‘Shadow Fleet’ Sanctions Bill Advances as US Senate Targets Kremlin’s War Chest

A new sanctions bill working its way through Congress aims to choke off the energy revenues Russia needs to fund its war by dismantling its maritime export network.

WASHINGTON, DC – The war may be bogged down in the mud of Eastern Ukraine, but the real battle for Russia’s checkbook is shifting to the high seas.

In a rare display of bipartisan muscle, the Senate Foreign Relations Committee (SFRC) moved Thursday to plug the leaks in the West’s energy blockade.

The SHADOW Fleet Sanctions Act, spearheaded by Chairman Jim Risch (R-ID) and Ranking Member Jeanne Shaheen (D-NH), cleared the Committee with a blunt message to the Kremlin: the era of the “ghost tanker” is coming to an end.

Targeting Russia’s energy machine

As Kyiv Post reported earlier this week, the legislation marks a shift from symbolic pressure to the systematic dismantling of the Kremlin’s export infrastructure.

By expanding US sanctions authorities, the bill directly targets the crown jewels of Russia’s energy future – the Yamal LNG and Arctic LNG 2 projects.

These sprawling Arctic installations are not merely commercial ventures; they are strategic pillars designed to cement Russia’s long-term dominance in the global gas market.

Beyond new projects, the Act seeks to finalize the isolation of Russia’s existing pipeline network.

It expands sanctions on the Nord Stream 1 and 2 pipelines, deliberately aligning US law with EU standards.

This “no-daylight” approach is intended to close the legal gray zones Moscow has exploited to maintain its energy leverage over Europe, presenting a unified Western front that leaves little room for back-door deals.

“We in the US Senate need to do all we can to bring an end to this conflict, including driving Vladimir Putin to the negotiating table, hamstringing the Russian economy and preventing further destruction in Ukraine,” Senators Risch and Shaheen said in a joint statement Thursday night.

“Whack-a-mole” no more

Speaking to Kyiv Post, several Senate aides said the legislation delivers the “sledgehammer” needed for systemic enforcement.

“The Treasury has been playing whack-a-mole with these ships,” emphasized one senior Republican aide, speaking on condition of anonymity due to ongoing negotiations. “This bill expands the legal authority to go after the entire ecosystem – the insurers, the re-flaggers, and the shell companies in places like the UAE and Turkey that keep these rust buckets afloat.”

A Democratic Senate aide echoed the sentiment: “We’re moving from tactical strikes to a strategic blockade. If you touch Russian oil above the cap, you lose access to the US financial system. Full stop.”

Western officials are tracking the bill’s progress with a mix of relief and urgency.

Across the Atlantic, the move is seen as a necessary escalation as Russia’s projected 2026 military budget climbs to record levels.

“We’ve seen a massive uptick in ship-to-ship transfers in the Mediterranean and the Baltic,” one Eastern European trade attaché told Kyiv Post, adding: “The SHADOW Act delivers the transatlantic alignment we’ve been asking for. It makes the ‘shadow’ world much smaller – and far more expensive – for Putin to navigate.”

The bill now heads to the Senate floor, where it must compete with a calendar crowded by domestic spending fights.

Still, the Risch-Shaheen alliance is a potent one.

With Senate Majority Leader John Thune and Minority Leader Chuck Schumer both signaling support for “crushing the Kremlin’s war chest,” the path to the President’s desk appears smoother than the choppy waters Russia’s shadow fleet currently occupies.

Putin has long wagered that Western attention would drift before his oil revenues ran dry.

The Senate just bet it can sink his tankers first.