U.S. Lawmakers Target Russian Oil Revenue, Eye China’s Role and Inflation Act Tax Cuts

U.S. lawmakers are intensifying efforts to clamp down on Russia's oil and gas revenue streams amid growing concerns that energy sales continue to fund the Kremlin’s war efforts in Ukraine. A new bipartisan push in Congress is calling for stricter sanctions on Russian fossil fuel exports, with particular focus on curbing indirect flows through countries like China and India.

The renewed legislative drive comes as the House of Representatives, now under Republican control, advances a parallel initiative to dismantle key components of the Biden administration's Inflation Reduction Act (IRA)—specifically targeting clean energy tax credits that have spurred significant investments in renewables.

China’s Role Under Scrutiny
A central concern among U.S. lawmakers is China's continued importation of Russian crude oil, often at discounted rates. While Western nations have imposed price caps and trade restrictions to weaken Russia’s energy leverage, China and other non-aligned countries have provided economic lifelines that help stabilize Moscow’s oil revenue.

Senators from both parties have voiced frustration, suggesting that China’s actions undermine global sanctions and extend the conflict in Ukraine. Several proposals are now circulating on Capitol Hill that would penalize foreign firms or financial institutions facilitating Russian energy transactions.

Author: Global Ripple

Posted on: May 22, 2025