Senate approval of the bill comes more than five months after US intelligence agencies said Moscow meddled in the 2016 election.
The bill, imposing another round of sanctions on Russian Federation, was passed in a 97-2 vote on Wednesday and is yet to be considered by the House of Representatives.
European allies, Germany and Austria, expressed concern for the impact the Russia sanctions could have on Russian natural gas supplies with Europe.
The U.S. Senate has overwhelmingly approved legislation that included tougher new sanctions against Russian Federation and Iran, making it more hard for President Donald Trump to ease existing restrictions without congressional approval.
The bill was now heading toward the House for passage before reaching U.S. President Donald Trump's desk.
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The White House stressed that it is committed to the existing Russian sanctions regime that it believes is best suited to address U.S. concerns and would keep sanctions in place until Russia resolves the situation in Ukraine. "We believe the existing executive branch sanctions regime is the best tool for compelling Russian Federation to fulfill its commitments", Sanders told reporters, adding that the bill had yet to move through the house.
The measure looks to punish Russian President Vladimir Putin for his country's alleged meddling in the 2016 US presidential election and to make Iran pay a price for its "continued support of terrorism". The White House hasn't weighed in on the legislation but says it's "committed" to the existing Russian sanctions. Rand Paul, R-Kentucky, the second member who voted against the sanctions amendment, said that sanctions against Iran or Russian Federation are like "tweaking their nose" and not effective.
Senators are optimistic Trump won't veto them.
Secretary of State Rex Tillerson questioned the legislation on Wednesday, urging Congress to ensure that any sanctions package "allows the president to have the flexibility to adjust sanctions to meet the needs of what is always an evolving diplomatic situation".
The larger bill is expected to pass the Senate by the end of the week, then be passed by the House and signed by Trump. They blocked United States companies such as Exxon Mobil, where Tillerson was chairman, from investing in such projects. Sens. Bernie Sanders of Vermont and Rand Paul of Kentucky were the only votes against the bill.