Bill would cancel oil licenses and sanction Russian energy operators

Two Treasury licenses would lose legal effect, and Treasury could not permit otherwise banned transactions needed to sell, deliver, or unload Russian oil. The licenses cover Russian oil and petroleum products loaded on vessels as of March 5, 2026, for India, and as of March 12, 2026. The restriction on future permissions covers transactions that the law otherwise prohibits. The two licenses would lose effect on the date the bill becomes law.

The President would impose financial sanctions and could freeze covered assets. Covered Russian operators extract, refine, or produce oil and gas, or transport oil, gas, or other petroleum products by sea. Asset freezes could reach property in the United States or held or controlled by U.S. persons. Exceptions cover food, medical, and humanitarian transactions and authorized U.S. intelligence, law enforcement, and national security activities. The President would have to impose sanctions within 30 days after enactment.

U.S. officials would deny entry to covered Russian operators they know or have reason to believe fall within the sanctions. The entry restriction covers foreign nationals engaged in Russian oil and gas extraction, refining, production, or sea transport. Entry needed to meet U.S. international commitments would be exempt. Exceptions also cover food, medical, and humanitarian transactions and authorized U.S. intelligence, law enforcement, and national security activities. The President would have to impose sanctions within 30 days after enactment.

The Secretary of State would send Congress recurring reports on Russian oil and state-linked energy companies’ involvement in abuses against Ukrainians. Oil reports would examine the licenses’ effects on exports, revenue, and production. Separate reports would examine state-linked energy companies’ involvement in abducting, forcibly deporting, or indoctrinating Ukrainian civilians, including children. Both reports would start within 30 days after enactment. Oil reports would follow every 60 days for three years; reports on abuses would follow every 180 days for two years.