But rank-and-file lawmakers are growing impatient for action, as demonstrated by several bipartisan pairs of senators who have raised and endorsed bills and resolutions demanding an increase in punitive measures against Russian actors caught undermining the United States. On Tuesday, Sens. Menendez and Lindsey O. Graham (R-S.C.) teased forthcoming legislation that would immediately step up sanctions on Russian oligarchs and the country’s energy, financial and cyber sectors; tighten reporting requirements to Congress about existing sanctions implementation; and require Senate approval for any bid to withdraw from NATO. Also Tuesday. Sens. Patrick J. Toomey (R-Pa.) and Chris Van Hollen (D-Md.) sent a letter to Treasury Secretary Steven Mnuchin demanding that the department impose sanctions on the Russians cited in special counsel Robert S. Mueller III’s latest indictment.<doc-sep>Instead of hitting Russia's energy sector, Washington's sanctions imposed on Moscow since 2014 have finally backfired on major US oil and gas companies, depriving them of lucrative opportunities and forcing them out of Russia. While Russia is boosting oil output following a decision by OPEC and non-OPEC producers to ease extraction cuts, US petroleum companies are reaping the bitter fruits of Washington's anti-Russian sanctions. After the imposition of sanctions against Moscow over Crimea's reunification with Russia in 2014 and their subsequent extension under the pretext of Russia's alleged meddling in the US 2016 presidential election, major American oil companies were forced to withdraw from the country's energy projects. Thus, in March 2018, Exxon Mobil signaled that it would quit some joint ventures with Russia's Rosneft, including exploration works in the Kara Sea, above the Arctic Circle. Last year, the company voiced its discontent with the restrictions , referring to the fact that Royal Dutch Shell and BP had gained a competitive advantage over their American counterparts and jumped at the opportunity to fill their niche in Russia. On July 3, 2017, The Wall Street Journal noted that Exxon Mobil and "other energy companies" argued that the extension of sanctions "could shut down oil and gas projects around the world that involve Russian partners." The same month, the US Treasury fined Exxon Mobil $2 million for the alleged violation of anti-Russia sanctions in May 2014. The move was dubbed "unfair" by the US oil corporation. However, Exxon Mobil's troubles did not end there, as Rosneft has reportedly filed a 26.7 billion ruble ($425.3 million) suit against Exxon Neftegaz Ltd., the operator of the Sakhalin-1 oil and gas project — the American company's only Russia-based venture not affected by the US sanctions. Rosneft is accusing the participants of the endeavor of "unjust enrichment and interest gained by using other people's money" between July 10, 2015, and May 31, 2018. DETER Act and US Energy Giants Meanwhile, American lawmakers are seemingly not going to make it easier for US energy giants: Senator Marco Rubio (R-FL) is pushing ahead with his bipartisan Defending Elections from Threats by Establishing Redlines (DETER) Act. Under the bill, the Director of National Intelligence (DNI) would inform Congress on whether any foreign government has meddled in a vote within one month after every federal election. In case Russia "interferes" in the election process, "the bill mandates a set of severe sanctions that must be implemented within ten days of the DNI's determination." Citing two Senate aides, Reuters reported that lobbyists representing oil and gas corporations with interests in Russia are opposing the legislation. Similarly, the US-Russia Chamber of Commerce, which includes Shell, Exxon Mobil and Chevron, is signaling its growing concerns about the potential anti-Russian measures. US Sanctions Failed to Hit Russian Energy Sector As of yet, the US sanctions have failed to deal a blow to Russia's energy industry. Although Washington's restrictions are preventing Russian oil giants from purchasing drilling equipment from US producers, Moscow's European partners have all the necessary technologies to proceed with the exploration and development of Russia's vast energy reserves. Thus, Italy's ENI is continuing to drill wells in the Black Sea together with Rosneft, while the French Total is working on Russia's Yamal liquefied natural gas project. Total holds a 20 percent direct interest in the endeavor. In January 2018, the shareholder purchased the first batch of liquefied hydrocarbons from Yamal LNG. After the protracted period of slump between 2014 and 2016, oil prices have largely recovered, prompting Russia to step up its crude output. In the first week of June, Russia's oil production reached 11.1 million barrels per day (bpd), while in early July, the country's oil output amounted to 11.193 bpd. According to Russian Energy Minister Alexander Novak, Russia is going bolster its crude production by around 200,000 bpd in the second half of 2018. The decision to increase crude production was taken by a consortium of OPEC and non-OPEC countries after their previous attempts to balance the global energy market through oil-supply cuts had proven effective.<doc-sep>CAATSA waiver though general in nature is intended at preventing US sanctions on India, which is planning to buy five S-400 Triumf air defence systems for around $4.5 billion from Russia. Washington: A US Congressional committee on Tuesday proposed waivers for countries like India from punitive sanctions against those doing business with Russia's defence industry. The Senate and House Armed Services Committee in a joint conference report to the National Defense Authorisation Act (NDAA)-2019 provided a modified waiver to section 231 of the Countering America's Adversaries Through Sanctions Act or CAATSA. A conference report refers to the final version of a bill that is negotiated between the House of Representatives and the Senate via the conference committee. CAATSA waiver though general in nature is intended at preventing US sanctions on India, which is planning to buy five S-400 Triumf air defence systems for around $4.5 billion from Russia. Unlike the existing version of the act, the proposed modified waiver requires presidential certifications designed to protect US alliances, military operations, and sensitive technology, said a statement issued by the Senate Armed Services Committee after the two committees announced details of the conference report. The John McCain National Defence Authorisation Act for Fiscal Year 2019, which authorises funding for the Department of Defense and the national security programmes of the Department of Energy, encourages US allies and partners to reduce the