U.S. Advances Legislation to Sanction Buyers of Russian Oil, Uranium and Natural Gas

The United States announced on July 10 that it would move forward with legislation to sanction buyers of Russian oil. The bill also targets purchases of Russian uranium and natural gas and would impose heavy tariffs on imports from any nation that buys those commodities. Russia earns 734 million euros a day from fossil fuel exports.

Its economy is valued at about $2.6 trillion, yet growth is projected at only 0.4 percent for 2026 after expanding 1 percent in 2025. The economy contracted in 2022 after earlier sanctions but recorded 4.1 percent growth in 2023. Defense officials informed President Vladimir Putin this year that additional billions would be required to continue the conflict in Ukraine.

The war is running at least $28 billion over budget, with further overspending of $54 billion projected for 2027 and 2028. Russia's 2026 defense budget exceeds $158.5 billion, compared with an annual average of $47 billion between 2019 and 2021. Stanford researcher David Henderson estimates the total cost of the conflict surpasses $2.5 trillion.

Crude oil prices fell below $73 per barrel in 2025 and Russia's oil and gas budget revenues halved in January 2026. Brent crude later rose more than 55 percent to near $120 per barrel after the Iran war began. Russian casualties are estimated above 1.4 million killed, wounded or missing, and more than 650,000 citizens have left the country.

Inflation reached a five-month high of 6 percent in June, with services at 10.6 percent, while food prices rose 18 percent from 2024 to 2026. The key interest rate stands at 14.25 percent after a 25-basis-point cut. Russia liquidated 71 percent of its gold reserves in January to finance the war.