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Title II — Deterring further Russian aggression in Europe

S. 2277 · 113th Congress · May 1, 2014 · Lineage

II Deterring further Russian aggression in Europe

Sec. 201 United States policy toward Russian aggression in Europe

It is the policy of the United States—
(1)
to use all appropriate elements of United States national power, in coordination with United States allies, to protect the independence, sovereignty, and territorial and economic integrity of Ukraine and other sovereign states in Europe and Eurasia from Russian aggression;
(2)
to actively work to deter further Russian aggression toward Ukraine and other sovereign states in Europe and Eurasia by imposing costs on the Russia Federation for its ongoing activities, as well as to make clear the consequences for further aggressive activities;
(3)
to work with United States partners in the European Union, NATO, and at the United Nations to ensure that all states, including the Russian Federation, recognize and not undermine, nor seek to undermine, the independence, sovereignty, or territorial or economic integrity of Ukraine and other sovereign states in Europe and Eurasia;
(4)
to condemn the continuing and long-standing pattern and practice by the Government of the Russian Federation of physical and economic aggression toward various countries in Europe and Eurasia;
(5)
to condemn the unjustified military intervention of the Russian Federation in the Crimea region of Ukraine and its concurrent occupation of that region, as well as any other form of political, economic, or military aggression toward Ukraine and other sovereign states in Europe and Eurasia, including the unnecessary and destabilizing presence of tens of thousands of Russian troops along the Ukrainian border;
(6)
to condemn economic extortion by the Government of the Russian Federation against the governments and people of Ukraine, Moldova, Lithuania, Georgia, and other countries in the region designed to obstruct closer ties between the European Union and the countries of the Eastern Partnership and to reduce the harmful consequences of such extortion;
(7)
to reaffirm the commitment of the United States to, and to remind Russia of its ongoing obligations under, and commitment to, the 1994 Budapest Memorandum on Security Assurances, which was executed jointly with the Russian Federation and the United Kingdom and explicitly secures the independence, sovereignty, and territorial integrity and borders of Ukraine;
(8)
to not recognize the unlawful referendum that took place in Crimea on March 16, 2014, or the Russian Federation’s illegal annexation of Crimea, including to not recognize any de jure or de facto sovereignty of the Russian Federation over Crimea, its airspace, or its territorial waters, and to call for the immediate reversal of the Russian Federation’s illegal annexation of Crimea;
(9)
to condemn the unjustified activities of agents of the Russian Federation in eastern Ukraine seeking to foment civil unrest and disturbance;
(10)
to support the people of Ukraine, Moldova, and Georgia in their desire to forge closer ties with Europe, including signing an Association Agreement with the European Union as a means to address endemic corruption, consolidate democracy, and achieve sustained prosperity;
(11)
to enhance and extend United States security cooperation with, security assistance to, and military exercises conducted with, states in Europe and Eurasia, including NATO member countries, NATO aspirants, and appropriate Eastern Partnership countries;
(12)
to reaffirm United States defense commitments to its treaty allies under Article V of the North Atlantic Treaty;
(13)
that the continued participation of the Russian Federation in the Group of Eight (G–8) states and its receipt of assistance from the World Bank Group should be conditioned on the Government of the Russian Federation respecting the territorial integrity of its neighbors and accepting and adhering to the norms and standards of free, democratic societies;
(14)
to support the people of Ukraine and Moldova in their efforts to conduct free and fair elections, including the Presidential elections in Ukraine in May 2014 and the parliamentary elections in Moldova in November 2014, as well as any subsequent elections;
(15)
to support the May 2012 NATO Chicago Summit Declaration’s statement that “[i]n accordance with Article 10 of the Washington Treaty, NATO’s door will remain open to all European democracies which share the values of our Alliance, which are willing and able to assume the responsibilities and obligations of membership, which are in a position to further the principles of the Treaty, and whose inclusion can contribute to security in the North Atlantic area,” particularly those cases where the aspirant is able to meet appropriate defense spending commitments and prepared to contribute to ongoing and future contingency operations; and
(16)
to explore ways for the United States Government to assist the countries of Europe and Eurasia to diversify their energy sources and achieve energy security, including through the development of a transatlantic energy strategy.

