WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Breaking Russia’s Energy Addicted Kleptocracy and Punishing Uncivil Tyrant Invading Neighbor (BREAK PUTIN) Act to end Putin’s war in Ukraine and establish a price cap for Russian oil.
“An oil price cap must have the force to end Putin’s war—that’s what the BREAK PUTIN Act does,” said Dr. Cassidy. “Biden’s sanctions aren’t working and its oil price cap won’t diminish Putin’s war machine. This legislation offers a better way forward, cutting off Putin’s access to oil revenues.”
The BREAK PUTIN Act delivers a direct hit to Vladimir Putin’s war machine to help end the war. The bill sets a cap on what price countries and companies can purchase Russian crude oil at and enforces the cap by requiring the U.S. Treasury to act as an intermediary in all sales. The bill takes immediate action to end the war, as opposed to President Biden’s plan which is dependent on approval from each G7 country and each of the 27 European Union member states.
The BREAK PUTIN Act:
- Establishes a price cap for Russian oil at 15% above marginal production costs
- Imposes secondary sanctions for financial institutions violating the price cap.
- Requires all funds to purchase Russian crude be held in escrow at the U.S. Treasury .
- Permits Russian access to funds for certain non-sanctioned products.
- Establishes strict requirements for Russia to repatriate all funds.
- Establishes an interagency task force to combat illicit trade by Russia to evade sanctions using shipping companies, insurance companies, ports, port operators and banks.
- Requires the President to take necessary steps to increase U.S. crude oil production and refining capacity, consistent with his message throughout 2022.