US bill aims to ban agencies from working with Russian energy contractors

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Republican Senator Rick Scott introduced a new bill this week that would bar federal agencies from doing business with any entity that contracts with Russia’s energy industry.

“Senator Rick Scott introduced the Bicameral Russian Energy and Military Liability for Invading Neighbors Act (KREMLIN) to prohibit federal agencies from doing business with any entity that contracts with the evil regime of Putin or his cronies in the Russian natural gas, oil and coal sector,” Sen. Scott said in a statement Thursday.

Representative Michael Waltz introduced the companion legislation in the U.S. House of Representatives.

“As Russia wages war on Ukraine and threatens democracy and our national security in Europe, the United States must ensure that no US tax dollars are used to support Putin’s evil regime,” said Senator Scott.

Representative Michael Waltz said, “Put simply, the US government should not contract with companies that profit from and support Putin’s war crimes.

The bill includes exemptions for cases involving vital humanitarian assistance or U.S. national security interests.

At the start of the Russian invasion of Ukraine, the United States banned imports of all Russian energy products – including petroleum, liquefied natural gas (LNG) and coal – into the United States.

Last week, after weeks of negotiations, the EU also banned imports of Russian oil by sea by the end of the year.

Russia likely derives more oil and gas revenue now than before the war in Ukraine, U.S. energy security envoy Amos Hochstein said Thursday during a Senate subcommittee hearing.

On the same day, Russia said it had added the equivalent of $9.4 billion to its government emergency reserve fund, with the money coming from additional oil and gas revenues the country had received. so far in 2022. Russia expects to receive up to $6.37. billions of dollars in additional oil and gas revenue in June alone, its finance ministry said last week, as energy commodity prices have risen since Russia’s invasion of Ukraine.

By Tsvetana Paraskova for Oilprice.com

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