Trade war | US Congress approves sanctions against Russia

Congress has passed a law for new Russia sanctions. Photo: dpa/AP/J. Scott Applewhite Washington. In the USA, after the Senate, the House of Representatives also voted for a sanctions law that is intended to increase pressure on Russia over the Ukraine war. In addition to direct punitive measures against Russian politicians and companies, the law is intended to further curb Russian oil and gas exports. They are an important source of income for Russia.

House Democrats voted for the bill with a bipartisan majority of 262 to 159. Seven Republicans voted against it. Votes from the Democrats were also required for the majority.

The law must now be signed by US President Donald Trump. He had previously indicated his approval. The Senate approved the project with a clear majority last month. It bears the name of Senator and Trump confidant Lindsey Graham, who died in July and was instrumental in pushing it forward.

Among other things, the law gives Trump the opportunity to impose sanctions on the five largest buyers of Russian energy. This also applies to the five countries that are most supportive of Russia in circumventing energy sanctions. This could further strain US trade relations with China and India, which purchase large quantities of Russian oil.

The first step is to identify the five largest buyers of Russian energy in the year before the law comes into force. Tariffs of up to 100 percent could be imposed on imports from these countries into the United States. Tariff rates may be adjusted later depending on whether a country reduces its purchases of Russian oil and gas. Which five countries are affected should be determined every 180 days.

There should be exceptions for countries whose imports account for less than 15 percent of Russian natural gas exports in a twelve-month period. Countries that take measures to reduce their purchases can also benefit from exemptions. “So our European allies are not affected here,” said Democratic Senator Richard Blumenthal in mid-July.

In addition to the Russia sanctions, the law also creates the basis for an extension of sanctions against Iran until 2031.

So far, Trump has not put pressure on China with appropriate tariffs because of its energy imports from Russia. He temporarily imposed a 25 percent tariff on goods from India because of purchases of Russian oil.

China's state and party leader Xi Jinping is expected in Washington next week. Trump invited him on his trip to China. The world's two largest economies have been in a heated trade conflict for a long time. dpa/nd

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