Democratic Senator Chris Van Hollen and Republican Senator Pat Toomey announced a framework for legislation to impose the secondary sanctions, which would target financial institutions involved in trade finance, insurance, reinsurance and brokerage of Russia oil and petroleum products sold at prices exceeding the cap.

Both senators are members of the Senate Banking Committee, which oversees sanctions policy.

The Biden administration has been reluctant to impose secondary sanctions, concerned they could complicate relations with importers of Russia oil like China and India.

Elizabeth Rosenberg, Treasury Assistant Secretary for Terrorist Financing and Financial Crimes, told the hearing the price cap was a powerful tool to hit Russia and stabilize energy prices.

Rosenberg indicated that Treasury will in coming weeks release guidelines to address the issue.