II 

115TH CONGRESS 

1ST SESSION S. 94 

To impose sanctions in response to cyber intrusions by the Government 

of the Russian Federation and other aggressive activities of the Russian 

Federation, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 11, 2017 

Mr. CARDIN (for himself, Mr. MCCAIN, Mr. MENENDEZ, Mr. GRAHAM, Mrs. 

SHAHEEN, Mr. RUBIO, Ms. KLOBUCHAR, Mr. SASSE, Mr. DURBIN, and 

Mr. PORTMAN) introduced the following bill; which was read twice and 

referred to the Committee on Foreign Relations 

A BILL 

To impose sanctions in response to cyber intrusions by the 

Government of the Russian Federation and other aggressive activities of the Russian Federation, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Counteracting Russian Hostilities Act of 2017’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—COUNTERING RUSSIAN CYBER INTRUSIONS 

Sec. 101. Short title. 

Sec. 102. Findings. 

Sec. 103. Imposition of sanctions with respect to persons engaging in significant activities undermining cybersecurity and democratic institutions. 

Sec. 104. Codification of Executive Order 13694. 

Sec. 105. Imposition of sanctions with respect to persons engaging in transactions with the intelligence or defense sectors of the Government of the Russian Federation. 

Sec. 106. Exemptions, waivers, and rulemaking. 

Sec. 107. Public service campaign relating to cybersecurity and combating 

disinformation. 

Sec. 108. Termination. 

Sec. 109. Rule of construction. 

TITLE II—COUNTERING RUSSIAN AGGRESSION 

Sec. 201. Short title. 

Sec. 202. Findings. 

Sec. 203. Sense of Congress. 

Sec. 204. Prohibitions against United States recognition of the Russian Federation’s annexation of Crimea and occupation of South Ossetia 

and Abkhazia. 

Sec. 205. Statements of policy with respect to Ukraine. 

Sec. 206. Codification of Executive orders imposing sanctions in relation to the 

situation in Ukraine. 

Sec. 207. Sanctions with respect to the development and production of petroleum and natural gas resources in the Russian Federation. 

Sec. 208. Sanctions with respect to the development of pipelines in the Russian 

Federation. 

Sec. 209. Sanctions with respect to the development of civil nuclear projects by 

the Russian Federation. 

Sec. 210. Sanctions with respect to purchase, subscription to, or facilitation of 

the issuance of sovereign debt of the Russian Federation. 

Sec. 211. Sanctions with respect to investment in or facilitation of privatization 

of state-owned assets by the Russian Federation. 

Sec. 212. Prohibiting certain transactions in areas controlled by the Russian 

Federation. 

Sec. 213. Sanctions described. 

Sec. 214. Exemptions, waivers, and rulemaking. 

Sec. 215. Inclusion of all funds in records of certain transactions. 

Sec. 216. Termination. 

Sec. 217. Rule of construction. 

TITLE III—EUROPE AND EURASIA DEMOCRACY AND ANTICORRUPTION INITIATIVE 

Sec. 301. Short title. 

Sec. 302. Findings. 

Sec. 303. Sense of Congress. 


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Sec. 304. Report on advertising on media outlets controlled and funded by the 

Government of the Russian Federation. 

Sec. 305. Europe and Eurasia Democracy and Anti-Corruption Fund. 

Sec. 306. Establishment of a Russia unit in the Financial Crimes Enforcement 

Network. 

Sec. 307. Termination. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) APPROPRIATE CONGRESSIONAL COMMIT4 TEES.—The term ‘‘appropriate congressional com5 mittees’’ means— 

6 (A) the Committee on Foreign Relations, 

7 the Committee on Banking, Housing, and 

8 Urban Affairs, the Committee on Armed Serv9 ices, the Committee on Homeland Security and 

10 Governmental Affairs, the Committee on Appro11 priations, and the Select Committee on Intel12 ligence of the Senate; and 

13 (B) the Committee on Foreign Affairs, the 

14 Committee on Financial Services, the Com15 mittee on Armed Services, the Committee on 

16 Homeland Security, the Committee on Appro17 priations, and the Permanent Select Committee 

18 on Intelligence of the House of Representatives. 

19 (2) GOOD.—The term ‘‘good’’ has the meaning 

20 given that term in section 16 of the Export Adminis21 tration Act of 1979 (50 U.S.C. 4618) (as continued 


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1 in effect pursuant to the International Emergency 

2 Economic Powers Act (50 U.S.C. 1701 et seq.)). 

3 (3) INTERNATIONAL FINANCIAL INSTITU4 TION.—The term ‘‘international financial institu5 tion’’ has the meaning given that term in section 

6 1701(c) of the International Financial Institutions 

7 Act (22 U.S.C. 262r(c)). 

8 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 

9 respect to conduct, a circumstance, or a result, 

10 means that a person has actual knowledge, or should 

11 have known, of the conduct, the circumstance, or the 

12 result. 

13 (5) PERSON.—The term ‘‘person’’ means an in14 dividual or entity. 

15 (6) UNITED STATES PERSON.—The term 

16 ‘‘United States person’’ means— 

17 (A) a United States citizen or an alien law18 fully admitted for permanent residence to the 

19 United States; or 

20 (B) an entity organized under the laws of 

21 the United States or of any jurisdiction within 

22 the United States, including a foreign branch of 

23 such an entity. 


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1 TITLE I—COUNTERING RUSSIAN 

2 CYBER INTRUSIONS 

3 SEC. 101. SHORT TITLE. 

4 This title may be cited as the ‘‘Russian Cyber Intru5 sions Sanctions Act of 2017’’. 

6 SEC. 102. FINDINGS. 

7 Congress makes the following findings: 

8 (1) On October 7, 2016, the Department of 

9 Homeland Security and the Office of the Director of 

10 National Intelligence stated, the ‘‘U.S. Intelligence 

11 Community (USIC) is confident that the Russian 

12 government directed the recent compromises of e13 mails from U.S. persons and institutions, including 

14 from U.S. political organizations. The recent disclo15 sures of alleged hacked e-mails on sites like 

16 DCLeaks.com and WikiLeaks and by the Guccifer 

17 2.0 online persona are consistent with the methods 

18 and motivations of Russian-directed efforts.’’. The 

19 statement concluded that ‘‘only Russia’s senior-most 

20 officials could have authorized these activities’’. 

21 (2) On April 1, 2015, President Barack Obama 

22 issued Executive Order 13694 (80 Fed. Reg. 18077; 

23 relating to blocking the property of certain persons 

24 engaging in significant malicious cyber-enabled ac25 tivities), which authorizes the Secretary of the 


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1 Treasury, in consultation with the Attorney General 

2 and the Secretary of State, to impose sanctions on 

3 persons determined to be engaged in malicious 

4 cyber-hacking. 

5 (3) On July 26, 2016, President Obama ap6 proved a Presidential Policy Directive on United 

7 States Cyber Incident Coordination, which states, 

8 ‘‘certain cyber incidents that have significant im9 pacts on an entity, our national security, or the 

10 broader economy require a unique approach to re11 sponse efforts’’. 

12 (4) On December 29, 2016, President Obama 

13 issued an annex to Executive Order 13694, which 

14 authorized sanctions on the following entities and in15 dividuals: 

16 (A) The Main Intelligence Directorate 

17 (also known as Glavnoe Razvedyvatel’noe 

18 Upravlenie or the GRU) in Moscow, Russian 

19 Federation. 

20 (B) The Federal Security Service (also 

21 known as Federalnaya Sluzhba Bezopasnosti or 

22 the FSB) in Moscow, Russian Federation. 

23 (C) The Special Technology Center (also 

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1 ter St. Petersburg) in St. Petersburg, Russian 

2 Federation. 

3 (D) Zorsecurity (also known as Esage 

4 Lab) in Moscow, Russian Federation. 

5 (E) The autonomous noncommercial orga6 nization known as the Professional Association 

7 of Designers of Data Processing Systems (also 

8 known as ANO PO KSI) in Moscow, Russian 

9 Federation. 

10 (F) Igor Valentinovich Korobov. 

11 (G) Sergey Aleksandrovich Gizunov. 

