This bill directs the President to sanction foreign persons (i.e., individuals and entities) that do not comply with the Russian oil price cap policy.
The Russian oil price cap policy is an agreement between the United States, the European Union (EU), Australia, and the Group of Seven (G7) countries to limit the use of services that support or enable Russian oil shipments above an agreed-upon price cap.
The bill requires the President to block any transaction inside or within the control of the United States by a foreign person that has knowingly transported Russian oil in contravention of the Russian oil price cap policy. The sanctions shall not apply to a vessel under the jurisdiction of Australia, an EU member country, or a G7 country. Additional exceptions apply, such as for national security reasons, and the President may waive the sanctions in limited circumstances specified in the bill.
The authority to impose these sanctions sunsets five years after this bill's enactment or when the Russian oil price cap policy ends, whichever comes first.
The bill also requires the Department of State to report to Congress a strategy to enhance international compliance with the Russian oil price cap policy. The strategy must list countries that purchase oil above the price cap, detail the methods countries use to make such purchases and avoid detection, and present possible ways the United States could encourage broader compliance.
