S2904119th CongressWALLET

SHADOW Fleet Sanctions Act of 2026

Sponsored By: Senator James Risch

In Committee

Summary

Targets the Russian “shadow fleet” and its enablers. The bill sets new sanctions, reporting rules, a public vessel database, and flag‑state standards to stop shipping and insurance schemes that hide Russian oil and other exports.

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  • Maritime owners, operators, insurers, and crew face blocking sanctions and visa bans if they knowingly facilitate shadow‑fleet shipments or evade price caps, with designation guided by allied lists and clear behavioral indicators.
  • Port operators in the People’s Republic of China and India can be sanctioned for receiving Russian oil above the price cap or handling already‑sanctioned vessels, creating direct risk for terminals that accept suspect shipments.
  • The State Department, Treasury, and other agencies must build a public database, expand reports, and modernize sanctions work. The bill authorizes targeted funding, including $15 million per sanctions office for FY2026–FY2027 and $200 million for a Countering Russian Influence Fund.

*Authorizes new discretionary spending including the specified appropriations and therefore increases federal outlays in 2026–2027.*

Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 2 costs, 2 mixed.

Sanctions on shadow‑fleet ships and helpers

This bill would require the President to sanction "shadow fleet" vessels and the people and companies that help them. For ships moving crude or arms to evade sanctions, sanctions must be imposed within 90 days, and for Russian‑origin petroleum products and facilitators within 180 days. The bill would let officials use 12 listed maritime warning signs (for example, turning off ship trackers) and treat a ship as suspect if it shows three or more signs. It would also require regular public reporting about vessel sanctions and allow allied designations to be used as prima facie evidence.

Stronger tracking of Russian oil flows

This bill would set up repeated, coordinated reporting and monitoring of Russian‑origin crude and refined products. An interagency report would be due not later than 180 days and then every two years on volumes, whether such oil is reaching the U.S., and estimates of Russian revenue since January 2022. The President would also provide annual public reports (first due within 120 days and then yearly for five years) on exports, prices, and parties involved, with unclassified parts posted on the Energy Information Administration website. Treasury would monitor price‑cap compliance, help other governments enforce it, and work to identify evaders.

China evasion strategy and ship rules

This bill would require the State Department to produce a written strategy on the People's Republic of China's role in evading sanctions within 120 days. The plan would identify companies, ships, and monitoring steps (for example, ship‑to‑ship transfers and turned‑off trackers) and propose deterrence measures aimed at insurers and parent companies. The bill would also set U.S. minimum standards for flag‑state registries and require an assessment and engagement plan within one year, with annual updates through 2030.

Rapid presidential reports on escalation

This bill would require the President to decide quickly if Russia or proxies are escalating military measures in specified sea areas. An initial determination would be due within 15 days of enactment. For the first year, determinations would be made at least every 30 days, and thereafter at least every 90 days. Each determination would be reported to Congress.

Funding for sanctions and Ukraine aid

This bill would authorize emergency appropriations of $200 million for the Countering Russian Influence Fund for each of FY2026 and FY2027. It would also authorize $15 million in each of FY2026 and FY2027 for the Office of Sanctions Coordination and $15 million in each year for OFAC to modernize sanctions tools. The State and Defense departments would jointly report on remaining drawdown authorities for Ukraine within 30 days and every 30 days after that, and some export licensing timing for Ukraine would be shortened from 30 days to 15 days.

Sanctions and reports on defense suppliers

This bill would require frequent reports (first due within 60 days and then every 90 days) naming foreign persons who knowingly sold or provided goods or services for Russia's defense industry. Covered items include CNC machine tools, semiconductors and manufacturing equipment, specialty additives, military‑grade fiber optic cables, and advanced sensors. Persons named could be made ineligible for U.S. visas and have U.S. property blocked; the President must use emergency economic authorities (IEEPA) where appropriate. The bill allows a short wind‑down window for some entities that certify good‑faith winding down within 30 days and requires State to modernize sanction designation capabilities.

Sanctions rules, exceptions, and sunset

This bill would authorize use of IEEPA emergency economic powers to carry out these sanctions and make violations subject to IEEPA civil and criminal penalties. The President would have 180 days to write implementing regulations and must brief Congress 10 days before issuing them. The bill also lists exceptions for humanitarian aid, UN obligations, intelligence activities, and vessel safety, and it would end the listed sanction authorities and any sanctions under them 10 years after enactment.

Sponsors & CoSponsors

Sponsor

James Risch

ID • R

Cosponsors

  • Jeanne Shaheen

    NH • D

    Sponsored 9/18/2025

  • Tom Cotton

    AR • R

    Sponsored 9/18/2025

  • Sheldon Whitehouse

    RI • D

    Sponsored 9/18/2025

  • Pete Ricketts

    NE • R

    Sponsored 9/18/2025

  • Richard Blumenthal

    CT • D

    Sponsored 9/18/2025

  • Christopher Coons

    DE • D

    Sponsored 9/18/2025

  • Lindsey Graham

    SC • R

    Sponsored 9/18/2025

  • Timothy Kaine

    VA • D

    Sponsored 9/18/2025

  • Roger Wicker

    MS • R

    Sponsored 9/19/2025

  • John Curtis

    UT • R

    Sponsored 9/19/2025

  • Tammy Duckworth

    IL • D

    Sponsored 9/19/2025

  • John Cornyn

    TX • R

    Sponsored 10/30/2025

  • Ruben Gallego

    AZ • D

    Sponsored 10/30/2025

Roll Call Votes

No roll call votes available for this bill.

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