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Congress' deal on Russia sanctions features changes sought by Big Oil and key Texas Republican

Sessions said the revised approach — set for a vote in the House on Tuesday — would help prevent the Russians from being 'able to weaponize these sanctions against American businesses.'

WASHINGTON — Texas Rep. Pete Sessions went to bat for Big Oil. And won.

The Dallas Republican led the charge in raising concerns that portions of a bill to toughen sanctions on Russia would harm energy companies like Irving-based Exxon Mobil by preventing them from pursuing some major projects across the globe.

And a new bipartisan deal to advance the sanctions now features changes to address those worries.

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While an earlier version passed by the Senate would've banned U.S. businesses from working on international oil projects that involved any sanctioned Russian partners, the new one would bar U.S. companies only from projects that include at least a 33 percent stake by those Russians.

Sessions said the revised approach — set for a vote in the House on Tuesday — would help prevent the Russians from being "able to weaponize these sanctions against American businesses."

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"The legislation that we will vote on later this week responsibly revises the Senate package by imposing crippling sanctions ... without harming American job creators," said Sessions, who leads the influential House Rules Committee.

Rep. Pete Sessions said the tweaked Russia sanctions would impose "crippling sanctions ......
Rep. Pete Sessions said the tweaked Russia sanctions would impose "crippling sanctions ... without harming American job creators." (Jae S. Lee/Staff Photographer)

The sanctions have taken on deep significance amid continued controversy surrounding Russia's meddling in the 2016 election.

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Multiple investigations are looking into whether President Donald Trump's campaign colluded with the Russians to influence the election. And while Trump has denied any wrongdoing, the president has nevertheless stoked the drama on his Twitter feed and through other outlets.

Given that backdrop, Congress has flashed rare bipartisanship in pursuing new ways to punish Russia.

The Senate last month voted 98-2 in favor of a sanctions bill, with Texas Sens. John Cornyn and Ted Cruz supporting it. And despite reservations from the White House that the legislation would erode executive power, the effort seemed to be a sure thing in the House.

President Donald Trump's ties to Russia have loomed over Congress' efforts to impose tougher...
President Donald Trump's ties to Russia have loomed over Congress' efforts to impose tougher sanctions on the country. (Stephen Crowley/The New York Times)

But push-back from the energy sector and some other industries proved to be a key sticking point.

The worries were multifaceted. And the debate was further complicated last week, when the U.S. Treasury Department fined Exxon $2 million for violating existing U.S. sanctions on Russia while Secretary of State Rex Tillerson was the company's chief executive.

But one big concern was that Russian officials could turn the tables on the sanctions by pursuing small pieces of foreign oil projects just to prevent U.S. competitors from getting in on the action.

Sessions, who counts the oil and gas industry as a major campaign donor, emerged as one of the first voices in Congress to draw attention to the issue. He said he was looking out for the "energy companies that dominate the district that I represent."

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"It automatically gives the Russians not only a leg up, but denies the United States the ability to compete in the free market," he said earlier this month.

The debate over the Russia sanctions bill was complicated by the fact the U.S. Treasury...
The debate over the Russia sanctions bill was complicated by the fact the U.S. Treasury Department fined Exxon $2 million for violating existing U.S. sanctions on Russia while Secretary of State Rex Tillerson was the company's chief executive.(Jacquelyn Martin / The Associated Press)

The snag looked to be serious, as Democrats accused the GOP of stalling and Sessions accused Democrats of trying to "politicize the issue." But late last week, House leaders announced changes to the energy components as part of a new sanctions package on Russia, Iran and North Korea.

House Majority Leader Rep. Kevin McCarthy touted his chamber's efforts to strengthen the bill. House Minority Whip Rep. Steny Hoyer, meanwhile, said the bill's changes will "ensure effective and unified implementation among partners and make provisions more workable."

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The oil and gas industry didn't get everything it wanted, as officials were hoping for the Russian ownership threshold to be even higher before restrictions kicked in. And some projects being pursued by Exxon and others could remain in jeopardy, The Washington Post reported.

But the American Petroleum Institute nevertheless praised the tweaks.

"The amended bill more appropriately focuses sanctions on the intended target — Russia and its energy firms — rather than inadvertently benefiting Russia at the expense of U.S. companies," said Marty Durbin, API's executive vice president.