Sec. 202 Sanctions to address continuing aggression of the Russian Federation toward Ukraine

(a)
Imposition of sanctions—
(1)
Imposition of sanctions if Russian forces do not withdraw from Crimea— If the armed forces of the Russian Federation have not withdrawn from Crimea (other than military forces present on military bases subject to agreements in force between the Government of the Russian Federation and the Government of Ukraine) by not later than the date that is 7 days after the date of the enactment of this Act, the President shall impose the sanctions described in subsection (b) with respect to—
(A)
any official or agent of the Government of the Russian Federation, and any close associate or family member of an official of the Government of the Russian Federation, that the President determines is responsible for, participating in, complicit in, or responsible for ordering, controlling, or otherwise directing—
(i)
violations of the territorial integrity and sovereignty of Ukraine beginning in February 2014; or
(ii)
acts of significant corruption in the Russian Federation, including the expropriation of private or public assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the proceeds of corruption to foreign jurisdictions;
(B)
any individual that the President determines sponsored or provided financial, material, or technological support for, or goods or services in support of, the commission of acts described in subparagraph (A);
(C)
any individual or entity with respect to which sanctions were imposed before the date of the enactment of this Act pursuant to—
(i)
authority provided under any Executive order relating to violations of the territorial integrity and sovereignty of Ukraine beginning in February 2014; or
(ii)
authority provided under section 8 or 9 of the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (Public Law 113–95);
(D)
any entity owned or controlled by an entity described in subparagraph (C) that is owned or controlled by a citizen of the Russian Federation; and
(E)
any senior executive of an entity described in subparagraph (C) or (D) who is a citizen of the Russian Federation.
(2)
Imposition of sanctions if Russian forces do not withdraw from eastern border of Ukraine or do not cease destabilizing activities— If the Government of the Russian Federation has not withdrawn substantially all of the armed forces of the Russian Federation from the immediate vicinity of the eastern border of Ukraine by not later than the date that is 7 days after the date of the enactment of this Act, or agents of the Russian Federation do not cease taking active measures to destabilize the control of the Government of Ukraine over eastern Ukraine on or after that date (including through active support of efforts to unlawfully occupy facilities of the Government of Ukraine), the President shall impose the sanctions described in subsection (b) with respect to—
(A)
Sberbank;
(B)
VTB Bank;
(C)
Vnesheconombank;
(D)
Gazprombank;
(E)
Gazprom;
(F)
Novatek;
(G)
Rosneft;
(H)
Rosoboronexport;
(I)
any entity owned or controlled by an entity specified in any of subparagraphs (A) through (H) that is owned or controlled by a citizen of the Russian Federation; and
(J)
any senior executive of an entity specified in any of subparagraphs (A) through (I) who is a citizen of the Russian Federation.
(b)
Sanctions described—
(1)
In general— The sanctions described in this subsection are the following:
(A)
Asset blocking— The exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in all property and interests in property of a person determined by the President to be subject to subsection (a) if such property and interests in property are in the United States, come within the United States, or come within the possession or control of a United States person.
(B)
Exclusion from the United States and revocation of visa or other documentation— In the case of an alien determined by the President to be subject to subsection (a), denial of a visa to, and exclusion from the United States of, the alien, and revocation in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), of any visa or other documentation of the alien.
(2)
Penalties— A person that violates, attempts to violate, conspires to violate, or causes a violation of paragraph (1)(A) or any regulation, license, or order issued to carry out paragraph (1)(A) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.
(3)
Exception relating to the importation of goods—
(A)
In general— The requirement to block and prohibit all transactions in all property and interests in property under paragraph (1)(A) shall not include the authority to impose sanctions on the importation of goods.
(B)
Good defined— In this paragraph, the term good has the meaning given that term in section 16 of the Export Administration Act of 1979 (50 U.S.C. App. 2415) (as continued in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).
(4)
Exception to comply with United Nations Headquarters agreement— Sanctions under paragraph (1)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.
(c)
Waiver— The President may waive the application of sanctions under this section with respect to a person or a transaction if the President—
(1)
determines that such a waiver is in the national security interests of the United States; and
(2)
on or before the date on which the waiver takes effect, submits a notice of and a justification for the waiver to—
(A)
the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(B)
the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives.
(d)
Publication of list of sanctioned persons— Not later than 7 days after the imposition of sanctions pursuant to subsection (a), the President shall publish a list of the persons with respect to which sanctions were imposed pursuant to that subsection.
(e)
Regulatory authority— The President shall issue such regulations, licenses, and orders as are necessary to carry out this section.

