Congress Members Call for Stricter Oil Sanctions Against Russia

A Bipartisan coalition of lawmakers is demanding stricter sanctions on Russian oil.

At a Glance

Over 50 congressional representatives are urging the Biden administration to establish stricter sanctions on oil in Russia.
U.S. oil field service company SLB’s operations in Russia are under scrutiny.
Lawmakers argue SLB’s activities financially support Russia’s military efforts in Ukraine.
They are calling for more rigorous sanctions to cut off Kremlin revenue and questioning current effectiveness.

Bipartisan Push for Tighter Sanctions

A bipartisan coalition of more than 50 congressional representatives is calling on the Biden administration to impose stricter sanctions on Russian oil operations. The focus of their concern is SLB, a U.S. oil field service company that reportedly continues to operate in Russia following the February 2022 invasion of Ukraine. This push comes as lawmakers question the effectiveness of current sanctions and seek to further restrict the Kremlin’s ability to finance its military efforts.

The congressional group, led by Representatives Lloyd Doggett (D-Texas) and Jake Auchincloss (D-Mass.), has raised alarms about SLB’s activities in Russia. Reports suggest that the company has imported millions of dollars worth of equipment into the country, including items that should be subject to international export controls. This has sparked concerns about potential violations of existing sanctions and the need for more comprehensive measures.

A group of 52 US lawmakers demand tighter sanctions on Russian oil.

US-based oilfield company SLB's operations in Russia under fire.@ShivanChanana tells you more#RussianOil #SLB #US pic.twitter.com/d1jqkCjbYD

— WION (@WIONews) October 22, 2024

SLB’s Continued Operations in Russia

Despite international pressure, SLB has maintained a significant presence in Russia. The company received 5% of its revenue from Russian operations last year and had 10,000 employees in the country at the start of the Ukraine conflict in 2022. Reports indicate that SLB has continued to sign new contracts, hire staff, and import equipment, all of which contribute to maintaining Russian oil production levels.

“This U.S.-based company is keeping Vladimir Putin’s war machine well-oiled with financing for the barbaric invasion of Ukraine,” lawmakers wrote.

The lawmakers argue that SLB’s activities are directly supporting Russia’s military efforts in Ukraine by providing crucial technology and expertise to the Russian oil sector. This support, they contend, undermines the intended impact of existing sanctions and prolongs Russia’s ability to finance its military operations.

Calls for Stronger Measures

In their appeal to the Biden administration, the bipartisan group is urging for more rigorous oil sanctions to effectively restrict Putin’s profits. They are seeking clarification on SLB’s understanding of current sanctions and have requested a list of all approved exceptions to American sanctions. The lawmakers acknowledge the argument that Russian oil is critical to the global supply but believe that allowing Western technology to bolster Russia’s oil and gas sector only increases its resilience against sanctions.

“We urge you to continue supporting our Ukrainian allies by pursuing more rigorous oil sanctions to effectively restrict Putin’s profits,” the lawmakers said.

The push for tighter sanctions comes following revelations from a Financial Times investigation that reported SLB’s expansion in Russia despite international sanctions. Ukraine’s National Agency on Corruption Prevention has also previously blacklisted SLB as an “international war sponsor.” The situation highlights the complex balance between maintaining global oil supplies and effectively pressuring Russia to end its aggression in Ukraine.

Balancing Act: Global Oil Supply vs. Sanctions

Western politicians have been hesitant to impose comprehensive sanctions on Russia’s oil and gas companies due to concerns about potential global oil price surges. However, the bipartisan group argues that the current approach is insufficient in curbing Russia’s ability to fund its military operations. They emphasize the need to prioritize cutting off revenue to the Kremlin, even if it means potentially disrupting global oil markets.

As the debate continues, the Biden administration faces mounting pressure to reevaluate its approach to Russian oil sanctions. The bipartisan call for action underscores the growing concern among U.S. lawmakers about the effectiveness of current measures and the urgent need to address any loopholes that may be allowing companies like SLB to continue operating in Russia.