[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5249 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5249
To re-impose sanctions on Russian arms exporter Rosoboronexport, and
for other purposes.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as ``Rosoboronexport Embargo Act of 2014''.
SEC. 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withdrawn from Crimea (other than military forces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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
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