Sec. 203 Additional sanctions in the event of increased aggression by the Russian Federation toward Ukraine or other countries

(a)
In general— If the armed forces of the Russian Federation expand further into, or the Government of the Russian Federation annexes, the sovereign territory of Ukraine or any other country in Europe or Eurasia after the date of the enactment of this Act without the consent of the legally recognized government of that country—
(1)
all of the sanctions described in subsection (b) shall be imposed the following business day by action of law with respect to—
(A)
any senior Russian official;
(B)
any entity owned or controlled by a senior Russian official; and
(C)
any close associate of a senior Russian official that provides significant support or resources to that senior Russian official;
(2)
the sanctions described in subparagraphs (A) and (B) of subsection (b)(1) shall be imposed the following business day by action of law on—
(A)
any entity—
(i)
organized under the laws of the Russian Federation or any jurisdiction within the Russian Federation;
(ii)
that is owned, in whole or in part, or controlled by—
(I)
the Government of the Russian Federation;
(II)
any person with respect to which sanctions are imposed under section 202;
(III)
any person with respect to which sanctions are imposed under paragraph (1); or
(IV)
any person with respect to which sanctions are imposed pursuant to an Executive order or any other provision of law in relation to violations of the territorial integrity and sovereignty of Ukraine beginning in February 2014; and
(iii)
that operates in the arms, defense, energy, financial services, metals, or mining sectors of the Russian Federation; and
(B)
any senior executive of an entity described in subparagraph (A) who is a citizen of the Russian Federation; and
(3)
the President shall exercise all powers granted to the President pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to prohibit any transaction by a domestic financial institution with a Russian financial institution or with respect to an account held by a Russian financial institution, other than routine interest and service fees.
(b)
Sanctions described—
(1)
In general— The sanctions described in this subsection are the following:
(A)
Asset blocking— The exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in all property and interests in property of a person determined by the President to be subject to subsection (a) if such property and interests in property are in the United States, come within the United States, or come within the possession or control of a United States person.
(B)
Exclusion from the United States and revocation of visa or other documentation— In the case of an alien determined by the President to be subject to subsection (a), denial of a visa to, and exclusion from the United States of, the alien, and revocation in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), of any visa or other documentation of the alien.
(C)
Sanctions with respect to foreign financial institutions— A prohibition on the opening, and a prohibition or the imposition of strict conditions on the maintaining, in the United States of a correspondent account or a payable-through account by a foreign financial institution that the President determines has knowingly conducted, on or after the date of the enactment of this Act, transactions with a person determined by the President to be subject to subsection (a).
(2)
Penalties— A person that violates, attempts to violate, conspires to violate, or causes a violation of subparagraph (A) or (C) of paragraph (1) or any regulation, license, or order issued to carry out either such subparagraph shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.
(3)
Exception relating to the importation of goods—
(A)
In general— The requirement to block and prohibit all transactions in all property and interests in property under paragraph (1)(A) shall not include the authority to impose sanctions on the importation of goods.
(B)
Good defined— In this paragraph, the term good has the meaning given that term in section 16 of the Export Administration Act of 1979 (50 U.S.C. App. 2415) (as continued in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).
(4)
Exception to comply with United Nations Headquarters agreement— Sanctions under paragraph (1)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.
(c)
Waiver— The President may waive the application of sanctions under subsection (b) with respect to a person or transaction if the President—
(1)
determines that such a waiver is in the vital national security interests of the United States; and
(2)
on or before the date on which the waiver takes effect, submits a notice of and a justification for the waiver to—
(A)
the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(B)
the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives.
(d)
Publication of list of sanctioned persons— Not later than 7 days after the imposition of sanctions pursuant to subsection (a), the President shall publish a list of the persons with respect to which sanctions were imposed pursuant to that subsection.
(e)
Regulatory authority— The President shall issue such regulations, licenses, and orders as are necessary to carry out this section.

Sec. 204 Limitation on Russian access to United States oil and gas technology

(a)
In general— If the Government of the Russian Federation has not withdrawn substantially all of the armed forces of the Russian Federation from the immediate vicinity of the eastern border of Ukraine by not later than the date that is 30 days after the date of the enactment of this Act, or agents of the Russian Federation do not cease taking active measures to destabilize the control of the Government of Ukraine over eastern Ukraine on or after that date (including through active support of efforts to unlawfully occupy facilities of the Government of Ukraine), the Secretary of Commerce, in consultation with the Secretary of State, shall revise the Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal Regulations, to strictly limit the transfer or export by any United States person of any advanced technology described in subsection (b) to any person in the Russian Federation or any citizen of the Russian Federation.
(b)
Advanced technology described— Advanced technology described in this subsection is advanced technology that—
(1)
is developed or controlled by a United States person and is not available from a person that is not a United States person; and
(2)
relates to the discovery, exploration, or extraction of onshore or offshore oil or natural gas deposits, including the discovery, exploration, or extraction of oil or natural gas deposits in shale.
(c)
Limited exception— The President may authorize a transaction for the transfer or export by a United States person of an advanced technology described in subsection (b) if the President determines that such authorization is in the national security interests of the United States.
(d)
Duration of regulations— The prohibition under subsection (a) shall remain in effect until such time as the President—
(1)
determines that such regulations are no longer warranted or appropriate; and
(2)
submits a notification of and justification for that determination to—
(A)
the Committee on Foreign Relations, the Committee on Appropriations, and the Committee on Energy and Natural Resources of the Senate; and
(B)
the Committee on Foreign Affairs, the Committee on Appropriations, and the Committee on Energy and Commerce of the House of Representatives.
(e)
Regulatory authority— The President shall issue such regulations, licenses, and orders as are necessary to carry out this section.

