II 

Calendar No. 461 

112TH CONGRESS 

2D SESSION S. 3406 

To authorize the extension of nondiscriminatory treatment (normal trade 

relations treatment) to products of the Russian Federation and Moldova, 

to require reports on the compliance of the Russian Federation with 

its obligations as a member of the World Trade Organization, and 

to impose sanctions on persons responsible for gross violations of human 

rights, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 19, 2012 

Mr. BAUCUS, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

A BILL 

To authorize the extension of nondiscriminatory treatment 

(normal trade relations treatment) to products of the 

Russian Federation and Moldova, to require reports on 

the compliance of the Russian Federation with its obligations as a member of the World Trade Organization, 

and to impose sanctions on persons responsible for gross 

violations of human rights, 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, 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•S 3406 PCS

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Russia and Moldova Jackson-Vanik Repeal and 

4 Magnitsky Rule of Law Accountability Act of 2012’’. 

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

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—PERMANENT NORMAL TRADE RELATIONS FOR THE 

RUSSIAN FEDERATION 

Sec. 101. Findings. 

Sec. 102. Termination of application of title IV of the Trade Act of 1974 to 

products of the Russian Federation. 

TITLE II—TRADE ENFORCEMENT MEASURES RELATING TO THE 

RUSSIAN FEDERATION 

Sec. 201. Reports on implementation by the Russian Federation of obligations 

as a member of the World Trade Organization and enforcement actions by the United States Trade Representative. 

Sec. 202. Promotion of the rule of law in the Russian Federation to support 

United States trade and investment. 

Sec. 203. Reports on laws, policies, and practices of the Russian Federation 

that discriminate against United States digital trade. 

Sec. 204. Efforts to reduce barriers to trade imposed by the Russian Federation. 

TITLE III—SANCTIONS WITH RESPECT TO PERSONS 

RESPONSIBLE FOR GROSS VIOLATIONS OF HUMAN RIGHTS 

Sec. 301. Short title. 

Sec. 302. Findings. 

Sec. 303. Definitions. 

Sec. 304. Identification of persons responsible for the detention, abuse, and 

death of Sergei Magnitsky and other gross violations of human 

rights. 

Sec. 305. Inadmissibility of certain aliens. 

Sec. 306. Financial measures. 

Sec. 307. Report to Congress. 

TITLE IV—PERMANENT NORMAL TRADE RELATIONS FOR 

MOLDOVA 

Sec. 401. Findings. 

Sec. 402. Termination of application of title IV of the Trade Act of 1974 to 

products of Moldova. 

mstockstill on DSK4VPTVN1PROD with BILLS

3 

•S 3406 PCS

1 TITLE I—PERMANENT NORMAL 

2 TRADE RELATIONS FOR THE 

3 RUSSIAN FEDERATION 

4 SEC. 101. FINDINGS. 

5 Congress finds the following: 

6 (1) The Russian Federation allows its citizens 

7 the right and opportunity to emigrate, free of any 

8 heavy tax on emigration or on the visas or other 

9 documents required for emigration and free of any 

10 tax, levy, fine, fee, or other charge on any citizens 

11 as a consequence of the desire of those citizens to 

12 emigrate to the country of their choice. 

13 (2) The Russian Federation has been found to 

14 be in full compliance with the freedom of emigration 

15 requirements under title IV of the Trade Act of 

16 1974 (19 U.S.C. 2431 et seq.) since 1994. 

17 (3) The Russian Federation has received nor18 mal trade relations treatment since concluding a bi19 lateral trade agreement with the United States that 

20 entered into force in 1992. 

21 (4) On December 16, 2011, the Ministerial 

22 Conference of the World Trade Organization invited 

23 the Russian Federation to accede to the World 

24 Trade Organization. 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•S 3406 PCS

1 SEC. 102. TERMINATION OF APPLICATION OF TITLE IV OF 

2 THE TRADE ACT OF 1974 TO PRODUCTS OF 

3 THE RUSSIAN FEDERATION. 

4 (a) PRESIDENTIAL DETERMINATIONS AND EXTEN5 SION OF NONDISCRIMINATORY TREATMENT.—Notwith6 standing any provision of title IV of the Trade Act of 1974 

7 (19 U.S.C. 2431 et seq.), the President may— 

8 (1) determine that such title should no longer 

9 apply to the Russian Federation; and 

10 (2) after making a determination under para11 graph (1) with respect to the Russian Federation, 

12 proclaim the extension of nondiscriminatory treat13 ment (normal trade relations treatment) to the prod14 ucts of the Russian Federation. 

15 (b) EFFECTIVE DATE OF NONDISCRIMINATORY

16 TREATMENT.—The extension of nondiscriminatory treat17 ment to the products of the Russian Federation pursuant 

18 to subsection (a) shall be effective not sooner than the ef19 fective date of the accession of the Russian Federation to 

20 the World Trade Organization. 

