Ukraine Support Act: Billions in Aid, 500% Russian Tariffs, and Lend-Lease Extended to 2028

The Ukraine Support Act is a massive piece of legislation aimed at significantly boosting Ukraine's ability to defend itself and rebuild, while simultaneously hitting the Russian Federation with a broad and deep set of economic penalties. Think of it as a multi-front effort: more money and gear for Ukraine, and a much tougher economic environment for Russia. Key highlights include extending the Ukraine Democracy Defense Lend-Lease Act of 2022 through fiscal year 2028 (Sec. 201), authorizing up to $8 billion in direct loans for Ukraine and NATO allies (Sec. 202), and creating a Ukraine Reconstruction Trust Fund (Sec. 110). On the flip side, it slaps at least a 500% import duty on all Russian goods (Sec. 314) and rolls out extensive sanctions across Russian finance, industry, and key individuals.

More Than Just Bullets: A Financial and Equipment Lifeline

This bill isn't just about sending weapons; it's about sustained support. The extension of lend-lease authority (Sec. 201) means the U.S. can continue to loan or lease military equipment to Ukraine and impacted Eastern European countries. This is like reviving a World War II-era tool, designed to get critical supplies where they're needed quickly. Then there's the $8 billion in potential direct loans (Sec. 202) for Ukraine and NATO allies to beef up their defenses, plus dedicated funding for Baltic countries to strengthen their military and border security (Sec. 203), including $30 million per country for Foreign Military Financing. The Ukraine Security Assistance Initiative, a program providing training and equipment, also gets a funding boost and an extension to December 2027 (Sec. 204).

Looking ahead, the bill establishes the Ukraine Reconstruction Trust Fund (Sec. 110). And here’s a novel way to help fill it: Section 316 imposes a 100% tax on any interest or dividends earned from already blocked Russian and Belarusian government assets. That captured money is earmarked for this reconstruction fund. It’s essentially an attempt to make seized assets from aggressor states help pay for the recovery of the nation they attacked.

The Economic Squeeze Play: Sanctions Get Sharper Teeth

Get ready for a long list, because Title III is all about sanctions and export controls, and many of these measures activate if the President determines Russia is still actively waging war, refusing good-faith peace talks, or violating a peace agreement (Sec. 301). The bill targets major Russian financial institutions like Sberbank and VTB (Sec. 302), and aims to cut off sanctioned banks from SWIFT, the global financial messaging network (Sec. 309). If you're a bank and can't use SWIFT, doing international business becomes incredibly difficult.

Russia's key industries aren't spared. Sanctions are mandated for companies in oil and gas, coal, and mineral extraction (Sec. 303). There are specific sanctions for vessels caught transporting Russian oil above the G7 price cap (Sec. 308). And if you thought Russian oil was getting into the U.S. through a backdoor by being refined in another country, Section 315 tries to slam that shut by banning imports of energy products made with Russian crude, no matter where they were processed. High-profile individuals, from top government officials to military commanders (Sec. 304), and those involved in the kidnapping of Ukrainian children (Sec. 312) or the construction of a tunnel to Crimea (Sec. 305), are also in the crosshairs. Even Russia's state nuclear energy corporation, Rosatom, faces sanctions (Sec. 307), though there's a waiver for producing essential medical isotopes.

Beyond direct sanctions, U.S. persons will be prohibited from dealing in newly issued Russian sovereign debt (Sec. 310). And remember those 500% import duties on Russian goods (Sec. 314)? If a Russian-made item used to cost $10 to import, this could make it $50, effectively pricing it out of the U.S. market. Export controls (Sec. 313) are also tightened, making it harder for Russia to get foreign-produced items that use U.S. technology, especially if those items have potential military applications – think advanced electronics or software.

Rebuilding and Pushing Back: Beyond the Front Lines

The bill also looks at Ukraine's long-term recovery and the information war. A Special Coordinator for Ukrainian Reconstruction will be established within the State Department (Sec. 107) to help manage U.S. efforts and encourage private investment. To boost economic confidence, vessel war risk insurance eligibility is expanded for ships trading with Ukraine (Sec. 105), and a new "Insurance for Ukraine Initiative" (Sec. 106) aims to further support this.

Recognizing the role of information, the bill authorizes $250 million for Radio Free Europe/Radio Liberty in fiscal year 2026 to bolster its operations, particularly in countering Russian disinformation (Sec. 108). Further programs are authorized to help Ukraine combat Russian propaganda and support independent media (Sec. 109). There's also a focus on weaning Europe off Russian nuclear energy influence, with a strategy and funding for U.S.-European nuclear energy cooperation (Sec. 111).

Keeping Tabs: How This All Gets Managed and Overseen

With great power comes great paperwork. This Act is packed with reporting requirements. Congress wants regular updates on everything from allied military contributions to Ukraine (Sec. 205) and U.S. intelligence cooperation (Sec. 206) to the progress of the insurance initiative (Sec. 106) and efforts to counter disinformation (Sec. 109). This means a lot of data will be flowing, intended to keep these extensive programs on track and accountable.

The President is given powers under the International Emergency Economic Powers Act (IEEPA) to implement many of these sanctions (Sec. 318), but there are exceptions, particularly for humanitarian aid and national security activities (Sec. 319). There's also a provision for the President to terminate sanctions if Russia demonstrably ends its aggression, but they must be snapped back if the aggression resumes (Sec. 320). Interestingly, Section 321 sets up a congressional review process. If the President wants to significantly alter or lift certain Russia sanctions, Congress gets a 30-day window to review and potentially block the action, ensuring a legislative check on executive power in this critical foreign policy area.