12 (H) Igor Olegovich Kostyukov. 

13 (I) Vladimir Stepanovich Alexseyev. 

14 (5) On January 6, 2017, an assessment of the 

15 United States intelligence community entitled, ‘‘As16 sessing Russian Activities and Intentions in Recent 

17 U.S. Elections’’ stated, ‘‘Russian President Vladimir 

18 Putin ordered an influence campaign in 2016 aimed 

19 at the United States presidential election. Russia’s 

20 goals were to undermine public faith in the United 

21 States democratic process, denigrate Secretary Clin22 ton, and harm her electability and potential presi23 dency.’’. The intelligence community ‘‘did not make 

24 an assessment of the impact that Russian activities 

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1 sessment warns that ‘‘Moscow will apply lessons 

2 learned from its Putin-ordered campaign aimed at 

3 the U.S. Presidential election to future influence ef4 forts worldwide, including against U.S. allies and 

5 their election processes’’. 

6 SEC. 103. IMPOSITION OF SANCTIONS WITH RESPECT TO 

7 PERSONS ENGAGING IN SIGNIFICANT ACTIVI8 TIES UNDERMINING CYBERSECURITY AND 

9 DEMOCRATIC INSTITUTIONS. 

10 (a) IN GENERAL.—The President shall impose the 

11 sanctions described in subsection (b) with respect to any 

12 person that the President determines— 

13 (1) knowingly engages, on behalf of the Govern14 ment of the Russian Federation, in significant ac15 tivities undermining cybersecurity, through the use 

16 of computer networks or systems against persons or 

17 governments, that— 

18 (A) have a detrimental effect on public or 

19 private infrastructure of the United States or 

20 an ally of the United States; or 

21 (B) result in the compromise of democratic 

22 institutions of the United States or an ally of 

23 the United States; 

24 (2) materially assists, sponsors, or provides fi25 nancial, material, or technological support for, or 


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1 goods or services in support of, an activity described 

2 in paragraph (1); or 

3 (3) is owned or controlled by, or acts or pur4 ports to act for or on behalf of, directly or indirectly, 

5 a person described in paragraph (1). 

6 (b) SANCTIONS DESCRIBED.—The sanctions de7 scribed in this subsection are the following: 

8 (1) ASSET BLOCKING.—The exercise of all pow9 ers granted to the President by the International 

10 Emergency Economic Powers Act (50 U.S.C. 1701 

11 et seq.) to the extent necessary to block and prohibit 

12 all transactions in all property and interests in prop13 erty of a person determined by the President to be 

14 subject to subsection (a) if such property and inter15 ests in property are in the United States, come with16 in the United States, or are or come within the pos17 session or control of a United States person. 

18 (2) EXCLUSION FROM THE UNITED STATES

19 AND REVOCATION OF VISA OR OTHER DOCUMENTA20 TION.—In the case of an alien determined by the 

21 President to be subject to subsection (a), denial of 

22 a visa to, and exclusion from the United States of, 

23 the alien, and revocation in accordance with section 

24 221(i) of the Immigration and Nationality Act (8 


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1 U.S.C. 1201(i)), of any visa or other documentation 

2 of the alien. 

3 (c) REQUESTS BY CHAIRPERSON AND RANKING

4 MEMBER OF APPROPRIATE CONGRESSIONAL COMMIT5 TEES.— 

6 (1) IN GENERAL.—Not later than 120 days 

7 after receiving a written request from the chair8 person and ranking member of one of the appro9 priate congressional committees with respect to 

10 whether a person meets the criteria for the imposi11 tion of sanctions under subsection (a), the President 

12 shall submit a response to the chairperson and rank13 ing member of the committee that made the request 

14 with respect to whether or not the person meets 

15 such criteria. 

16 (2) NOTIFICATION OF TERMINATION OF SANC17 TIONS.—If the President terminates sanctions im18 posed under subsection (a) with respect to a person 

19 that was the subject of a request under paragraph 

20 (1), the President shall notify the chairperson and 

21 ranking member of the appropriate congressional 

22 committee that made the request and provide to the 

23 chairperson and ranking member any information 

24 that contributed to the decision to terminate such 

25 sanctions. 


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1 (3) FORM.—The President may submit a re2 sponse required by paragraph (1) or a notification 

3 required by paragraph (3) in classified form if the 

4 President determines that it is necessary for the na5 tional security interests of the United States to do 

6 so. 

7 (d) IMPLEMENTATION; PENALTIES.— 

8 (1) IMPLEMENTATION.—The President may ex9 ercise all authorities provided to the President under 

10 sections 203 and 205 of the International Emer11 gency Economic Powers Act (50 U.S.C. 1702 and 

12 1704) to carry out subsection (b)(1). 

13 (2) PENALTIES.—A person that violates, at14 tempts to violate, conspires to violate, or causes a 

15 violation of subsection (b)(1) or any regulation, li16 cense, or order issued to carry out subsection (b)(1) 

17 shall be subject to the penalties set forth in sub18 sections (b) and (c) of section 206 of the Inter19 national Emergency Economic Powers Act (50 

20 U.S.C. 1705) to the same extent as a person that 

21 commits an unlawful act described in subsection (a) 

22 of that section. 

23 SEC. 104. CODIFICATION OF EXECUTIVE ORDER 13694. 

24 Executive Order 13694 (80 Fed. Reg. 18077; relat25 ing to blocking the property of certain persons engaging 


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1 in significant malicious cyber-enabled activities), as in ef2 fect on the day before the date of the enactment of this 

3 Act, and any sanctions imposed pursuant to that Execu4 tive order, shall remain in effect until the date specified 

5 in section 108. 

6 SEC. 105. IMPOSITION OF SANCTIONS WITH RESPECT TO 

7 PERSONS ENGAGING IN TRANSACTIONS WITH 

8 THE INTELLIGENCE OR DEFENSE SECTORS 

9 OF THE GOVERNMENT OF THE RUSSIAN FED10 ERATION. 

11 (a) LIST REQUIRED.—Not later than 180 days after 

12 the date of the enactment of this Act, and every 180 days 

13 thereafter, the President shall submit to Congress a list 

14 of each person that knowingly, on or after such date of 

15 enactment, engages in a significant transaction with a per16 son that is part of, or operates for or on behalf of, the 

17 defense or intelligence sectors of the Government of the 

18 Russian Federation, including the Main Intelligence Agen19 cy of the General Staff of the Armed Forces of the Rus20 sian Federation or the Federal Security Service of the 

21 Russian Federation. 

22 (b) IMPOSITION OF SANCTIONS.—The President shall 

23 impose 5 or more of the sanctions described in subsection 

24 (c) with respect to a person on the list required by sub25 section (a). 


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1 (c) SANCTIONS DESCRIBED.—The sanctions to be 

2 imposed with respect to a person subject to subsection (b) 

3 are the following: 

4 (1) EXPORT-IMPORT BANK ASSISTANCE FOR

5 EXPORTS TO SANCTIONED PERSONS.—The President 

6 may direct the Export-Import Bank of the United 

7 States not to give approval to the issuance of any 

8 guarantee, insurance, extension of credit, or partici9 pation in the extension of credit in connection with 

10 the export of any goods or services to the person 

11 subject to subsection (b). 

12 (2) EXPORT SANCTION.—The President may 

13 order the United States Government not to issue 

14 any specific license and not to grant any other spe15 cific permission or authority to export any goods or 

16 technology to the person subject to subsection (b) 

17 under— 

18 (A) the Export Administration Act of 1979 

19 (50 U.S.C. 4601 et seq.) (as continued in effect 

20 pursuant to the International Emergency Eco21 nomic Powers Act (50 U.S.C. 1701 et seq.)); 

22 (B) the Arms Export Control Act (22 

23 U.S.C. 2751 et seq.); 

24 (C) the Atomic Energy Act of 1954 (42 

25 U.S.C. 2011 et seq.); or 


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1 (D) any other statute that requires the 

2 prior review and approval of the United States 

3 Government as a condition for the export or re4 export of goods or services. 

5 (3) LOANS FROM UNITED STATES FINANCIAL

6 INSTITUTIONS.—The President may prohibit any 

7 United States financial institution from making 

8 loans or providing credits to the person subject to 

9 subsection (b) totaling more than $10,000,000 in 

10 any 12-month period unless the person is engaged in 

11 activities to relieve human suffering and the loans or 

12 credits are provided for such activities. 