inventory of Russian-produced major defence equipment and advanced conventional weapons. At the same time, it excludes the possibility of waivers for Russian intelligence agencies and other entities engaged in cyber attacks. The move comes days after US defence secretary Jim Mattis asked the Congress to give the secretary of state the waiver authority. "Doing so allows nations to build a closer security relationship with the US as they continue to transition from reliance on Russian military equipment," he said. "The fundamental question we must ask ourselves is do we wish to strengthen our partners in key regions or leave them with no other option than to turn to Russia, thereby undermining a once-in-a-generation opportunity to more closely align nations with the US vision for global security and stability," Mattis said. The Pentagon, the State Department and the Indian Embassy here did not immediately respond to request for their comments on the latest CAATSA development. Before the NDAA 2019 is signed into law by president Donald Trump, the conference report, which aligns the different House and Senate versions of the defense budget, needs to be passed by the two chambers of the US Congress. Traditionally, it is considered to be a done deal, as this has the support of the leadership of both the ruling Republican party and the opposition Democratic party. The proposed legislative amendments would provide a valid ground to the Trump administration to provide necessary waiver to India, even if it goes ahead with its decision to buy S-400. India's dependence on Russia for its military hardware has experienced sustained reduction over the last one decade. At the same time, India's defence trade with the US has increased. India is in the process of placing orders worth of billions of dollars to the US – ranging from fighter jets to unmanned drones. Over the past few months, CAATSA had emerged as a major irritant to India-US relationship. An India-centric top American business advocacy group today welcomed the Congressional move. "The language (of the report) would represent a special carve-out for India on a delicate political issue," Mukesh Aghi, the president of the US-India Strategic and Partnership Forum (USISPF) said. "If enacted, the language advanced by the NDAA conference committee demonstrates the US Congress' bipartisan commitment to the US-India relationship," said Aghi. "The exemption provides flexibility for strategic partners and allies to move away from the use of Russian military equipment to American equipment, while ensuring that US defence and security interests remain protected," the USISPF said. Early this month, influential US lawmakers had indicated that they were working to get a waiver for India. The Indian Ambassador to the US, Navtej Singh Sarna, said India was not the target of the federal law and it should not become collateral damage of it. The administration has to find a way in which they can find a waiver for the partner on this particular thorny issue, he had then said.<doc-sep>
WASHINGTON (Reuters) - Republicans who control the U.S. Congress are hesitating to advance tough new Russia sanctions legislation as fears of damage to American companies slow efforts to quickly send Moscow a message against meddling in the next U.S. election. The Capitol dome is seen amongst blooming flowers in Washington, U.S., April 26, 2018. REUTERS/Aaron P. Bernstein Unlike a year ago, when Congress worked with lightning speed on a sanctions law targeting Russia, North Korea and Iran, some lawmakers said on Tuesday the Senate and House of Representatives were carefully weighing their response to growing fears that Moscow is plotting to interfere in November’s congressional elections. Republicans and Democrats were united in their repudiation last week of President Donald Trump’s failure to publicly condemn Russian President Vladimir Putin for interfering in the 2016 presidential election, despite findings by U.S. intelligence. Russia has denied such meddling occurred. With a five-week summer recess set to begin in the House on Friday and the Senate taking an early August week-long recess, backers of legislation to impose harsh new sanctions on Russia feared the effort could be losing steam. A bipartisan group of senators, led by Republican Senator Marco Rubio and Democratic Senator Chris Van Hollen, is pushing “DETER Act” legislation putting Putin on notice that his country would be slammed with a torrent of U.S. sanctions if Russia interfered in any future American election. It had the backing of several senior lawmakers, although it was unclear how quickly it could move through committees. “That proposal is one that I think is generating a good amount of interest, and I think it’s a pretty solid approach, really,” said No. 3 Senate Republican John Thune. But leading congressional Republicans and U.S. energy firms concerned about losing business with Russia have been seeking to put on the brakes. Congressional sources said last week that U.S oil and gas firms were lobbying against the tighter sanctions that could affect their investments in Russia. “We don’t want to rush in with our hair on fire,” Senate Foreign Relations Committee Chairman Bob Corker told reporters on Tuesday, adding that a new sanctions bill had to be done “in a thoughtful way.” ‘STUCK IN THE MUD’ Senate Democratic leader Chuck Schumer declared on Monday that new Russia sanctions legislation was “stuck in the mud,” as he accused Republicans of being “unwilling, maybe afraid” to push back against Trump. Despite a possible loss of momentum on sanctions, Republican leadership had tough words for Putin on Tuesday. House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell, both Republicans, separately proclaimed that Putin would not be welcome in the U.S. Capitol if he accepted Trump’s invitation to visit Washington this autumn. Last week, Ryan called Russia’s government “menacing” as he urged a new round of sanctions. But so far, the only firm action by Congress since Helsinki is a move to loosen - not tighten - the noose on Russia. The Trump administration has convinced a group of lawmakers to ease a sanctions regime aimed at Moscow that has made it difficult for U.S. allies such as India, Indonesia and Vietnam to purchase weapons from Russia. The legislation, deep inside a massive bill authorizing U.S. military programs, still has to be approved by the full House and Senate. But Democratic Senator Chris Coons predicted that the DETER bill would garner overwhelming support if brought to the Senate floor. The sanctions law last year passed 98-2. “Whatever the president’s concerns are, I think he would ultimately sign it. He can do math,” Coons told reporters.