Library / Laws / 113th / hr / H.R. 5249 / Introduced in House
I
113th CONGRESS
2d Session
H. R. 5249
IN THE HOUSE OF REPRESENTATIVES
July 29, 2014
Mr. Moran (for himself, Mr. Kinzinger of Illinois, Ms. DeLauro, Ms. Kaptur, Mr. Larson of Connecticut, and Ms. Esty) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Oversight and Government Reform and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To re-impose sanctions on Russian arms exporter Rosoboronexport, and for other purposes.
1.
Short title
This Act may be cited as Rosoboronexport Embargo Act of 2014.
2.
Prohibition on direct or indirect use of funds to enter into contracts or agreements with
Rosoboronexport
(a)
Prohibition
The head of an executive agency may not enter into a contract, memorandum of understanding, or
cooperative agreement with, or make a grant to, or provide a loan or loan
agreement to Rosoboronexport or any subsidiary of Rosoboronexport
related
to the design, manufacture, or sale of military equipment.
(b)
Waiver
The President may waive the applicability of subsection (a) if the President, in consultation with
the Secretary of Defense, the Secretary of State, the Secretary of
Commerce and the Director of National Intelligence, certifies in writing
to the appropriate congressional committees that—
(1) to the best of the President's knowledge—
(A) Rosoboronexport has ceased the transfer of lethal military equipment to, and the maintenance of
existing lethal military equipment for, the Government of the Syrian Arab
Republic;
(B) the armed forces of the Russian Federation have withdrawn from Crimea (other than military forces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); and
(C) agents of the Russian Federation are not taking active measures to destabilize the control of the
Government of Ukraine over eastern Ukraine (including through active
support of efforts to unlawfully occupy facilities of the Government of
Ukraine); or
(2) the waiver is in the national security interests of the United States.
(c)
Reprogramming authority
(1)
In general
The President may reprogram funds appropriated or otherwise made available for Economic Support
Fund assistance or security assistance for the government of a country
that, on or after the date of the enactment of this Act, enters into a
contract, memorandum of understanding, or cooperative agreement with, or
makes a grant to, or provides a loan or loan agreement to
Rosoboronexport,
or any subsidiary of Rosoboronexport, in an amount up to or equal to
the
total amount of each such contract, memorandum of understanding,
cooperative agreement, loan, or loan agreement.
(2)
Notification
The President shall notify Congress not later than 15 days before reprogramming funds under
paragraph (1).
(d)
Definitions
In this section:
(1)
Appropriate congressional committees
The term appropriate congressional committees means—
(A) the Committee on Armed Services, the Committee on Foreign Relations, and the Committee on
Appropriations of the Senate; and
(B) the Committee on Armed Services, the Committee on Foreign Affairs, and the Committee on
Appropriations of the House of Representatives.
(2)
Executive agency
The term executive agency has the meaning given the term in section 133 of title 41, United States Code.
3.
Prohibition on assisting Rosoboronexport through the provision of financing
(a)
Prohibited activity defined
For purposes of this section, the term prohibited activity means the act of knowingly, materially, and directly contributing or attempting to contribute,
through the provision of financing, to the transfer or retransfer of goods
or technology to Rosoboronexport or any subsidiary of Rosoboronexport.
(b)
Prohibition
No United States person may engage in any prohibited activity to the extent that the United States
has jurisdiction to prohibit such activity by such United States person.
(c)
Presidential determination and order with respect to united states and foreign persons
If the President determines that a United States person has engaged in a prohibited activity
(without regard to whether subsection (b) applies), the President shall,
by order, impose the sanctions described in subsection (d) on such person.
(d)
Sanctions
The following sanctions shall be imposed pursuant to any order issued under subsection (c) with
respect to any United States person:
(1)
Ban on dealings in government finance
(A)
Designation as primary dealer
Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New
York may designate, or permit the continuation of any prior designation
of, the person as a primary dealer in United States Government debt
instruments.
(B)
Service as depositary
The person may not serve as a depositary for United States Government funds.
(2)
Restrictions on operations
The person may not, directly or indirectly—
(A) commence any line of business in the United States in which the person was not engaged as of the
date of the order; or
(B) conduct business from any location in the United States at which the person did not conduct
business as of the date of the order.