13 (4) LOANS FROM INTERNATIONAL FINANCIAL

14 INSTITUTIONS.—The President may direct the 

15 United States executive director to each inter16 national financial institution to use the voice and 

17 vote of the United States to oppose any loan from 

18 the international financial institution that would 

19 benefit the person subject to subsection (b). 

20 (5) PROHIBITIONS ON FINANCIAL INSTITU21 TIONS.—The following prohibitions may be imposed 

22 against the person subject to subsection (b) if that 

23 person is a financial institution: 

24 (A) PROHIBITION ON DESIGNATION AS

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1 ernors of the Federal Reserve System nor the 

2 Federal Reserve Bank of New York may des3 ignate, or permit the continuation of any prior 

4 designation of, the financial institution as a pri5 mary dealer in United States Government debt 

6 instruments. 

7 (B) PROHIBITION ON SERVICE AS A RE8 POSITORY OF GOVERNMENT FUNDS.—The fi9 nancial institution may not serve as agent of 

10 the United States Government or serve as re11 pository for United States Government funds. 

12 The imposition of either sanction under subpara13 graph (A) or (B) shall be treated as 1 sanction for 

14 purposes of subsection (b), and the imposition of 

15 both such sanctions shall be treated as 2 sanctions 

16 for purposes of subsection (b). 

17 (6) PROCUREMENT SANCTION.—The United 

18 States Government may not procure, or enter into 

19 any contract for the procurement of, any goods or 

20 services from the person subject to subsection (b). 

21 (7) FOREIGN EXCHANGE.—The President may, 

22 pursuant to such regulations as the President may 

23 prescribe, prohibit any transactions in foreign ex24 change that are subject to the jurisdiction of the 


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1 United States and in which the person subject to 

2 subsection (b) has any interest. 

3 (8) BANKING TRANSACTIONS.—The President 

4 may, pursuant to such regulations as the President 

5 may prescribe, prohibit any transfers of credit or 

6 payments between financial institutions or by, 

7 through, or to any financial institution, to the extent 

8 that such transfers or payments are subject to the 

9 jurisdiction of the United States and involve any in10 terest of the person subject to subsection (b). 

11 (9) PROPERTY TRANSACTIONS.—The President 

12 may, pursuant to such regulations as the President 

13 may prescribe, prohibit any person from— 

14 (A) acquiring, holding, withholding, using, 

15 transferring, withdrawing, transporting, import16 ing, or exporting any property that is subject to 

17 the jurisdiction of the United States and with 

18 respect to which the person subject to sub19 section (b) has any interest; 

20 (B) dealing in or exercising any right, 

21 power, or privilege with respect to such prop22 erty; or 

23 (C) conducting any transaction involving 

24 such property. 


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1 (10) BAN ON INVESTMENT IN EQUITY OR DEBT

2 OF SANCTIONED PERSON.—The President may, pur3 suant to such regulations or guidelines as the Presi4 dent may prescribe, prohibit any United States per5 son from investing in or purchasing significant 

6 amounts of equity or debt instruments of the person 

7 subject to subsection (b). 

8 (11) EXCLUSION OF CORPORATE OFFICERS.— 

9 The President may direct the Secretary of State to 

10 deny a visa to, and the Secretary of Homeland Secu11 rity to exclude from the United States, any alien 

12 that the President determines is a corporate officer 

13 or principal of, or a shareholder with a controlling 

14 interest in, the person subject to subsection (b). 

15 (12) SANCTIONS ON PRINCIPAL EXECUTIVE OF16 FICERS.—The President may impose on the prin17 cipal executive officer or officers of the person sub18 ject to subsection (b), or on persons performing 

19 similar functions and with similar authorities as 

20 such officer or officers, any of the sanctions under 

21 this subsection. 

22 SEC. 106. EXEMPTIONS, WAIVERS, AND RULEMAKING. 

23 (a) EXEMPTIONS.—The following activities shall be 

24 exempt from sanctions under sections 103 and 105: 


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1 (1) Activities subject to the reporting require2 ments under title V of the National Security Act of 

3 1947 (50 U.S.C. 3091 et seq.), or any authorized in4 telligence activities of the United States. 

5 (2) The admission of an alien to the United 

6 States if such admission is necessary to comply with 

7 United States obligations under the Agreement be8 tween the United Nations and the United States of 

9 America regarding the Headquarters of the United 

10 Nations, signed at Lake Success June 26, 1947, and 

11 entered into force November 21, 1947, under the 

12 Convention on Consular Relations, done at Vienna 

13 April 24, 1963, and entered into force March 19, 

14 1967, or under other international agreements. 

15 (b) EXCEPTION RELATING TO IMPORTATION OF

16 GOODS.—The requirement to impose sanctions under sec17 tions 103 and 105 shall not include the authority to im18 pose sanctions on the importation of goods. 

19 (c) WAIVER.—The President may waive the applica20 tion of sanctions under section 103 or 105 if before the 

21 waiver to takes effect, the President submits to the appro22 priate congressional committees— 

23 (1) a written determination that the waiver— 

24 (A) is vital to the national security inter25 ests of the United States; or 


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1 (B) will further the enforcement of this 

2 title; and 

3 (2) a certification that the Government of the 

4 Russian Federation has made significant efforts to 

5 reduce the number and intensity of the cyber intru6 sions conducted by that Government. 

7 (d) RULEMAKING.—The President may prescribe 

8 such rules and regulations as may be necessary to carry 

9 out the provisions of this title. 

10 (e) RULE OF CONSTRUCTION.—Nothing in this title 

11 shall be construed— 

12 (1) to supersede the limitations on the use of 

13 rocket engines for national security purposes under 

14 section 1608 of the Carl Levin and Howard P. 

15 ‘‘Buck’’ McKeon National Defense Authorization 

16 Act for Fiscal Year 2015 (Public Law 113–291; 128 

17 Stat. 3626; 10 U.S.C. 2271 note), as amended by 

18 section 1607 of the National Defense Authorization 

19 Act for Fiscal Year 2016 (Public Law 114–92; 129 

20 Stat. 1100) and section 1602 of the National De21 fense Authorization Act for Fiscal Year 2017 (Pub22 lic Law 114–328); or 

23 (2) to prohibit a contractor or subcontractor of 

24 the Department of Defense from acquiring compo25 nents referred to in such section 1608. 


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1 SEC. 107. PUBLIC SERVICE CAMPAIGN RELATING TO CY2 BERSECURITY AND COMBATING 

3 DISINFORMATION. 

4 (a) IN GENERAL.—The Secretary of Homeland Secu5 rity shall conduct a series of public service campaigns to 

6 educate the people of the United States on threats to their 

7 cybersecurity and to urge better online practices to ensure 

8 the protection of private information. In conducting such 

9 campaigns, the Secretary shall offer training in basic skills 

10 on fact checking news articles and media sources. 

11 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated for the Secretary of 

13 Homeland Security $25,000,000 for fiscal years 2018 

14 through 2019 to carry out the activities set forth in sub15 section (a). 

16 SEC. 108. TERMINATION. 

17 Sanctions imposed under this title shall terminate on 

18 the date on which the President submits to the appro19 priate congressional committees a certification that the 

20 Government of the Russian Federation has ceased 

21 cyberattacks against United States official and unofficial 

22 entities. 

23 SEC. 109. RULE OF CONSTRUCTION. 

24 Nothing in this title may be construed to limit the 

25 authority of the President to designate or sanction persons 

26 pursuant to an applicable Executive order or otherwise 


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1 pursuant to the International Emergency Economic Pow2 ers Act (50 U.S.C. 1701 et seq.). 

