Senators Van Hollen and Toomey propose to reduce Russian oil revenues to zero in 3 years

Senators Chris Van Hollen (Democrat) and Pat Toomey (Republican) on Wednesday proposed tightening restrictions on Russia over its invasion of Ukraine by imposing a price cap on Russian oil and imposing sanctions on countries that continue to actively partner with Russian energy companies.

The senators presented a framework document proposing a price cap on Russian oil and petroleum products by March 2023, with an annual price reduction of one-third that would bring Russian oil revenues to zero over three years.

The measure would require the U.S. Energy Information Agency to provide a list of all countries that do business with Russian energy companies that export coal, natural gas and oil.

Countries that “significantly” exceed prewar levels of Russian energy purchases should be subject to sanctions, according to a press release circulated by lawmakers. The sanctions law will expire after seven years or if the president repeals it after a diplomatic agreement is reached between Ukraine and Russia.

In their statement, Van Hollen and Toomey noted that the existing sanctions against Russia hit “the (Russian) economy and Putin’s cronies.”

Van Hollen and Toomey had previously worked together on sanctions legislation against North Korea and those involved in the violent crackdown on protests in Hong Kong.