U.S. Rep. Michael McCaul (R-TX) on Feb. 11 unveiled legislation that would require targeted sanctions on any foreign person or entity involved in the purchase, importation, or facilitation of Russian-origin crude oil and petroleum products.
The Decreasing Russian Oil Profits (DROP) Act of 2026, H.R. 7506, a bipartisan bill which Rep. McCaul introduced alongside five original cosponsors, including U.S. Rep. Bill Keating (D-MA), aims to bolster America’s existing sanctions and cut off key funding for Russian Federation President Vladimir Putin’s war machine.
“Russian energy is the lifeblood of the Kremlin’s war machine, and the DROP Act would drain this primary source of revenue,” Rep. McCaul said. “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,” added the congressman. “It’s time for every nation and individual to choose between doing business with the free world or continuing to bankroll Putin’s brutality.”
The Russian Federation’s economy runs on oil exports, which fund the majority of its federal budget and military spending. While the U.S. has implemented various sanctions and restrictions, Russia increasingly circumvents them by using a “shadow fleet” of tankers and third-party intermediaries to move oil — often at prices that exceed international caps, according to a bill summary provided by Rep. McCaul’s staff.
If enacted, H.R. 7506 would strengthen the administration’s existing designations on the two Russian oil companies; mandate sanctions on any foreign person or entity responsible for or complicit in the purchase of Russian petroleum products; and close loopholes that have allowed entities to charge above the international limit on the price for a barrel of Russian oil, the summary says.
The bill also would provide the administration with flexibility to apply specific exception frameworks for countries that significantly reduce their Russian oil imports or provide substantial military and economic aid to Ukraine.
“Congress and the president must do more to ensure Putin and his war machine feel the consequences for their illegal actions,” said Rep. Keating. “This legislation requires the imposition of sanctions on countries unless they can meet specific criteria to demonstrate their support for Ukraine.”
The legislation was also introduced by U.S. Sens. Dave McCormick (R-PA) and Elizabeth Warren (D-MA) in the Senate.