Senate Resolution Backs EU’s Russian Energy Cut, Warns Partners on Secondary Sanctions Risk

This resolution, coming from the Senate, isn’t a law that changes anything directly for you, but it’s a big, loud statement about U.S. foreign policy and energy security. Essentially, the Senate is giving a firm nod of approval to the European Union’s efforts to stop buying Russian oil and gas, a policy known as REPowerEU. It also sends a clear warning to any country or company still dealing with major Russian energy firms like Rosneft and Lukoil: get out now, or risk getting hit with U.S. secondary sanctions.

The Geopolitical Breakup: Europe and Russian Gas

Since the 2022 invasion of Ukraine, Europe has been trying to break up with Russian energy, which was funding Russia’s war machine. The resolution notes that the EU has been pretty successful, cutting dependence on Russian fossil fuels by about 90 percent. That’s a massive shift in a short time. The goal, set by the EU's REPowerEU plan, is to be totally done with Russian gas by the end of 2027. The Senate welcomes this action, recognizing it as a key move to starve Vladimir Putin of revenue.

The Secondary Sanctions Warning: Who Needs to Pay Attention?

This is where the rubber meets the road for companies outside the U.S. and Europe. The resolution explicitly welcomes the recent decisions by the U.S. and the EU to sanction major Russian energy companies, specifically naming Rosneft and Lukoil. The key takeaway for anyone in the business world is the call for “United States allies and partners to end all contracts connected with both Rosneft and Lukoil to prevent potential exposure to secondary sanctions.”

Think of secondary sanctions like a financial contagion. If you’re a global shipping company, a refinery, or a trading house—maybe based in Asia or the Middle East—and you continue to do business with Rosneft or Lukoil, the U.S. can potentially cut you off from the U.S. financial system. For most large international businesses, losing access to the dollar and U.S. banks is a business death sentence. This resolution is the Senate making sure everyone got the memo: the risk is real, and the U.S. is serious about enforcing these measures.

The Hungary Problem

While the resolution praises most of Europe, it singles out Hungary for concern. The Senate notes that Hungary has not only failed to reduce its dependence but has actually increased it by an estimated 30 percent since the invasion, reportedly funneling about $6.7 billion to Russia for crude oil alone. The resolution calls out Hungary and any other slow movers to “fully follow the timeline established in the REPowerEU initiative.” This highlights a growing political fissure within the EU itself, where the costs of energy independence are being felt unevenly, creating diplomatic pressure points. For the average European, this means that while energy security is improving overall, internal political disagreements could slow down the final push toward full independence.

The Pipelines That Won’t Die

Finally, the Senate reaffirms its long-standing, bipartisan opposition to the controversial Nord Stream I and II pipelines. These pipelines, designed to bring Russian gas directly to Germany under the Baltic Sea, have been a major geopolitical flashpoint for years. The resolution makes it clear that the Senate opposes any effort to revive these projects. This is less about immediate impact and more about long-term strategic clarity, ensuring that even if the war ends, Europe doesn't revert to relying on this infrastructure.