after this war of aggression. The Russian War Crimes in Ukraine Tax Act is a smart way to help secure these funds by using Russia's own resources in the United States to pay for Ukraine's reconstruction and re-establish the foundations of a free and prosperous democracy,” said Eleanor Nichol, Executive Director of The B4Ukraine Coalition. “In the past 600 days, Russia has amassed a staggering 440 billion US dollars in revenue from fossil-fuel exports. This money provides a financial lifeline to the Russian government, helping to fund the invasion of Ukraine and its war crimes. Squeezing this Kremlin cash-cow is the quickest way to end this horrific war. That's why B4Ukraine is proud to support this Bill to close the loophole allowing refined Russian oil reaching the United States. It's a win-win measure which will strengthen existing sanctions without raising prices at the pump.”
"Russia's war on Ukraine is paid for by oil sales. It is counterproductive for the US government to send aid to Ukraine while simultaneously allowing gasoline imports that directly fund Russia’s war machine. The Ending Importation of Laundered Russian Oil Act will make good on the US promise of unwavering support for Ukrainian sovereignty by severing America’s links to Russian oil at no cost to the taxpayer." – said Lela Stanley, interim co-lead for Global Witness’s Stop Russian Oil project.
"The U.S., as a democratic leader on the global stage, must spearhead efforts to create full and transparent sanctions against Russia’s fossil fuel industry. Cutting down oil and gas exports from Russia is paramount for both ending the war of aggression started by Russia and mitigating climate change. Ukrainian civil society welcomes the introduction of the Ending Importation of Laundered Russian Oil Act as a significant step towards tightening the oil embargo against Russia. We hope the U.S. will adopt this bill swiftly and, with the broad engagement of the EU, G7, G20 and other powerhouses, will succeed in efforts to close all loopholes to cut Russia’s fossil fuel trade for the sake of peace, energy security and justice," - said Svitlana Romanko, founder and director of Razom We Stand.
"The sale of Russian oil products has and continues to finance Putin's war of genocide against Ukrainians. Putin's blood oil has no place in America. American consumers must have the certainty that when they are fueling their cars, it is not being done with products enriching the Putin regime.” - Scott Cullinane, Director of Government Affairs for Razom for Ukraine.
Text of the Ending Importation of Laundered Russian Oil Act can be viewed here.
Text of the Russian War Crimes in Ukraine Tax Act can be viewed here.