S.Amdt. 5878

SA 5878 aims to add a new section (Section 1230) to bill S. 4784. Its primary purpose is to require the President to impose sanctions on foreign persons involved in the trade of petroleum products from the Russian Federation.

Targeted Actions The amendment targets foreign persons who:

• Purchase or import Russian crude oil or petroleum products.
• Facilitate financial transactions for these activities.
• Provide material support or assistance for these activities.
• Serve as a CEO or board member of an entity doing any of the above.

Sanctions and Penalties The President would use powers from the International Emergency Economic Powers Act to block and prohibit all transactions involving property and interests in property of the targeted foreign persons if those assets are in the U.S. or controlled by a U.S. person.

Exceptions The President may apply up to two of the following exception frameworks:

• Fund Isolation: For countries that use funds from Russian oil purchases only for food, medicine, medical devices, or agricultural commodities and commit to reducing Russian oil purchases.
• Ukraine Support Account: For purchases where a per-barrel payment is deposited into an account for Ukraine's benefit, specifically for defense articles or purposes outlined in the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act.
• General Support for Ukraine: For countries providing significant military, humanitarian, or economic support to Ukraine.
• Port-Specific Exceptions: Temporary exceptions for specific Russian ports for up to 270 days, provided they do not account for more than half of Russia's 2025 oil export capacity.

Duration These provisions and any resulting sanctions will end 5 years after the Act is enacted.