3 TITLE II—COUNTERING RUSSIAN 

4 AGGRESSION 

5 SEC. 201. SHORT TITLE. 

6 The title may be cited as the ‘‘Countering Russian 

7 Aggression Act of 2017’’. 

8 SEC. 202. FINDINGS. 

9 Congress makes the following findings: 

10 (1) The Government of the Russian Federation 

11 continues to violate its commitments under the Con12 ference on Security and Co-operation in Europe 

13 Final Act, concluded at Helsinki August 1, 1975 

14 (commonly referred to as the ‘‘Helsinki Final Act’’), 

15 which laid the groundwork for the establishment of 

16 the Organization for Security and Co-operation in 

17 Europe, of which the Russian Federation is a mem18 ber, by its illegal annexation of Crimea in 2014, its 

19 illegal occupation of South Ossetia and Abkhazia in 

20 Georgia in 2008, and its ongoing destabilizing activi21 ties in eastern Ukraine. 

22 (2) The Government of the Russian Federation 

23 has ignored the terms of the August 2008 cease-fire 

24 agreement relating to Georgia, which requires the 

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1 itarian groups to the regions of South Ossetia and 

2 Abkhazia, and monitoring of the conflict areas by 

3 the European Union Monitoring Mission. 

4 (3) The Government of the Russian Federation 

5 is failing to comply with the terms of the Minsk 

6 Agreement to address the ongoing conflict in eastern 

7 Ukraine, signed in Minsk, Belarus, on February 11, 

8 2015, by the leaders of Ukraine, Russia, France, 

9 and Germany, as well as the Minsk Protocol, which 

10 was agreed to on September 5, 2014 (in this Act 

11 collectively referred to as the ‘‘Minsk Agreements’’). 

12 (4) On October 7, 2016, United States Sec13 retary of State John Kerry, addressing the conflict 

14 in Syria, said ‘‘Russia and the regime owe the world 

15 more than an explanation about why they keep hit16 ting hospitals, and medical facilities, and children 

17 and women. . . . These are acts that beg for an ap18 propriate investigation of war crimes, and those who 

19 commit these would and should be held accountable 

20 for these actions. . . . This is a targeted strategy to 

21 terrorize civilians.’’. 

22 SEC. 203. SENSE OF CONGRESS. 

23 It is the sense of Congress that— 

24 (1) the President should call on all parties to 

25 fully implement the Minsk Agreement to address the 


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1 ongoing conflict in Eastern Ukraine signed in 

2 Minsk, Belarus, on February 11, 2015, by the lead3 ers of Ukraine, Russia, France, and Germany as 

4 well as the Minsk Protocol agreed to on September 

5 5, 2014; and 

6 (2) the international community should conduct 

7 a full investigation into allegations that the Russian 

8 Federation committed war crimes through its mili9 tary actions in Syria. 

10 SEC. 204. PROHIBITIONS AGAINST UNITED STATES REC11 OGNITION OF THE RUSSIAN FEDERATION’S 

12 ANNEXATION OF CRIMEA AND OCCUPATION 

13 OF SOUTH OSSETIA AND ABKHAZIA. 

14 (a) UNITED STATES POLICY AGAINST RECOGNITION

15 OF TERRITORIAL CHANGES EFFECTED BY FORCE

16 ALONE.—Between the years of 1940 and 1991, the 

17 United States did not recognize the forcible incorporation 

18 and annexation of the three Baltic States of Lithuania, 

19 Latvia, and Estonia into the Soviet Union under a policy 

20 known as the ‘‘Stimson Doctrine’’. 

21 (b) NON-RECOGNITION OF SOVEREIGNTY OF RUS22 SIAN FEDERATION OVER CRIMEA AND INDEPENDENCE

23 OF SOUTH OSSETIA AND ABKHAZIA.—No Federal agency 

24 shall take any action or extend any assistance that recog25 nizes or implies any recognition of— 


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1 (1) the de jure or de facto sovereignty of the 

2 Russian Federation over Crimea or its airspace or 

3 territorial waters; or 

4 (2) the de jure or de facto independence of 

5 South Ossetia or Abkhazia, or the airspace or terri6 torial waters of South Ossetia or Abkhazia, from 

7 Georgia. 

8 (c) DEPARTMENT OF JUSTICE AFFIRMATION OF

9 NON-RECOGNITION OF SOVEREIGNTY OF RUSSIAN FED10 ERATION OVER CRIMEA AND INDEPENDENCE OF SOUTH

11 OSSETIA AND ABKHAZIA.—In any matter before any 

12 United States court, upon request of the court or any 

13 party to the matter, the Attorney General shall affirm the 

14 United States policies of not recognizing— 

15 (1) the de jure or de facto sovereignty of the 

16 Russian Federation over Crimea or its airspace or 

17 territorial waters; and 

18 (2) the de jure or de facto independence of 

19 South Ossetia or Abkhazia, or the airspace or terri20 torial waters of South Ossetia or Abkhazia, from 

21 Georgia. 

22 (d) DOCUMENTS PORTRAYING CRIMEA AS PART OF

23 RUSSIAN FEDERATION OR SOUTH OSSETIA OR ABKHAZIA

24 AS INDEPENDENT FROM GEORGIA.—The Government 

25 Publishing Office shall not print any map, document, 


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1 record, or other paper of the United States portraying or 

2 otherwise indicating— 

3 (1) Crimea as part of the territory of the Rus4 sian Federation; or 

5 (2) South Ossetia or Abkhazia as anything 

6 other than a part of Georgia. 

7 (e) UNITED STATES ARMED FORCES.—The Sec8 retary of Defense may not take any action, including any 

9 movement of aircraft or vessels, that implies recognition 

10 of— 

11 (1) the sovereignty of the Russian Federation 

12 over Crimea or its airspace or territorial waters; or 

13 (2) the independence of Abkhazia or South 

14 Ossetia, or the airspace or territorial waters of 

15 South Ossetia or Abkhazia, from Georgia. 

16 (f) UNITED STATES FLAGGED VESSELS.—No vessel 

17 that is issued a certificate of documentation under chapter 

18 121 of title 46, United States Code, may take any action 

19 that implies recognition of— 

20 (1) the sovereignty of the Russian Federation 

21 over Crimea or its territorial waters; or 

22 (2) the independence of South Ossetia or 

23 Abkhazia, or the territorial waters of South Ossetia 

24 or Abkhazia, from Georgia. 


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1 (g) UNITED STATES AIRCRAFT.—No aircraft oper2 ated by an air carrier that holds an air carrier certificate 

3 issued under chapter 411 of title 49, United States Code, 

4 may take any action that implies recognition of— 

5 (1) the sovereignty of the Russian Federation 

6 over Crimea or its airspace; or 

7 (2) the independence of South Ossetia or 

8 Abkhazia, or the airspace of South Ossetia or 

9 Abkhazia, from Georgia. 

10 SEC. 205. STATEMENTS OF POLICY WITH RESPECT TO 

11 UKRAINE. 

12 (a) IN GENERAL.—It is the policy of the United 

13 States to further assist the Government of Ukraine in re14 storing its sovereignty and territorial integrity to contain, 

15 reverse, and deter the aggression of the Russian Federa16 tion in Ukraine. That policy shall be carried into effect, 

17 among other things, through a comprehensive effort, in 

18 coordination with allies and partners of the United States 

19 where appropriate, that includes sanctions, diplomacy, and 

20 assistance, including lethal defensive weapons systems, for 

21 the people of Ukraine intended to enhance their ability to 

22 consolidate a democracy based on the rule of law and with 

23 a free market economy and to exercise their right under 

24 international law to self-defense. 


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1 (b) ADDITIONAL STATEMENT OF POLICY.—It is fur2 ther the policy of the United States— 

3 (1) to use its voice, vote, and influence in inter4 national fora to encourage other countries, including 

5 United States allies, to provide assistance that is 

6 similar to assistance described in subsection (a) to 

7 Ukraine; 

8 (2) to ensure that any relevant sanctions relief 

9 for the Russian Federation is contingent on the rec10 ognition by the Government of the Russian Federa11 tion of the sovereignty of Ukraine over Crimea as 

12 well as timely, complete, and verifiable implementa13 tion of the Minsk Agreements, especially the restora14 tion of Ukraine’s control of the entirety of its east15 ern border with the Russian Federation in the con16 flict zone; 

17 (3) to support Georgia’s sovereignty, independ18 ence, and territorial integrity and the inviolability of 

19 its borders and to recognize the areas of Abkhazia 

20 and South Ossetia as regions of Georgia occupied by 

21 the Russian Federation; and 

22 (4) to further call on the Government of the 

23 Russian Federation to take steps to fulfill all the 

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1 turning military forces to pre-war positions and en2 suring access to international humanitarian aid to 

3 all those affected by the conflict. 

