Decreasing Russian Oil Profits Act of 2026
- Sponsor
- Rep. McCaul, Michael T. [R-TX-10]
- Committees
- Foreign Affairs Committee (primary)
- Last action
- Feb 11, 2026
Bottom line
This bill aims to restrict Russia's oil revenue by sanctioning foreign entities involved in its trade, while offering specific carve-outs to mitigate global economic disruption and channel funds towards Ukraine's defense and recovery.
What it actually does
This bill mandates the imposition of sanctions on foreign persons who purchase, import, or facilitate trade in crude oil or petroleum products of Russian Federation origin. It establishes several conditional exceptions to these sanctions, including for humanitarian trade, direct financial support to Ukraine, or general support for Ukraine, and clarifies that sanctions apply to transactions above a price cap regardless of the service provider's origin.
Proponents argue
Supporters argue this bill strengthens sanctions against Russia, cutting off a vital source of funding for its aggression in Ukraine, while providing flexible mechanisms to prevent undue harm to allied economies and channel funds towards Ukraine's defense and recovery.
Opponents contend
Opponents might contend that such broad sanctions could destabilize global energy markets, increase prices for consumers, and potentially alienate countries reliant on Russian oil, pushing them closer to Russia or other adversaries. They might also argue that the exceptions are overly complex or create loopholes.
The bill is relatively short and its core provisions are understandable, making it accessible for a focused read.
Section 2(a)
Sanctions on Russian Oil and Petroleum Product Dealers
This provision mandates the President to impose sanctions on any foreign person determined to be involved in purchasing or importing Russian crude oil or petroleum products, facilitating related financial transactions, or materially assisting such activities. It also covers chief executive officers or board members of such entities. These sanctions take effect 90 days after enactment.
Supporters argue
Supporters argue this directly targets Russia's war funding, increasing economic pressure and making it harder for Russia to sustain its aggression.
Critics contend
Critics might argue that broad sanctions could lead to unintended consequences, such as driving up global oil prices or pushing countries to find alternative, less transparent trading mechanisms.
Tradeoffs
Balances the goal of crippling Russia's economy against the risk of global energy market disruption and potential diplomatic fallout with countries reliant on Russian energy.
Section 2(b)
Scope of Sanctions
This subsection specifies that the sanctions involve blocking and prohibiting all transactions in property and interests in property of sanctioned foreign persons if those assets are in the United States or come under the control of a U.S. person. This leverages the broad powers of the International Emergency Economic Powers Act (IEEPA).
Section 2(c)(2)(A)
Agricultural/Medical Trade Exception with Reduced Purchases
This exception allows the President to waive sanctions for countries that purchase Russian oil if they certify that funds owed to Russia are credited to an in-country account, used only for agricultural commodities, food, medicine, or medical devices trade with Russia, and the country commits to significantly reduce future Russian oil purchases. This exception requires renewal every 180 days, with specific conditions for renewal. Misuse of these accounts incurs sanctions.
Section 2(c)(2)(B)
Ukraine Benefit Account Exception
This provision allows the President to waive sanctions for countries purchasing Russian oil if a payment per barrel is deposited into a U.S.-established account for the benefit of Ukraine. These funds are to be used for Ukraine's economic prosperity, reconstruction, and the purchase of defense articles. Strict notification, transparency, and accountability requirements are imposed on fund transfers, with a joint resolution of disapproval mechanism.
Section 2(c)(2)(C)
General Ukraine Support Exception
This exception allows the President to waive sanctions for countries purchasing Russian oil if they are providing "significant economic or military support" to the Government of Ukraine. This determination requires Presidential certification every 180 days for renewal.
Section 2(c)(2)(D)
Temporary Port-Specific Waivers
For 270 days after enactment, the President may apply temporary exceptions for Russian oil exported from specific Russian ports, provided a justification report is submitted to Congress. This exception is limited; it cannot cover ports cumulatively accounting for more than half of Russia's 2024 oil export capacity.
Section 2(c)(3)
Price Cap Enforcement
This provision clarifies that none of the exceptions apply if the activity facilitates the maritime transport of Russian oil or petroleum products purchased above the relevant price cap determined by the Secretary of the Treasury. This applies to all service providers (transporting, trading, financing, shipping, insuring, flagging, or customs brokering), regardless of whether they are based in a G7 country.
The sanctions imposed under this section, and the provisions of the section itself, shall terminate on the date that is 5 years after the date of the enactment of this Act.
Section 2(d)
Why it matters:This is standard legislative practice for sunset clauses, which are often placed at the end of a bill's substantive sections. While common, it means the temporary nature of the entire sanctions regime might not be immediately apparent.
Case for: Proponents would argue that a sunset clause provides a built-in mechanism for Congress to review the effectiveness and necessity of the sanctions after five years, allowing for adaptation to changing geopolitical circumstances without requiring new legislation for repeal.
Case against: Critics might contend that a finite duration for such a significant sanctions regime could create uncertainty for long-term planning by affected industries and countries, potentially limiting the full deterrent effect on Russia or investment in alternative energy sources.
Estimated impact: Limits the duration of the sanctions, potentially influencing long-term investment decisions in alternative energy sources or trade routes and providing a potential end-date for the economic pressure on Russia.