December 05, 2022

Toomey, Van Hollen Comment on G7 Price Cap Agreement

WASHINGTON – Today, U.S. Senators Chris Van Hollen (D-Md.) and Pat Toomey (R-Pa.), who have authored secondary sanctions legislation to hold Russia accountable for its war in Ukraine, released the following statement on the G7’s agreement to a price cap on Russian oil:

“The G7’s agreement to implement a price cap on Russian oil is a significant step in holding Russia accountable for its unprovoked war against Ukraine. To ensure the price cap is as effective as possible, we must monitor compliance closely, continue to reevaluate the cap level to cut off revenue that is funding Putin’s war, and utilize secondary sanctions to penalize any oil sales above the cap, if necessary. Our sanctions proposal will provide the Administration with the tools to enforce the price cap and will strengthen our ability to grind Putin’s war machine to a halt.”  

The Senators’ proposal will provide new sanctions authority to the Administration in its efforts to sever funding to Putin’s war machine. It strengthens the G7 price cap regime by imposing secondary sanctions on foreign entities involved in the purchase of Russian seaborne petroleum and petroleum products at a price above the cap. It also decreases the price cap over the period of three years to steadily deprive Russia of its oil profits. Clear and predictable consequences for violations will improve compliance and support the long-term success of the Administration’s plan.

The text of the Senators’ legislation is available here.

Senators Van Hollen and Toomey have previously joined forces to successfully pass sanctions legislation on a number of fronts, including North Korea sanctions legislation, the Otto Warmbier BRINK Act, which was signed into law in 2019, and legislation sanctioning those responsible for the crackdown on Hong Kong’s autonomy, the Hong Kong Autonomy Act, which was signed into law in 2020. Senators Van Hollen and Toomey are both members of the Senate Committee on Banking, Housing, and Urban Affairs.