4 SEC. 206. CODIFICATION OF EXECUTIVE ORDERS IMPOSING 

5 SANCTIONS IN RELATION TO THE SITUATION 

6 IN UKRAINE. 

7 (a) IN GENERAL.—The Executive orders specified in 

8 subsection (b), and sanctions imposed pursuant to such 

9 Executive orders, shall remain in effect until the date 

10 specified in section 216. 

11 (b) EXECUTIVE ORDERS SPECIFIED.—The Executive 

12 orders specified in this subsection are the following: 

13 (1) Executive Order 13660 (79 Fed. Reg. 

14 13493; relating to blocking property of certain per15 sons contributing to the situation in Ukraine). 

16 (2) Executive Order 13661 (79 Fed. Reg. 

17 15535; relating to blocking property of additional 

18 persons contributing to the situation in Ukraine). 

19 (3) Executive Order 13662 (79 Fed. Reg. 

20 16169; relating to blocking property of additional 

21 persons contributing to the situation in Ukraine). 

22 (4) Executive Order 13685 (79 Fed. Reg. 

23 77357; relating to blocking property of certain per24 sons and prohibiting certain transactions with re25 spect to the Crimea region of Ukraine). 


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1 SEC. 207. SANCTIONS WITH RESPECT TO THE DEVELOP2 MENT AND PRODUCTION OF PETROLEUM 

3 AND NATURAL GAS RESOURCES IN THE RUS4 SIAN FEDERATION. 

5 (a) DEVELOPMENT OF PETROLEUM AND NATURAL

6 GAS RESOURCES OF THE RUSSIAN FEDERATION.— 

7 (1) IN GENERAL.—The President shall impose 

8 5 or more of the sanctions described in section 213 

9 with respect to a person if the President determines 

10 that the person knowingly, on or after the date of 

11 the enactment of this Act— 

12 (A) makes an investment described in 

13 paragraph (2) of $20,000,000 or more; or 

14 (B) makes a combination of investments 

15 described in paragraph (2) in a 12-month pe16 riod if each such investment is of not less than 

17 $5,000,000 and such investments equal or ex18 ceed $20,000,000 in the aggregate. 

19 (2) INVESTMENT DESCRIBED.—An investment 

20 described in this paragraph is an investment that di21 rectly and significantly contributes to the enhance22 ment of the ability of the Russian Federation to de23 velop petroleum or natural gas resources. 

24 (b) PRODUCTION OF PETROLEUM PRODUCTS AND

25 NATURAL GAS.— 


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1 (1) IN GENERAL.—The President shall impose 

2 5 or more of the sanctions described in section 213 

3 with respect to a person if the President determines 

4 that the person knowingly, on or after the date of 

5 the enactment of this Act, sells, leases, or provides 

6 to the Russian Federation goods, services, tech7 nology, information, or support described in para8 graph (2)— 

9 (A) any of which has a fair market value 

10 of $1,000,000 or more; or 

11 (B) that, during a 12-month period, have 

12 an aggregate fair market value of $5,000,000 

13 or more. 

14 (2) GOODS, SERVICES, TECHNOLOGY, INFORMA15 TION, OR SUPPORT DESCRIBED.—Goods, services, 

16 technology, information, or support described in this 

17 paragraph are goods, services, technology, informa18 tion, or support that could directly and significantly 

19 facilitate the maintenance or expansion of the pro20 duction of petroleum products or natural gas in the 

21 Russian Federation, including any direct and signifi22 cant assistance with respect to the construction, 

23 modernization, or repair of petroleum refineries and 

24 natural gas infrastructure. 


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1 SEC. 208. SANCTIONS WITH RESPECT TO THE DEVELOP2 MENT OF PIPELINES IN THE RUSSIAN FED3 ERATION. 

4 (a) IN GENERAL.—The President shall impose 5 or 

5 more of the sanctions described in section 213 with respect 

6 to a person if the President determines that the person 

7 knowingly, on or after the date of the enactment of this 

8 Act, makes an investment described in subsection (b), or 

9 sells, leases, or provides to the Russian Federation, for 

10 the construction of Russian energy export pipelines, goods, 

11 services, technology, information, or support described in 

12 subsection (c)— 

13 (1) any of which has a fair market value of 

14 $1,000,000 or more; or 

15 (2) that, during a 12-month period, have an ag16 gregate fair market value of $5,000,000 or more. 

17 (b) INVESTMENT DESCRIBED.—An investment de18 scribed in this subsection is an investment that directly 

19 and significantly contributes to the enhancement of the 

20 ability of the Russian Federation to construct energy ex21 port pipelines. 

22 (c) GOODS, SERVICES, TECHNOLOGY, INFORMATION, 

23 OR SUPPORT DESCRIBED.—Goods, services, technology, 

24 information, or support described in this subsection are 

25 goods, services, technology, information, or support that 

26 could directly and significantly facilitate the maintenance 


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1 or expansion of the construction, modernization, or repair 

2 of energy pipelines by the Russian Federation. 

3 SEC. 209. SANCTIONS WITH RESPECT TO THE DEVELOP4 MENT OF CIVIL NUCLEAR PROJECTS BY THE 

5 RUSSIAN FEDERATION. 

6 (a) IN GENERAL.—The President shall impose 5 or 

7 more of the sanctions described in section 213 with respect 

8 to a person if the President determines that the person 

9 knowingly, on or after the date of the enactment of this 

10 Act, makes an investment described in subsection (b), or 

11 sells, leases, or provides to the Russian Federation, for 

12 the construction of civil nuclear projects by the Russian 

13 Federation, goods, services, technology, information, or 

14 support described in subsection (c)— 

15 (1) any of which has a fair market value of 

16 $1,000,000 or more; or 

17 (2) that, during a 12-month period, have an ag18 gregate fair market value of $5,000,000 or more. 

19 (b) INVESTMENT DESCRIBED.—An investment de20 scribed in this subsection is an investment that directly 

21 and significantly contributes to the enhancement of the 

22 ability of the Russian Federation to construct civil nuclear 

23 power plants. 

24 (c) GOODS, SERVICES, TECHNOLOGY, INFORMATION, 

25 OR SUPPORT DESCRIBED.—Goods, services, technology, 


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1 information, or support described in this subsection are 

2 goods, services, technology, information, or support that 

3 could directly and significantly facilitate the maintenance 

4 or expansion of the construction, modernization, or repair 

5 of civil nuclear plants by the Russian Federation. 

6 SEC. 210. SANCTIONS WITH RESPECT TO PURCHASE, SUB7 SCRIPTION TO, OR FACILITATION OF THE 

8 ISSUANCE OF SOVEREIGN DEBT OF THE RUS9 SIAN FEDERATION. 

10 The President shall impose 5 or more of the sanctions 

11 described in section 213 with respect to a person if the 

12 President determines that the person knowingly, on or 

13 after the date of the enactment of this Act, purchases, 

14 subscribes to, or facilitates the issuance of— 

15 (1) sovereign debt of the Government of the 

16 Russian Federation issued on or after such date of 

17 enactment, including governmental bonds; or 

18 (2) debt of any entity owned or controlled by 

19 the Government of the Russian Federation issued on 

20 or after such date of enactment, including bonds. 


