SPIGOT Act of 2022
Bill: H.R.6953 | Sponsor: Rep. Khanna, Ro (D-CA)
Policy area: International Affairs

Summary:
Severing Putin's Immense Gains from Oil Transfers Act of 2022 or the SPIGOT Act of 2022
This bill prohibits the importation of crude oil and petroleum products from Russia. The President may waive this prohibition by meeting certain requirements, such as certifying to Congress that the import prohibition would unduly impact energy prices for U.S. consumers.
The bill also requires the President to impose sanctions on foreign individuals and entities that are involved with (1) importing crude oil and petroleum products from Russia to the United States, and (2) acts of corruption or serious human rights abuses.

To prohibit the importation of crude oil and petroleum products from 
  the Russian Federation, to impose sanctions with respect to persons 
 involved in the importation of such crude oil and petroleum products 
   who have engaged in acts of corruption or who are responsible for 
          serious human rights abuses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Severing Putin's Immense Gains from 
Oil Transfers Act of 2022'' or the ``SPIGOT Act of 2022''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) In February 2022, the Russian Federation launched a 
        large scale invasion of Ukraine that violated Ukraine's 
        sovereignty and territorial integrity.
            (2) In 2021, the Russian Federation became the second-
        largest exporter of crude oil and petroleum products to the 
        United States, after Canada.
            (3) In 2020, 7 percent of all petroleum imports to the 
        United States came from the Russian Federation, which is more 
        than was imported from the Kingdom of Saudi Arabia.
            (4) The United States private sector imported 848,000 
        barrels of oil from the Russian Federation per day in June 
        2021.
            (5) From January through December 2021, the United States 
        imported 245,194,000 barrels of oil from the Russian 
        Federation, which at an annual average of $71 per barrel equals 
        approximately $17,400,000,000 in oil imports.
            (6) As of February 2022, oil prices have risen to $92 per 
        barrel.
            (7) According to the Ministry of Finance of the Russian 
        Federation, 36 percent of all revenue of the Government of the 
        Russian Federation came from the oil and gas sector in 2021. In 
        2019 and 2020, the overall percentage of revenue of that 
        Government that came from the oil and gas sector reached 39 and 
        28 percent, respectively.
            (8) The President of the Russian Federation, Vladimir 
        Putin, relies on a network of government officials, heads of 
        state-owned enterprises, and business leaders to maintain his 
        grasp on power.
            (9) Russian-owned energy entities that have ties to 
        individuals aligned with Putin see benefits from reliance by 
        the United States on imports of crude oil and petroleum 
        products from the Russian Federation.
            (10) In early 2021, political prisoner Alexei Navalny's 
        Anti-Corruption Foundation outlined some of the corrupt 
        linkages between Russian oil giant Rosneft, with key Putin ally 
        Igor Sechin as its head, and Vladimir Putin himself.
            (11) The United States Government has already taken action 
        against individuals with links to the energy sector of the 
        Russian Federation, such as Igor Sechin, Boris and Arkady 
        Rotenberg, Kirill Shamalov, Viktor Vekselberg, and Sergey 
        Frusenko, under--
                    (A) the Global Magnitsky Human Rights 
                Accountability Act (subtitle F of title XII of Public 
                Law 114-328; 22 U.S.C. 2656 note);
                    (B) Executive Orders 13661 and 13662 (50 U.S.C. 
                1701 note; relating to blocking property of additional 
                persons contributing to the situation in Ukraine), 
                codified by section 222 of the Countering America's 
                Adversaries Through Sanctions Act (22 U.S.C. 9522); and
                    (C) Executive Order 13582 (50 U.S.C. 1701 note; 
                relating to blocking property of the Government of 
                Syria and prohibiting certain transactions with respect 
                to Syria).
            (12) While sanctions imposed by the United States in 
        response to the Russian Federation's war of aggression against 
        Ukraine have largely exempted the energy sector, on February 
        24, 2022, the United States Government announced action against 
        the following 2 additional individuals with links to that 
        sector:
                    (A) Ivan Sechin, son of Igor Sechin, and reportedly 
                a deputy head of a department at Rosneft.
                    (B) Andrey Patrushev, a leader of Gazprom Neft, and 
                son of Nikolai Platonovich Patrushev, the Secretary of 
                the Russian Security Council.
            (13) Despite ongoing United States imports of crude oil and 
        petroleum products from the Russian Federation and existing 
        laws and policies against supporting human rights abuses, there 
        has been no United States Government-led analysis of the 
        linkages between the energy sector of the Russian Federation 
        and corruption or human rights abuses.
            (14) Oil imported from the Russian Federation contributes 
        to the overall United States carbon footprint, which makes up 
        nearly 15 percent of all global greenhouse gas emissions.
            (15) On January 27, 2021, President Joseph R. Biden issued 
        Executive Order 14008 (86 Fed. Reg. 7619; relating to tackling 
        the climate crisis at home and abroad), which identifies 
        climate change as an essential element of the foreign policy 
        and national security strategy of the United States.
            (16) The Department of Defense cites climate change as a 
        national security threat, noting that 100 percent of geographic 
        combatant commands were affected by climate-related impacts in 
        2019, and more than 1,700 military installations continue to be 
        threatened by sea-level rise. Extreme weather events have 
        caused more than $796,100,000,000 in damage in the United 
        States during the 5 years before the date of the enactment of 
        this Act alone.
            (17) President Biden has set an economy-wide target for the 
        United States to reduce its net greenhouse gas emissions by 50 
        to 52 percent below 2005 levels by 2030, which will require 
        decarbonization in the energy, buildings, and transportation 
        sectors.

