Bottom Line Up Front
Today, the House Rules Committee will meet to consider the bipartisan, Senate-passed Lindsey O. Graham Sanctioning Russia and Iran Act (H.R. 5334). Its action could set the bill up for a floor vote as early as this week. This vote comes as Russia is preparing to intensify its winter offensive against Ukraine and with less than four months left before the Iran Sanctions Act of 1996 expires on December 31, 2026.
The Lindsey O. Graham Sanctioning Russia and Iran Act would impose sanctions on senior Russian officials, major financial institutions and entities in Russia’s defense and energy sectors. It would ban new U.S. investment in Russia and would authorize tariffs of up to 100% on the five largest buyers of Russian oil and gas and the top facilitators of Russian sanctions evasion. The bill would also extend the Iran Sanctions Act, which has been the statutory backbone of U.S. sanctions on Iran’s energy sector for three decades.
FDD Action supports this legislation and urges Members of Congress to vote for it. This Action Alert lays out what you need to know about this legislation, why it deserves your boss’s support, and what it would do.
Legislation at a Glance
FDD Action Expert Analysis
“Since the beginning of Russia’s full-scale invasion of Ukraine, Putin and his cronies have refused to negotiate in good faith or back away from their unrealistic, maximalist, and often baffling demands. That is why the United States must ramp up the pressure on Russia to end its genocidal campaign in Ukraine and stall its war machine. Few understood this reality better than Senator Lindsey Graham, who tirelessly fought to make the Sanctioning Russia Act into law. Now, his colleagues in the House must take up the mantle to drain Russia’s coffers and make its allies reconsider their support. FDD Action urges all members of Congress to support the legislation and to pass it swiftly.”
— Daniel Vaynshteyn, Associate Director of Government Relations at FDD Action
What You Need to Know
- Urgency of winter: Russia systematically targets Ukraine’s energy grid and heating infrastructure during winter when power outages can become life-threatening and frozen ground makes grid repairs more difficult. This strategy to “freeze out” Ukraine leverages civilian suffering and lowered morale to shape Kyiv and Washington’s strategic decisions. Passing sanctions now would deny Moscow revenue and signal resolve to both Kyiv and Moscow before the fighting intensifies.
- Energy exports bankroll Russia’s war: Oil and gas revenue is the backbone of Moscow’s federal budget. Despite the G7 price cap and related restrictions, loopholes and evasion tactics have continued to route significant revenue to the Kremlin. China, India, and Turkey account for a large majority of Russia’s crude oil exports and serve as hubs for evading sanctions on Russian energy.
- Limited tariff authority: The tariffs authorized by the bill are capped, tied to specific conduct, recalculated periodically by the U.S. Trade Representative (USTR), and set to expire with the Russia-related sanctions authorities five years after enactment. USTR Jamieson Greer further committed in writing that tariffs would be lifted if a country no longer qualified as a top-five buyer of Russian oil and gas or facilitator of sanctions evasion. This commitment convinced a Democratic holdout concerned about authorizing overly broad tariff powers to vote for the bill.
- Allies are protected: European partners still weaning off Russian gas are shielded by the bill. Not only do the tariffs apply to individual countries rather than the EU as a bloc, but the bill also exempts countries whose Russian gas imports were under 15% of Russia’s total gas exports and who have taken significant steps to reduce them. This is underscored by the EU’s vocal support for the bill.
- Securing Iran sanctions authorities: The bill extends the Iran Sanctions Act of 1996. The current authority, which has drawn bipartisan support for three decades, has served as the statutory backbone of U.S. sanctions on Iran’s energy sector since it became law. Now, it is set to lapse on December 31, 2026. This extension closes a gap that Tehran and its Russian partner could otherwise exploit.
- Bipartisan consensus: The bill passed 86-11 in August, reflecting rare bipartisan consensus that Congress must escalate pressure now that Ukraine has retaken the battlefield initiative. In another demonstration of bipartisan support for the limited tariff authority, an amendment led by Sens. Rand Paul (R-KY) and Ron Wyden (D-OR) to strip the tariff authority was defeated by a bipartisan majority.
About the Legislation
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (H.R. 5334) would increase pressure on Russia and its support network by:
- Imposing mandatory sanctions on Vladimir Putin, senior Russian political and military leaders, oligarchs, state-owned enterprises, and foreign companies supporting Russia’s defense industrial base in Sections 102 and 104.
- Sanctioning major Russian financial institutions, such as the Central Bank of the Russian Federation, Sberbank, and Gazprombank. It also includes Russia’s largest state energy projects, including Yamal LNG and Arctic LNG 1, 2, and 3, and their controlling owners and executives in Sections 103 and 104.
- Authorizing tariffs of up to 100 percent on the top five importers of Russian crude oil and natural gas, and on the top five countries facilitating Russia’s sanctions evasion in Section 113(a)/(c). This rate is a reduction from the 500 percent tariff proposed in the original 2025 version of the bill.
- Shielding European partners still working to wean off Russian energy by making an exception for minor importers and those cutting imports, as defined by Section 113(d) of the bill.
- Limiting presidential waiver authority. Section 115 requires any waiver to include a signed, written national interest certification submitted to Congress.
- Requiring congressional notification. Section 113(g)(1) obligates the President or U.S. Trade Representative to submit a written justification to six committees of jurisdiction at least 10 days before imposing or adjusting any tariff.
About FDD Action
FDD Action is a non-profit, non-partisan 501(c)(4) organization established to advocate for effective policies to promote U.S. national security and defend free nations. FDD Action serves as a trusted resource for congressional offices and executive branch policymakers navigating complex national security challenges, leveraging a team with decades of experience on Capitol Hill and in the policy arena.