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1 SEC. 211. SANCTIONS WITH RESPECT TO INVESTMENT IN 

2 OR FACILITATION OF PRIVATIZATION OF 

3 STATE-OWNED ASSETS BY THE RUSSIAN FED4 ERATION. 

5 The President shall impose 5 or more of the sanctions 

6 described in section 213 if the President determines that 

7 a person, with actual knowledge, on or after the date of 

8 the enactment of this Act, makes an investment of 

9 $10,000,000 or more (or any combination of investments 

10 of not less than $1,000,000 each, which in the aggregate 

11 equals or exceeds $10,000,000 in any 12-month period), 

12 or facilitates such an investment, if the investment directly 

13 and significantly contributes to the ability of the Russian 

14 Federation to privatize state-owned assets. 

15 SEC. 212. PROHIBITING CERTAIN TRANSACTIONS IN AREAS 

16 CONTROLLED BY THE RUSSIAN FEDERATION. 

17 (a) IN GENERAL.—The President shall impose with 

18 respect to a foreign person the sanctions described in sub19 section (b) if the President determines that the foreign 

20 person, based on credible information— 

21 (1) is responsible for, complicit in, or respon22 sible for ordering, controlling, or otherwise directing, 

23 the commission of serious human rights abuses in 

24 any territory forcibly occupied or otherwise con25 trolled by the Government of the Russian Federa26 tion; 


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1 (2) has materially assisted, sponsored, or pro2 vided financial, material, or technological support 

3 for, or goods or services to, a foreign person that is 

4 responsible for, complicit in, or responsible for order5 ing, controlling, or otherwise directing, the commis6 sion of serious human rights abuses in any territory 

7 forcibly occupied or otherwise controlled by the Gov8 ernment of the Russian Federation; or 

9 (3) is owned or controlled by a foreign person, 

10 or has acted or purported to act for or on behalf of, 

11 directly or indirectly, a foreign person, that is re12 sponsible for, complicit in, or responsible for order13 ing, controlling, or otherwise directing, the commis14 sion of serious human rights abuses in any territory 

15 forcibly occupied or otherwise controlled by the Gov16 ernment of the Russian Federation. 

17 (b) SANCTIONS DESCRIBED.—The sanctions de18 scribed in this subsection are the following: 

19 (1) ASSET BLOCKING.—The exercise of all pow20 ers granted to the President by the International 

21 Emergency Economic Powers Act (50 U.S.C. 1701 

22 et seq.) to the extent necessary to block and prohibit 

23 all transactions in all property and interests in prop24 erty of a person determined by the President to be 

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1 ests in property are in the United States, come with2 in the United States, or are or come within the pos3 session or control of a United States person. 

4 (2) EXCLUSION FROM THE UNITED STATES

5 AND REVOCATION OF VISA OR OTHER DOCUMENTA6 TION.—In the case of an alien determined by the 

7 President to be subject to subsection (a), denial of 

8 a visa to, and exclusion from the United States of, 

9 the alien, and revocation in accordance with section 

10 221(i) of the Immigration and Nationality Act (8 

11 U.S.C. 1201(i)), of any visa or other documentation 

12 of the alien. 

13 (c) WAIVER.—The President may waive the applica14 tion of sanctions under subsection (b) with respect to a 

15 person if the President— 

16 (1) determines that such a waiver is vital to the 

17 national interests of the United States; and 

18 (2) before issuing the waiver, submits to the ap19 propriate congressional committees a certification 

20 that the Government of the Russian Federation has 

21 made efforts to reduce serious human rights abuses 

22 in any territory forcibly occupied or otherwise con23 trolled by the Government of the Russian Federa24 tion. 

25 (d) IMPLEMENTATION; PENALTIES.— 


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1 (1) IMPLEMENTATION.—The President may ex2 ercise all authorities provided to the President under 

3 sections 203 and 205 of the International Emer4 gency Economic Powers Act (50 U.S.C. 1702 and 

5 1704) to carry out subsection (b)(1). 

6 (2) PENALTIES.—A person that violates, at7 tempts to violate, conspires to violate, or causes a 

8 violation of subsection (b)(1) or any regulation, li9 cense, or order issued to carry out subsection (b)(1) 

10 shall be subject to the penalties set forth in sub11 sections (b) and (c) of section 206 of the Inter12 national Emergency Economic Powers Act (50 

13 U.S.C. 1705) to the same extent as a person that 

14 commits an unlawful act described in subsection (a) 

15 of that section. 

16 SEC. 213. SANCTIONS DESCRIBED. 

17 (a) IN GENERAL.—The sanctions to be imposed with 

18 respect to a sanctioned person under this title (other than 

19 section 212) are the following: 

20 (1) EXPORT-IMPORT BANK ASSISTANCE FOR

21 EXPORTS TO SANCTIONED PERSONS.—The President 

22 may direct the Export-Import Bank of the United 

23 States not to give approval to the issuance of any 

24 guarantee, insurance, extension of credit, or partici25 pation in the extension of credit in connection with 


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1 the export of any goods or services to the sanctioned 

2 person. 

3 (2) EXPORT SANCTION.—The President may 

4 order the United States Government not to issue 

5 any specific license and not to grant any other spe6 cific permission or authority to export any goods or 

7 technology to the sanctioned person under— 

8 (A) the Export Administration Act of 1979 

9 (50 U.S.C. 4601 et seq.) (as continued in effect 

10 pursuant to the International Emergency Eco11 nomic Powers Act (50 U.S.C. 1701 et seq.)); 

12 (B) the Arms Export Control Act (22 

13 U.S.C. 2751 et seq.); 

14 (C) the Atomic Energy Act of 1954 (42 

15 U.S.C. 2011 et seq.); or 

16 (D) any other statute that requires the 

17 prior review and approval of the United States 

18 Government as a condition for the export or re19 export of goods or services. 

20 (3) LOANS FROM UNITED STATES FINANCIAL

21 INSTITUTIONS.—The President may prohibit any 

22 United States financial institution from making 

23 loans or providing credits to the sanctioned person 

24 totaling more than $10,000,000 in any 12-month 

25 period unless the person is engaged in activities to 


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1 relieve human suffering and the loans or credits are 

2 provided for such activities. 

3 (4) LOANS FROM INTERNATIONAL FINANCIAL

4 INSTITUTIONS.—The President may direct the 

5 United States executive director to each inter6 national financial institution to use the voice and 

7 vote of the United States to oppose any loan from 

8 the international financial institution that would 

9 benefit the sanctioned person. 

10 (5) PROHIBITIONS ON FINANCIAL INSTITU11 TIONS.—The following prohibitions may be imposed 

12 against the sanctioned person if that person is a fi13 nancial institution: 

14 (A) PROHIBITION ON DESIGNATION AS

15 PRIMARY DEALER.—Neither the Board of Gov16 ernors of the Federal Reserve System nor the 

17 Federal Reserve Bank of New York may des18 ignate, or permit the continuation of any prior 

19 designation of, the financial institution as a pri20 mary dealer in United States Government debt 

21 instruments. 

22 (B) PROHIBITION ON SERVICE AS A RE23 POSITORY OF GOVERNMENT FUNDS.—The fi24 nancial institution may not serve as agent of 


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1 the United States Government or serve as re2 pository for United States Government funds. 

3 The imposition of either sanction under subpara4 graph (A) or (B) shall be treated as 1 sanction for 

5 purposes of this title, and the imposition of both 

6 such sanctions shall be treated as 2 sanctions for 

7 purposes of this title. 

8 (6) PROCUREMENT SANCTION.—The United 

9 States Government may not procure, or enter into 

10 any contract for the procurement of, any goods or 

11 services from the sanctioned person. 

12 (7) FOREIGN EXCHANGE.—The President, pur13 suant to such regulations as the President may pre14 scribe, may prohibit any transactions in foreign ex15 change that are subject to the jurisdiction of the 

16 United States and in which the sanctioned person 

17 has any interest. 

18 (8) BANKING TRANSACTIONS.—The President, 

19 pursuant to such regulations as the President may 

20 prescribe, may prohibit any transfers of credit or 

21 payments between financial institutions or by, 

22 through, or to any financial institution, to the extent 

23 that such transfers or payments are subject to the 

24 jurisdiction of the United States and involve any in25 terest of the sanctioned person. 


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1 (9) PROPERTY TRANSACTIONS.—The President, 

2 pursuant to such regulations as the President may 

3 prescribe, may prohibit any person from— 

4 (A) acquiring, holding, withholding, using, 

5 transferring, withdrawing, transporting, import6 ing, or exporting any property that is subject to 

7 the jurisdiction of the United States and with 

8 respect to which the sanctioned person has any 

9 interest; 

10 (B) dealing in or exercising any right, 

11 power, or privilege with respect to such prop12 erty; or 

13 (C) conducting any transaction involving 

14 such property. 

