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US Passes Sanctions Bill Targeting Russia's Economy

Financial Times Companies •
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US lawmakers passed a sweeping sanctions bill to increase economic pressure on Russia over its war in Ukraine. The legislation, named after the late senator Lindsey Graham, passed the House with strong bipartisan support and will now go to Donald Trump for signing. The bill imposes sanctions on Russia’s defence and energy sectors, as well as its shadow fleet of ageing oil tankers used to evade existing restrictions. It also gives Trump extensive powers to impose tariffs of up to 100 per cent on countries that continue to purchase Russian oil and gas, potentially affecting major importers like China, India, and Turkey, as well as US allies such as Japan, France, and Hungary.

The provision has divided Democrats and supporters of Ukraine, with some fearing Trump could abuse new tariff powers to penalise allies. Minority House leader Hakeem Jeffries opposed the bill, citing numerous loopholes. Fifty-eight Democrats broke with their party to support the legislation, while 152 voted against it. Republicans backed the measure 203 to 7. The EU continues to rely on Moscow for piped gas and liquefied natural gas but is trying to phase out its reliance on Russian gas next year. Ukrainian President Volodymyr Zelenskyy expressed his support for the legislation in a video address, saying it is important that it becomes law.