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                withdrawn from Crimea (other than military forces 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.
Rosoboronexport Embargo Act of 2014 - Prohibits the head of an executive agency from entering into a contract, memorandum of understanding, or cooperative agreement with, or make a grant to, or provide a loan or loan agreement to Rosoboronexport (the state intermediary agency for Russia's exports/imports of defense-related and dual use products, technologies, and services). Authorizes the President to: (1) waive such prohibition under specified circumstances, and (2) reprogram funds for a country that enters into any such arrangement with Rosoboronexport. Prohibits any U.S. person (individual or corporation) from assisting Rosoboronexport through the provision of financing. Imposes a ban on dealing in government finance and restrictions on U.S. business operations on a person that engages in such activity. Authorizes: (1) the President to waive the application of sanctions under specified circumstances, and (2) the Attorney General (DOJ) to bring an action in U.S. district court for injunctive and other relief with respect to such activities. Imposes procurement and export sanctions on any U.S. person that transfers goods or technology, enters into contracts, or engages in trade with Rosoboronexport. Directs the Secretary of Defense (DOD) to report to Congress regarding: (1) transfers of lethal military equipment by Rosoboronexport to separatist groups in Ukraine and to the government of Syria; and (2) contracts, memorandums of understanding, cooperative agreements, grants, and loans and loan guarantees between DOD and Rosoboronexport.
Rosoboronexport Embargo Act of 2014