Sec. 205 Diplomatic measures with respect to the Russian Federation

(a)
Limiting defense sales and defense industrial cooperation— The Secretary of State, in coordination with the Secretary of Defense and the Secretary of Commerce, shall work with United States allies in Europe and around the world to strictly limit—
(1)
the sales of defense articles and services to the Government of the Russian Federation; and
(2)
the cooperation of the United States and its allies with the Government of the Russian Federation on matters related to the production of defense articles and services by Russian entities.
(b)
Duration of limits— The diplomatic measures required to be instituted pursuant to subsection (a) shall remain in effect until such time as the President determines in writing to the appropriate congressional committees that such diplomatic measures are no longer warranted or appropriate, including a justification for such determination.
(c)
Nuclear force reduction agreements—
(1)
Policy— It is the policy of the United States to not engage in further negotiations with the Russian Federation to reduce nuclear forces until the Russian Federation is in full compliance with all existing bilateral nuclear agreements with the United States, including the Treaty Between the United States of America and the Union of Soviet Socialist Republics on the Elimination of Their Intermediate-Range and Shorter-Range Missiles, signed at Washington December 8, 1987, and entered into force June 1, 1988.
(2)
Restriction— Notwithstanding any other provision of law, the President shall not enter into any agreement with the Government of the Russian Federation with respect to the reduction of nuclear forces except with the advice and consent of the Senate pursuant to article II, section 2, clause 2 of the United States Constitution.
(d)
Restriction on force posture adjustments pursuant to the new START Treaty— The President shall not take any steps to reduce the number of accountable deployed or non-deployed launchers under the Treaty between the United States of America and the Russian Federation on Measures for the Further Reduction and Limitation of Strategic Offensive Arms, signed at Prague April 8, 2010, and entered into force February 5, 2011 (commonly referred to as the “New START Treaty”), while the armed forces of the Russian Federation remain prepositioned to strike Ukraine or are threatening the territorial integrity or sovereignty of Ukraine or another European or Eurasian state.
(e)
Limitations on missile defense cooperation—
(1)
In general— The President shall not permit any sharing of sensitive United States missile defense information with the Government of the Russian Federation.
(2)
Spending limitation— No amounts may be obligated or expended to integrate into any United States or NATO common-funded missile defense system, including the NATO Air Defense Ground Environment, any standalone radar or missile defense system manufactured, sold, or exported by a Russian entity or by any person or entity currently sanctioned or designated under United States law for missile technology proliferation.
(f)
Report on Russian violations of international agreements— Not later than 90 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report detailing any and all violations of international or bilateral arms control or other agreements by the Russian Federation since the entry into force of the Intermediate-Range Nuclear Forces Treaty, including any suspected or confirmed violations of that treaty and the implications of the Russian suspension of the Treaty on Conventional Forces in Europe, as well as any steps taken by the President to hold the Russian Federation accountable for any such violations.
(g)
Limitations on Open Skies Treaty flights— The President shall not authorize any overflights of the territory of the United States or United States Government facilities or installations by aircraft of the Russian Federation pursuant to the Treaty on Open Skies, signed at Helsinki March 24, 1992, and entered into force January 1, 2002, that employ any surveillance devices beyond those employed on such aircraft prior to January 1, 2014.
(h)
Report on alternatives to Russian rocket engines— Not later than 180 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report on alternatives to the use of RD–180 rocket engines produced in the Russian Federation for national security launches and a recommendation on whether any domestic alternatives to the use of such engines should be pursued in the next two fiscal years.
(i)
Additional consular activities— The Secretary of State shall prioritize and undertake efforts to identify and provide access to appropriate consular resources, including prioritized access to applications for refugee and other appropriate immigration or travel status to the United States, for journalists and political and civil society activists and dissidents in the Russian Federation.
(j)
Report on significant corruption in the Russian Federation and the effects of such corruption—
(1)
In general— Not later than 90 days after the date of the enactment of this Act, and every 90 days thereafter, the Secretary of State, in coordination with the Secretary of the Treasury, shall submit to the appropriate congressional committees a report on significant corruption in the Russian Federation and the extent to which such corruption undermines political and economic development in the independent countries of the former Soviet Union.
(2)
Required elements— The report required by paragraph (1) may contain a classified annex, but shall include in unclassified form the following elements:
(A)
A detailed description of corruption among senior officials of the Government of the Russian Federation and the connections between such corruption and business leaders in the Russian Federation.
(B)
A detailed description of how the Government of the Russian Federation uses corruption to sustain the power of specific individuals in government and business.
(C)
An estimate in United States dollars of the personal net wealth of any senior Russian official, or a family member or close associate of such official, who is responsible for, or complicit in, or responsible for ordering, controlling, or otherwise directing, acts of significant corruption in Russia, including the expropriation of private or state assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the proceeds of corruption to foreign jurisdictions.
(D)
An estimate in United States dollars of the amount of money derived from acts of significant corruption in the Russian Federation that has been invested, laundered, or otherwise transferred into the sovereign jurisdiction of each of the independent countries of the former Soviet Union.
(E)
Detailed descriptions of specific instances of significant corruption in the Russian Federation.
(F)
A detailed description of how the Government of the Russian Federation uses corruption in other states in order to create and maintain a dependence on the Russian Federation and on specific Russian government officials, entities, and business leaders.
(G)
A detailed description of the extent to which the flow of money described in subparagraph (D) contributes to public or private corruption, non-transparent or unaccountable government or private sector decisionmaking, or the weakening, subversion, or undermining of sovereignty, democratic institutions, rule of law, or economic or financial systems in each of the independent countries of the former Soviet Union.
(H)
A detailed description of the political and financial networks and other mechanisms through which the money described in subparagraph (D) contributes to the malign effects in the independent countries of the former Soviet Union as described in subparagraph (G).
(3)
Interagency working group— The Secretary of State, in coordination with the Secretary of the Treasury, shall convene an interagency working group, including representatives of the United States intelligence community, to coordinate the production of the report required by this subsection, prioritize the collection and analysis of intelligence and financial information required for such report, and support efforts to address the effects of corruption in the Russian Federation on Russian citizens, the United States, and United States allies and partners in Europe and Eurasia, including increasing public awareness of such issues in the Russian Federation and other countries.
(4)
Authorization of appropriations— There is authorized to be appropriated to the Secretary of State for the Bureau of Democracy, Human Rights, and Labor $2,500,000 for each of fiscal years 2015 through 2017 to support the efforts of the interagency working group described in paragraph (3), including the hiring of staff as appropriate, and to produce the report required by paragraph (1).
(k)
Report on russian economy— Not later than 90 days after the date of the enactment of this Act, and every 90 days thereafter, the Assistant Secretary of State for Intelligence and Research shall submit to the appropriate congressional committees and make publically available a report on the state of economic activity and government-owned enterprises in the Russian Federation. The report shall analyze relevant economic indicators, including gross domestic product (GDP) and the amount of GDP derived from government spending, money supply, inflation, unemployment, capital flows, and foreign direct investment.