SEC. 3. SENSE OF CONGRESS.

    It is a sense of Congress that--
            (1) the reliance of the United States on oil imported from 
        the Russian Federation presents a national security liability;
            (2) a prohibition on imports of oil from the Russian 
        Federation could deprive the Russian Federation upwards of 
        $20,000,000,000 or more revenue from the United States in 2022;
            (3) Russian energy entities are controlled by Russian 
        executives and oligarchs with close ties to Vladimir Putin, and 
        profits from the energy sector may be implicated in corruption 
        and in fueling human rights abuses globally and in the Russian 
        Federation;
            (4) the United States Government must--
                    (A) investigate the links described in paragraph 
                (2) to avoid funding activities tied to human rights 
                abuses and corruption through the purchase of oil 
                imported from the Russian Federation;
                    (B) develop a comprehensive strategy to replace oil 
                imported from the Russian Federation with domestic 
                carbon-free energy sources; and
                    (C) invest in renewable energy alternatives to 
                replace foreign carbon-intensive energy imports; and
            (5) actively decarbonizing the United States energy economy 
        is of vital strategic interest to the national security and 
        climate change reduction targets of the United States.

SEC. 4. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this Act, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Finance, the Committee on Foreign 
        Relations, the Committee on Banking, Housing, and Urban 
        Affairs, and the Committee on Energy and Natural Resources of 
        the Senate; and
            (2) the Committee on Ways and Means, the Committee on 
        Foreign Affairs, the Committee on Financial Services, and the 
        Committee on Energy and Commerce of the House of 
        Representatives.

