Source: United States House of Representatives – Congressman Michael McCaul (10th District of Texas)
The DROP Act targets foreign entities dealing in Russian oil to dry up the Kremlin’s primary war revenue stream
WASHINGTON – Today, U.S. Representative Michael McCaul (R-Texas) — chairman emeritus of the House Foreign Affairs Committee — introduced the Decreasing Russian Oil Profits (DROP) Act of 2026. This bipartisan legislation requires targeted sanctions on any foreign person or entity involved in the purchase, importation, or facilitation of Russian-origin crude oil and petroleum products.
Representatives Mike Lawler (R-N.Y.), chairman of the House Foreign Affairs Subcommittee on the Middle East and North Africa; Bill Keating (D-Mass.), ranking member of the House Foreign Affairs Subcommittee on Europe; Marcy Kaptur (D-Ohio), co-founder and co-chair of the Congressional Ukraine Caucus; Mike Quigley (D-Ill.); and Josh Gottheimer (D-N.J.) joined McCaul in introducing the legislation.
“Russian energy is the lifeblood of the Kremlin’s war machine, and the DROP Act would drain this primary source of revenue,” said McCaul. “Putin has made clear he has no intention of seeking peace until the cost of his continued bloodshed is too high. This bill will give the president more tools with which to place leverage on Putin, while ensuring our allies and partners around the world play their part. It’s time for every nation and individual to choose between doing business with the free world or continuing to bankroll Putin’s brutality.”
“Sanctions only work if they’re enforced. By giving the Administration authorities to target those enabling the Russian oil trade, we can strengthen our existing sanctions regime and cut off a key funding for Putin’s war machine. This has gone on long enough, and it’s time to use the full strength of American economic power to squeeze out the Kremlin,” said Lawler.
“Congress and the President must do more to ensure Putin and his war machine feel the consequences for their illegal actions. This legislation requires the imposition of sanctions on countries unless they can meet specific criteria to demonstrate their support for Ukraine,” said Keating. “Importantly, as we reach the 4th anniversary of this illegal war, this legislation shows continued bipartisan support for Ukraine as brave Ukrainian men and women defend their territory from Kremlin aggression.”
“If you traffic in Russian oil, you are funding Putin’s illegal war and full scale invasion of Ukraine,” said Kaptur. “As we approach the fourth anniversary of the beginning of the full scale invasion, we must take every step necessary to force Dictator Putin to end this bloody war. Russia’s brutal campaign to freeze Ukrainian civilians in their homes this winter, to erase Ukrainian culture, and to abduct Ukrainian children must be stopped once and for all. This new bipartisan legislation is a long overdue step to help cut off Russia’s oil revenue and strengthen the chances of securing a just and durable end to this conflict.”
“As a Co-Chair of the Congressional Ukraine Caucus, I’m proud to introduce the DROP Act to crack down on the Russian oil economy and curb Putin’s ability to attack Ukraine,” said Quigley. “Since Putin launched his full-scale invasion in 2022, Russia has weaponized the global oil ecosystem to fund its violent assault. This bipartisan bill will mandate sanctions on Russian petroleum products and close the price gap loophole—cutting off a major source of funding for Russia’s army.”
“It’s long past time that we tighten the screws on Russia’s oil exports bankrolling Putin’s brutal war in Ukraine. The bipartisan DROP Act closes these loopholes, cracks down on anyone purchasing Russian oil above the price cap, and ensures there are real consequences for helping fund Russia’s war of aggression,” said Gottheimer. “At the same time, it creates stronger incentives to support Ukraine’s defense and reconstruction. As this war continues, we must continue to stand firmly with the Ukrainian people.”
The legislation was also introduced in the Senate by U.S. Senators Dave McCormick (R-Penn.), Elizabeth Warren (D-Mass.), Chris Coons (D-Del.), and Jon Husted (R-Ohio).
Background:
The Russian Federation’s economy runs on oil exports, which fund the vast majority of its federal budget and military spending. While the U.S. has implemented various sanctions and restrictions, Russia increasingly circumvents those designations by using a “shadow fleet” of tankers and third-party intermediaries to move oil — often at prices that exceed international caps.
The DROP Act addresses this entire ecosystem by:
- Strengthening the Trump administration’s existing designations on the two Russian oil companies;
- Mandating sanctions on any foreign person or entity responsible for or complicit in the purchase of Russian petroleum products; and
- Closing loopholes that have allowed entities to charge above the international limit on the price for a barrel of Russian oil.
It also provides the administration with strategic flexibility allowing it to apply specific exception frameworks for countries that significantly reduce their Russian oil imports or provide substantial military and economic aid to Ukraine.
Click here to read full text of the DROP Act.
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