(e)
Termination of the sanctions
Any sanction imposed on any person pursuant to an order issued under subsection (c) shall—
(1) remain in effect for a period of not less than 12 months; and
(2) cease to apply after the end of such 12-month period only if the President determines, and
certifies in writing to the Congress, that—
(A) the person has ceased to engage in any prohibited activity; and
(B) the President has received reliable assurances from such person that the person will not, in the
future, engage in any prohibited activity.
(f)
Waiver
The President may waive the application of any sanction imposed on any person pursuant to an order
issued under subsection (c) if the President determines, and certifies in
writing to the Congress, that the continued imposition of the sanction
would have a serious adverse effect on the safety and soundness of the
domestic or international financial system or on domestic or international
payments systems.
(g)
Enforcement action
The Attorney General may bring an action in an appropriate district court of the United States for
injunctive and other appropriate relief with respect to—
(1) any violation of subsection (b); or
(2) any order issued pursuant to subsection (c).
(h)
Knowingly defined
(1)
In general
For purposes of this section, the term knowingly means the state of mind of a person with respect to conduct, a circumstance, or a result in which—
(A) such person is aware that such person is engaging in such conduct, that such circumstance exists,
or that such result is substantially certain to occur; or
(B) such person has a firm belief that such circumstance exists or that such result is substantially
certain to occur.
(2)
Knowledge of the existence of a particular circumstance
If knowledge of the existence of a particular circumstance is required for an offense, such
knowledge is established if a person is aware of a high probability of the
existence of such circumstance, unless the person actually believes that
such circumstance does not exist.
(i)
Scope of application
This section shall apply with respect to prohibited activities that occur on or after the date of
the enactment of this Act.
4.
Sanctions against United States persons that transfers or retransfers goods or technology, or
enters into contracts, or engages in trade, with Rosoboronexport
(a)
In general
If any United States person transfers or retransfers goods or technology, or enters into contracts,
or engages in trade, with Rosoboronexport, or any subsidiary of
Rosoboronexport, then the sanctions described in subsection (b) shall be
imposed.
(b)
Mandatory sanctions
The sanctions to be imposed pursuant to subsection (a) are as follows:
(1)
Procurement sanction
For a period of two years, the United States Government shall not procure, or enter into any
contract for the procurement of, any goods or services from the sanctioned
person.
(2)
Export sanction
For a period of two years, the United States Government shall not issue any license for any export
by or to the sanctioned person.
5.
Report on Rosoboronexport activities
(a)
Report required
Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in
consultation with the Secretary of State and the Director of National
Intelligence, shall submit to the appropriate congressional committees a
report setting forth the following:
(1) A list of the known transfers of lethal military equipment by Rosoboronexport to the Donetsk People’s Republic or other separatist groups in Ukraine.
(2) A list of the known transfers of lethal military equipment by Rosoboronexport to the Government of
the Syrian Arab Republic since March 15, 2011.
(3) A list of the known contracts, if any, that Rosoboronexport has signed with the Government of the
Syrian Arab Republic since March 15, 2011.
(4) A detailed list of all existing contracts, memorandums of understanding, cooperative agreements,
grants, loans, and loan guarantees between the Department of Defense and
Rosoboronexport, including a description of the transaction, signing
dates, values, and quantities.
(b)
Form
The report required by subsection (a) shall be submitted in unclassified form, but may include a
classified annex.
(c)
Appropriate congressional committees
In this section, the term appropriate congressional committees means—
(1) the Committee on Armed Services, the Committee on Foreign Relations, and the Committee on
Appropriations of the Senate; and
(2) the Committee on Armed Services, the Committee on Foreign Affairs, and the Committee on
Appropriations of the House of Representatives.
6.
United States person defined
In this Act, the term United States person means—
(1)
a natural person who is a citizen of the United States or who owes permanent allegiance to the
United States; and
(2)
a corporation or other legal entity which is organized under the laws of the United States, any
State or territory thereof, or the District of Columbia, if natural
persons described in paragraph (1) own, directly or indirectly, more than
50 percent of the outstanding capital stock or other beneficial interest
in such legal entity.