US Senate agrees on new Russia sanctions law – Trump announces signing

Content of the bill

In its new form, the law also includes sanctions against Iran. The background is a phase of significantly higher world market prices for oil: "The US government had temporarily suspended sanctions on Russian oil deliveries in recent months in order to counteract price increases on the world market." "The trigger for the increase was the tightening of supply following the closure of the Strait of Hormuz as a result of the Iran war."

The agreement on the text coincided with the visit of Ukrainian President Volodymyr Zelensky to Washington and the memorial services for Graham. After his death, his seat in the Senate will be taken by his sister Darline Graham, "who, together with the Democratic senators Richard Blumenthal and Sheldon Whitehouse, continued to advocate strongly for the law."

Political background

According to newly published amendments, the law is to bear the name of the recently deceased Senator Lindsey Graham, who had been driving it forward for months. Lindsey Graham was known as the driving force behind the bill; after his death, his sister Darline Graham took on the task of continuing to advance the bill.

President Donald Trump has already announced that he will sign the law. "Trump had already announced that he would sign it," the media report. However, Trump had been cautious in the past about pressuring Beijing over Russian energy imports: "So far, President Donald Trump has shied away from putting pressure on Beijing over energy imports from Russia." On Indian goods he had "temporarily imposed a tariff of 25 percent because of the purchases of Russian oil."

Timeline and parliamentary path

Procedural questions remain open: The House of Representatives, the second chamber of Congress, is already on recess, "so it is unlikely to enter into force before September." According to media reports, the law could be passed by the Senate as early as this week, making the Senate the first chamber to act.

Observers see the inclusion of Iran sanctions as an escalation intended to increase pressure on Moscow and Tehran in parallel. The combination of energy, circumvention, and Iran sanctions thus gives the US government several levers at the same time.

Impact on China and India

Overall, the law changes the framework of US Russia policy: Russian energy exports are to come under greater pressure than before, while at the same time the risk of tensions with the main buyers, China and India, increases.

The timeline remains crucial, however: While the Senate vote may be imminent, the House of Representatives is not expected to take up the matter until after the summer recess in September.