H.R. 7094: No Aid for Russian Energy Act

The bill titled the No Aid for Russian Energy Act proposes measures to prevent U.S. persons from engaging in activities that support the energy sector in Russia. Here’s a breakdown of what the bill includes:

Prohibition of Exporting Energy Equipment and Services

The President is mandated to enforce a prohibition on the export, sale, or supply of petroleum equipment and services to anyone in the Russian Federation. This includes any transaction related to oil and gas operations.

Responsibility of Parent Companies

U.S.-owned or controlled entities located outside the U.S. will also be prohibited from engaging in similar activities that would breach this law, holding parent companies accountable for their subsidiaries' actions.

Exceptions to the Prohibition

There are specific exceptions to these prohibitions:

• Activities related to isotopes derived from petroleum for medical, agricultural, or environmental uses are exempt.

Sanctions for Violations

Sanctions will be imposed on foreign entities or individuals that violate these measures, which may include:

• Asset Blocking: The President can block the property and interests of violators that are located in the U.S.
• Inadmissibility: Foreign individuals who are connected to violations will be barred from entering the U.S. and may have their visas revoked.

Administrative Measures

The President is granted authority to implement these regulations and enforce penalties similar to those outlined in the International Emergency Economic Powers Act. Waivers for sanctions can be issued for up to 180 days but must be justified as vital to U.S. national security interests.

Definitions Included in the Bill

The bill defines key terms such as:

• Petroleum Equipment and Services: This includes various types of equipment, software, and services used in oil exploration and production.
• United States Person: This encompasses U.S. citizens, permanent residents, and entities organized in the U.S.
• Foreign Person: An individual or entity not recognized as a U.S. person.

Relevant Companies

• XOM (Exxon Mobil Corporation) - as an international oil and gas operation, constraints on exporting equipment and services could hamper ongoing and future projects in Russia.
• CVX (Chevron Corporation) - similar to Exxon, Chevron’s operations could be affected by limitations on energy sector involvement in Russia.
• SLB (Schlumberger Limited) - a major provider of oilfield services, this company would be directly impacted by restrictions on exporting equipment and related services to Russia.