15 (10) BAN ON INVESTMENT IN EQUITY OR DEBT

16 OF SANCTIONED PERSON.—The President, pursuant 

17 to such regulations or guidelines as the President 

18 may prescribe, may prohibit any United States per19 son from investing in or purchasing significant 

20 amounts of equity or debt instruments of the sanc21 tioned person. 

22 (11) EXCLUSION OF CORPORATE OFFICERS.— 

23 The President may direct the Secretary of State to 

24 deny a visa to, and the Secretary of Homeland Secu25 rity to exclude from the United States, any alien 


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1 that the President determines is a corporate officer 

2 or principal of, or a shareholder with a controlling 

3 interest in, the sanctioned person. 

4 (12) SANCTIONS ON PRINCIPAL EXECUTIVE OF5 FICERS.—The President may impose on the prin6 cipal executive officer or officers of the sanctioned 

7 person, or on persons performing similar functions 

8 and with similar authorities as such officer or offi9 cers, any of the sanctions under this subsection. 

10 (b) SANCTIONED PERSON DEFINED.—In this section, 

11 the term ‘‘sanctioned person’’ means a person subject to 

12 sanctions under this title (other than section 212). 

13 SEC. 214. EXEMPTIONS, WAIVERS, AND RULEMAKING. 

14 (a) EXEMPTIONS.—The following activities shall be 

15 exempt from sanctions under this title: 

16 (1) Activities subject to the reporting require17 ments under title V of the National Security Act of 

18 1947 (50 U.S.C. 3091 et seq.), or any authorized in19 telligence activities of the United States. 

20 (2) The admission of an alien to the United 

21 States if such admission is necessary to comply with 

22 United States obligations under the Agreement be23 tween the United Nations and the United States of 

24 America regarding the Headquarters of the United 

25 Nations, signed at Lake Success June 26, 1947, and 


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1 entered into force November 21, 1947, under the 

2 Convention on Consular Relations, done at Vienna 

3 April 24, 1963, and entered into force March 19, 

4 1967, or under other international agreements. 

5 (b) EXCEPTION RELATING TO IMPORTATION OF

6 GOODS.—The requirement to impose sanctions under this 

7 title shall not include the authority to impose sanctions 

8 on the importation of goods. 

9 (c) WAIVER.—The President may waive the applica10 tion of sanctions under section 207, 208, 209, 210, or 211 

11 if the President submits to the appropriate congressional 

12 committees— 

13 (1) a written determination that the waiver— 

14 (A) is vital to the national security inter15 ests of the United States; or 

16 (B) will further the enforcement of this 

17 title; and 

18 (2) before issuing the waiver, a certification 

19 that the Government of the Russian Federation is 

20 taking steps to implement the Minsk Agreements 

21 and to substantially decrease its military activities in 

22 Syria. 


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1 SEC. 215. INCLUSION OF ALL FUNDS IN RECORDS OF CER2 TAIN TRANSACTIONS. 

3 (a) IN GENERAL.—Section 5326 of title 31, United 

4 States Code, is amended— 

5 (1) in the section heading, by striking ‘‘coin 

6 and currency’’; 

7 (2) in subsection (a)— 

8 (A) in the matter preceding paragraph (1), 

9 by striking ‘‘subtitle and’’ and inserting ‘‘sub10 title or to’’; and 

11 (B) in paragraph (1)(A), by striking 

12 ‘‘United States coins or currency (or such other 

13 monetary instruments as the Secretary may de14 scribe in such order)’’ and inserting ‘‘funds (as 

15 the Secretary may describe in such order),’’; 

16 and 

17 (3) in subsection (b)— 

18 (A) in paragraph (1)(A), by striking ‘‘coins 

19 or currency (or monetary instruments)’’ and in20 serting ‘‘funds’’; and 

21 (B) in paragraph (2), by striking ‘‘coins or 

22 currency (or such other monetary instruments 

23 as the Secretary may describe in the regulation 

24 or order)’’ and inserting ‘‘funds (as the Sec25 retary may describe in the regulation or 

26 order)’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 53 of title 31, United States Code, is amended 

3 by striking the item relating to section 5326 and inserting 

4 the following: 

‘‘5326. Records of certain domestic transactions.’’. 

5 SEC. 216. TERMINATION. 

6 Sanctions imposed under this title shall terminate on 

7 the date on which the President submits to the appro8 priate congressional committees a certification that the 

9 Government of the Russian Federation has— 

10 (1) ceased ordering, controlling, or otherwise di11 recting, supporting, or financing, significant acts in12 tended to undermine the peace, security, stability, 

13 sovereignty, or territorial integrity of Ukraine, in14 cluding through an agreement between the appro15 priate parties; and 

16 (2) halted military operations in Syria. 

17 SEC. 217. RULE OF CONSTRUCTION. 

18 Nothing in this title may be construed to limit the 

19 authority of the President to designate or sanction persons 

20 pursuant to an applicable Executive order or otherwise 

21 pursuant to the International Emergency Economic Pow22 ers Act (50 U.S.C. 1701 et seq.). 


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1 TITLE III—EUROPE AND EUR2 ASIA DEMOCRACY AND ANTI3 CORRUPTION INITIATIVE 

4 SEC. 301. SHORT TITLE. 

5 The title may be cited as the ‘‘Europe and Eurasia 

6 Democracy and Anti-Corruption Initiative Act of 2017’’. 

7 SEC. 302. FINDINGS. 

8 Congress makes the following findings: 

9 (1) The Government of the Russian Federation 

10 has sought to exert influence throughout Europe and 

11 Eurasia, including in the former states of the Soviet 

12 Union, by overtly and covertly providing resources to 

13 political parties, think tanks, and civil society groups 

14 that sow distrust in democratic institutions and ac15 tors, promote xenophobic and illiberal views, and 

16 otherwise undermine European unity. The Govern17 ment of the Russian Federation has also engaged in 

18 well-documented corruption practices as a means to19 ward undermining and buying influence in those Eu20 ropean countries. 

21 (2) The Government of the Russian Federation 

22 has largely eliminated a once vibrant Russian-lan23 guage independent media sector, and severely cur24 tails free and independent media within the borders 

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1 trolled Russian-language media disseminated within 

2 and outside of the Russian Federation routinely 

3 traffic in anti-Western falsehoods and 

4 disinformation, while few independent, fact-based 

5 media sources provide objective reporting for Rus6 sian-speaking audiences inside or outside of the Rus7 sian Federation. 

8 (3) Multinational corporations headquartered in 

9 the United States and European countries, and their 

10 subsidiaries and local franchisees, advertise on 

11 media outlets controlled and funded by the Govern12 ment of the Russian Federation and are known to 

13 routinely traffic in anti-Western falsehoods and 

14 disinformation. 

15 (4) Acting Undersecretary of the Treasury for 

16 Terrorism and Financial Crimes Adam Szubin stat17 ed on January 25, 2016, regarding Vladimir Putin, 

18 ‘‘We’ve seen him enriching his friends, his close al19 lies, and marginalizing those who he doesn’t view as 

20 friends using state assets. Whether that’s Russia’s 

21 energy wealth, whether it’s other state contracts, he 

22 directs those to whom he believes will serve him and 

23 excludes those who don’t.’’. 

24 (5) Many of President Putin’s inner circle and 

25 their families hold investments in the West, includVerDate Sep 11 2014 02:40 Jan 24, 2017 Jkt 069200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S94.IS S94

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1 ing in the United States, use the United States fi2 nancial system, and enjoy freedom of movement in 

3 the United States and around the world. 