Sec. 206 Support for Russian democracy and civil society organizations

(a)
In general— The Secretary of State shall increase efforts, directly or through nongovernmental organizations, to—
(1)
improve democratic governance, transparency, accountability, rule of law, and anti-corruption efforts in the Russian Federation;
(2)
strengthen democratic institutions and political and civil society organizations in the Russian Federation;
(3)
expand uncensored Internet access in Russia; and
(4)
expand free and unfettered access to independent media of all kinds in Russia, including through increasing United States Government-supported broadcasting activities, and to assist with the protection of journalists and civil society activists who have been targeted for free speech activities.
(b)
Authorization of appropriations— There is authorized to be appropriated to the Secretary of State $10,000,000 for each of fiscal years 2015 through 2017 to carry out the activities set forth in subsection (a).
(c)
Strategy requirement— Not later than 60 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a strategy to carry out the activities set forth in subsection (a).
(d)
Notification requirement—
(1)
In general— Funds appropriated or otherwise made available pursuant to subsection (b) may not be obligated until 15 days after the date on which the President has provided notice of intent to obligate such funds to the appropriate congressional committees.
(2)
Waiver— The President may waive the notification requirement under paragraph (1) if the President determines that failure to do so would pose a substantial risk to human health or welfare, in which case notification shall be provided as early as practicable, but in no event later than three days after taking the action to which such notification requirement was applicable in the context of the circumstances necessitating such waiver.