SEC. 5. REPORT ON LINKS BETWEEN RUSSIAN ENERGY ENTITIES, HUMAN RIGHTS 
              VIOLATIONS, AND CORRUPTION.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary of State, 
in coordination with the Secretary of Energy, the Secretary of the 
Treasury, the Secretary of Defense, the Secretary of Commerce, and the 
Director of National Intelligence, shall submit to the appropriate 
congressional committees a report--
            (1) identifying which Russian, United States, and 
        international entities are involved with the importation of 
        crude oil and petroleum products from the Russian Federation 
        into the United States;
            (2) describing the relationship of those entities, and 
        members of their executive boards, with Vladimir Putin and 
        other Russian persons subject to sanctions imposed by the 
        United States;
            (3) identifying whether any individuals described in 
        paragraph (2) or entities described in paragraph (1) have 
        engaged in acts of corruption or are responsible for or 
        complicit in, or have directly or indirectly engaged in, 
        serious human rights abuses;
            (4) identifying the ways in which revenue generated from 
        the exportation of crude oil and petroleum products to the 
        United States and to other countries has helped insulate the 
        Russian economy since the United States and international 
        community imposed sanctions in response to the Russian 
        Federation's illegal war of aggression against Ukraine;
            (5) identifying alternative suppliers for the importation 
        of crude oil and petroleum products, other than from the 
        Russian Federation, that minimize risks to United States 
        consumers;
            (6) a comprehensive strategy to prioritize carbon-free 
        energy sources and reduction of the demand for fossil energy as 
        alternatives to crude oil and petroleum products imported from 
        the Russian Federation; and
            (7) assessing why United States entities are choosing to do 
        business with entities described in paragraph (1) and what 
        advantages doing business with such entities presents.
    (b) Form of Report.--The report required by subsection (a) shall be 
submitted in unclassified form but may include a classified annex.

SEC. 6. PROHIBITION ON IMPORTATION OF CRUDE OIL AND PETROLEUM PRODUCTS 
              FROM THE RUSSIAN FEDERATION.

    (a) In General.--Effective on the date that is 30 days after the 
date of the enactment of this Act, the importation of crude oil and 
petroleum products from the Russian Federation into the United States 
is prohibited.
    (b) Presidential Waiver.--
            (1) In general.--The President may waive the prohibition 
        under subsection (a) for a period of not more than one year 
        if--
                    (A) the report required by section 5 has been 
                submitted to the appropriate congressional committees; 
                and
                    (B) the President submits to the appropriate 
                congressional committees a certification that--
                            (i) the importation of crude oil and 
                        petroleum products from the Russian Federation 
                        does not pose a significant risk to the 
                        national security of the United States; and
                            (ii) a prohibition on the importation of 
                        crude oil and petroleum products from the 
                        Russian Federation would unduly impact energy 
                        prices for United States consumers.
            (2) Renewal.--The President may renew a waiver issued under 
        paragraph (1) on annual basis if, before the termination date 
        of the previous waiver--
                    (A) the most recent report required by section 5 
                has been submitted to the appropriate congressional 
                committees; and
                    (B) the President submits to the appropriate 
                congressional committees a certification described in 
                paragraph (1)(B).
            (3) Form of certification.--A certification submitted under 
        paragraph (1)(B) or (2)(B) shall be submitted in unclassified 
        form but may include a classified annex.

SEC. 7. IMPOSITION OF SANCTIONS.

    (a) In General.--Upon receiving a report required by section 5, the 
President shall use the authorities provided by the provisions of law 
specified in subsection (b) to impose sanctions with respect to any 
foreign individual or entity identified under section 5(a)(3) as having 
engaged in acts of corruption or who are responsible for or complicit 
in, or have directly or indirectly engaged in, serious human rights 
abuses.
    (b) Provisions of Law Specified.--The provisions of law specified 
in this subsection are the following:
            (1) The Global Magnitsky Human Rights Accountability Act 
        (subtitle F of title XII of Public Law 114-328; 22 U.S.C. 2656 
        note).
            (2) The Sergei Magnitsky Rule of Law Accountability Act of 
        2012 (title IV of Public Law 112-208; 22 U.S.C. 5811 note).
            (3) Title II of the Countering America's Adversaries 
        Through Sanctions Act (22 U.S.C. 9501 et seq.).
            (4) The International Emergency Economic Powers Act (50 
        U.S.C. 1701 et seq.).
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