4 SEC. 303. SENSE OF CONGRESS. 

5 It is the sense of Congress that— 

6 (1) the countries of Europe and Eurasia should 

7 redouble efforts to build resilience within their polit8 ical systems and civil society to counter efforts of 

9 the Government of the Russian Federation to exert 

10 malign influence and undermine democratic institu11 tions; 

12 (2) misinformation generated by the Russian 

13 Federation, which is distributed in a variety of lan14 guages and through overt and covert channels, in15 cluding traditional as well as social media, is pol16 luting the information space, drowning out com17 peting information, fanning pre-existing social, eco18 nomic, and political tensions, promoting conspir19 acies, and confusing and distracting its audiences; 

20 (3) the United States should identify areas of 

21 cooperation with countries throughout the region 

22 that are vulnerable to Russian aggression, 

23 disinformation, and hybrid warfare; 

24 (4) the United States should encourage the es25 tablishment of a commission for media freedom 


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1 within the Council of Europe, modeled on the Venice 

2 Commission regarding rule of law issues, that would 

3 be chartered to provide governments with expert rec4 ommendations on maintaining legal and regulatory 

5 regimes supportive of free and independent media 

6 and an informed citizenry able to distinguish be7 tween fact-based reporting, opinion, and 

8 disinformation; 

9 (5) the United States should encourage mem10 bers of the North Atlantic Treaty Organization (in 

11 this section referred to as ‘‘NATO’’) at the 2017 

12 NATO Summit to prioritize the development of a 

13 program within the NATO alliance to improve intel14 ligence cooperation among member states to combat 

15 corruption efforts in Europe by the Russian Federa16 tion, including the use by the Government of the 

17 Russian Federation of corruption to pressure the 

18 countries of Central and Eastern Europe to abandon 

19 democratic institutions; 

20 (6) the United States should— 

21 (A) encourage full compliance with the 

22 Convention on Combating Bribery of Foreign 

23 Public Officials in International Business 

24 Transactions (commonly referred to as the 

25 ‘‘Anti-Bribery Convention’’) of the Organization 


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1 for Economic Co-operation and Development 

2 (in this section referred to as the ‘‘OECD’’); 

3 (B) promote accession beyond the current 

4 40 state parties to the Convention; and 

5 (C) require robust implementation from 

6 those countries, like the Russian Federation, 

7 that seek to join the OECD; 

8 (7) it is vital to protect the integrity of the 

9 United States financial system from being used to 

10 shield illicit financial activity by officials of the Rus11 sian Federation and individuals in President Vladi12 mir Putin’s inner circle who have been enriched 

13 through corruption; 

14 (8) the United States should investigate and 

15 prosecute cases of corruption by Russian actors that 

16 use the United States financial system to shield il17 licit gains and support the efforts of allies of the 

18 United States to do the same; 

19 (9) the production and exportation from the 

20 Russian Federation of conventional energy provides 

21 a stable and abundant source of revenue for the 

22 Russian Federation to undermine democratic institu23 tions in Ukraine and elsewhere in Central and East24 ern Europe; and 


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1 (10) the President of the United States should 

2 actively use the authorizations under the Sergei 

3 Magnitsky Rule of Law Accountability Act of 2012 

4 (22 U.S.C. 5811 note) to sanction those responsible 

5 for Mr. Magnitsky’s death and the officials of the 

6 Russian Federation found complicit in gross viola7 tions of human rights. 

8 SEC. 304. REPORT ON ADVERTISING ON MEDIA OUTLETS 

9 CONTROLLED AND FUNDED BY THE GOVERN10 MENT OF THE RUSSIAN FEDERATION. 

11 Not later than 90 days after the date of the enact12 ment of this Act, and annually thereafter, the Secretary 

13 of State shall submit to the appropriate congressional 

14 committees a report describing in detail media outlets con15 trolled and funded by the Government of the Russian Fed16 eration that includes a description of— 

17 (1) media outlets that— 

18 (A) are controlled and funded by the Gov19 ernment of the Russian Federation, and any af20 filiated entities, whether operating within or 

21 outside the Russian Federation, including 

22 broadcast and satellite-based television, radio, 

23 Internet, and print media entities; and 


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1 (B) the Secretary determines routinely 

2 propagate anti-Western falsehoods and 

3 disinformation; and 

4 (2) multinational corporations headquartered in 

5 the United States, and subsidiaries and local 

6 franchisees of such corporations, that advertise on 

7 one or more media outlets identified on the list re8 quired by paragraph (1). 

9 SEC. 305. EUROPE AND EURASIA DEMOCRACY AND ANTI10 CORRUPTION FUND. 

11 (a) ESTABLISHMENT.—There is established in the 

12 Treasury of the United States a fund, to be known as the 

13 ‘‘Europe and Eurasia Democracy and Anti-Corruption 

14 Fund’’. 

15 (b) AVAILABILITY OF AMOUNTS.—Amounts in the 

16 Europe and Eurasia Democracy and Anti-Corruption 

17 Fund shall be available to the Secretary of State, as pro18 vided in appropriation Acts, to support bilateral and re19 gional efforts in Europe and Eurasia to— 

20 (1) improve democratic governance, trans21 parency, accountability, rule of law, and combat cor22 ruption, including by strengthening democratic civil 

23 society and political parties, and independent and 

24 nonpartisan think tanks; 


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1 (2) support the efforts of independent media 

2 outlets and public broadcasters to broadcast, dis3 tribute, and share information in all regions; 

4 (3) support objective, Russian-language, inde5 pendent media, investigative journalism, and civil so6 ciety watchdog groups working to combat corrup7 tion; 

8 (4) promote and protect Internet freedom; 

9 (5) support, as appropriate, the operations and 

10 activities of national anti-corruption and auditing of11 fices; 

12 (6) support programs that strengthen inde13 pendent judiciaries and prosecutors general offices; 

14 (7) strengthen cybersecurity practices of gov15 ernments and civil society organizations; 

16 (8) support research and analysis on the effects 

17 of information warfare on target audiences and best 

18 practices for promoting resilience; 

19 (9) support evidence-based civic education and 

20 advocacy programs to strengthen resilience to misin21 formation; 

22 (10) encourage cooperation with social media 

23 companies to strengthen the integrity of information 

24 on the Internet; and 

25 (11) support programs to counter ‘‘fake news’’. 


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1 (c) CONSULTATIONS.—The Secretary shall, in con2 sultation with the Administrator for the United States 

3 Agency for International Development and the Director of 

4 the Global Engagement Center of the Department of 

5 State, carry out activities described in subsection (b) di6 rectly or through nongovernmental or international orga7 nizations, such as the Organization for Security and Co8 operation in Europe, the National Endowment for Democ9 racy, the Black Sea Trust, the Balkan Trust for Democ10 racy, the Prague Civil Society Centre, the European En11 dowment for Democracy, and related organizations. 

12 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated for the Europe and Eur14 asia Democracy and Anti-Corruption Fund $100,000,000 

15 for fiscal years 2018 and 2019. 

16 SEC. 306. ESTABLISHMENT OF A RUSSIA UNIT IN THE FI17 NANCIAL CRIMES ENFORCEMENT NETWORK. 

18 (a) IN GENERAL.—The Secretary of the Treasury 

19 shall establish a high-level task force within the Financial 

20 Crimes Enforcement Network, in coordination with the 

21 Director of the Office of Foreign Assets Control and the 

22 Assistant Secretary for Intelligence and Analysis, that fo23 cuses on— 

24 (1) tracing, mapping, and prosecuting illicit fi25 nancial flows linked to the Russian Federation if 


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1 such flows interact with the United States financial 

2 system; 

3 (2) working with liaison officers in key United 

4 States embassies, especially in Europe, to work with 

5 local authorities to uncover and prosecute the net6 works responsible for the illicit financial flows de7 scribed in paragraph (1); and 

8 (3) seeking to expand the number of real estate 

9 geographic targeting orders beyond the number of 

10 cities to which such orders apply as of the date of 

11 the enactment of this Act to capture more links to 

12 illicit financial flows. 

13 (b) REPORT ON TREASURY LIAISON OFFICERS.—Not 

14 later than 180 days after the date of the enactment of 

15 this Act, the Secretary of the Treasury shall submit to 

16 Congress a report on the number of liaison officers de17 scribed in subsection (a)(2) that are working on tracing, 

18 mapping, and prosecuting illicit financial flows linked to 

19 the Russian Federation. 

20 SEC. 307. TERMINATION. 

21 This title shall terminate on the date that is 10 years 

22 after the date of the enactment of this Act. 

Æ 


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