21 (c) TERMINATION OF APPLICABILITY OF TITLE

22 IV.—On and after the effective date under subsection (b) 

23 of the extension of nondiscriminatory treatment to the 

24 products of the Russian Federation, title IV of the Trade 

25 Act of 1974 (19 U.S.C. 2431 et seq.) shall cease to apply 

26 to the Russian Federation. 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•S 3406 PCS

1 TITLE II—TRADE ENFORCEMENT 

2 MEASURES RELATING TO THE 

3 RUSSIAN FEDERATION 

4 SEC. 201. REPORTS ON IMPLEMENTATION BY THE RUSSIAN 

5 FEDERATION OF OBLIGATIONS AS A MEMBER 

6 OF THE WORLD TRADE ORGANIZATION AND 

7 ENFORCEMENT ACTIONS BY THE UNITED 

8 STATES TRADE REPRESENTATIVE. 

9 (a) REPORTS ON IMPLEMENTATION.— 

10 (1) IN GENERAL.—Not later than one year 

11 after the effective date under section 102(b) of the 

12 extension of nondiscriminatory treatment to the 

13 products of the Russian Federation, and annually 

14 thereafter, the United States Trade Representative 

15 shall submit to the Committee on Finance of the 

16 Senate and the Committee on Ways and Means of 

17 the House of Representatives a report assessing the 

18 following: 

19 (A) The extent to which the Russian Fed20 eration is implementing the WTO Agreement 

21 (as defined in section 2 of the Uruguay Round 

22 Agreements Act (19 U.S.C. 3501)) and the fol23 lowing agreements annexed to that Agreement: 

24 (i) The Agreement on the Application 

25 of Sanitary and Phytosanitary Measures 

mstockstill on DSK4VPTVN1PROD with BILLS

6 

•S 3406 PCS

1 (referred to in section 101(d)(3) of the 

2 Uruguay Round Agreements Act (19 

3 U.S.C. 3511(d)(3))). 

4 (ii) The Agreement on Trade-Related 

5 Aspects of Intellectual Property Rights (re6 ferred to in section 101(d)(15) of the Uru7 guay Round Agreements Act (19 U.S.C. 

8 3511(d)(15))). 

9 (B) The progress made by the Russian 

10 Federation in acceding to, and the extent to 

11 which the Russian Federation is implementing, 

12 the following: 

13 (i) The Ministerial Declaration on 

14 Trade in Information Technology Products 

15 of the World Trade Organization, agreed 

16 to at Singapore December 13, 1996 (com17 monly referred to as the ‘‘Information 

18 Technology Agreement’’) (or a successor 

19 agreement). 

20 (ii) The Agreement on Government 

21 Procurement (referred to in section 

22 101(d)(17) of the Uruguay Round Agree23 ments Act (19 U.S.C. 3511(d)(17))). 

24 (2) PLAN FOR ACTION BY TRADE REPRESENTA25 TIVE.— 

mstockstill on DSK4VPTVN1PROD with BILLS

7 

•S 3406 PCS

1 (A) IN GENERAL.—If, in preparing a re2 port required by paragraph (1), the Trade Rep3 resentative believes that the Russian Federation 

4 is not fully implementing an agreement speci5 fied in subparagraph (A) or (B) of that para6 graph or that the Russian Federation is not 

7 making adequate progress in acceding to an 

8 agreement specified in subparagraph (B) of 

9 that paragraph, the Trade Representative shall, 

10 except as provided in subparagraph (B) of this 

11 paragraph, include in the report a description 

12 of the actions the Trade Representative plans to 

13 take to encourage the Russian Federation to 

14 improve its implementation of the agreement or 

15 increase its progress in acceding to the agree16 ment, as the case may be. 

17 (B) CLASSIFIED INFORMATION.—If any in18 formation regarding a planned action referred 

19 to in subparagraph (A) is classifiable under Ex20 ecutive Order 13526 (75 Fed. Reg. 707; relat21 ing to classified national security information) 

22 or a subsequent executive order, the Trade Rep23 resentative shall report that information to the 

24 Committee on Finance of the Senate and the 

mstockstill on DSK4VPTVN1PROD with BILLS

8 

•S 3406 PCS

1 Committee on Ways and Means of the House of 

2 Representatives by— 

3 (i) including the information in a clas4 sified annex to the report required by para5 graph (1); or 

6 (ii) consulting with the Committee on 

7 Finance and the Committee on Ways and 

8 Means with respect to the information in9 stead of including the information in the 

10 report or a classified annex to the report. 

11 (3) PUBLIC COMMENTS.— 

12 (A) IN GENERAL.—In developing the re13 port required by paragraph (1), the Trade Rep14 resentative shall provide an opportunity for the 

15 public to comment, including by holding a pub16 lic hearing. 

17 (B) PUBLICATION IN FEDERAL REG18 ISTER.—The Trade Representative shall publish 

19 notice of the opportunity to comment and hear20 ing required by subparagraph (A) in the Fed21 eral Register. 

22 (b) REPORT ON ENFORCEMENT ACTIONS TAKEN BY

23 TRADE REPRESENTATIVE.—Not later than 180 days after 

24 the effective date under section 102(b) of the extension 

25 of nondiscriminatory treatment to the products of the 

mstockstill on DSK4VPTVN1PROD with BILLS

9 

•S 3406 PCS

1 Russian Federation, and annually thereafter, the United 

2 States Trade Representative shall submit to the Com3 mittee on Finance of the Senate and the Committee on 

4 Ways and Means of the House of Representatives a report 

5 describing the enforcement actions taken by the Trade 

6 Representative against the Russian Federation to ensure 

7 the full compliance of the Russian Federation with its obli8 gations as a member of the World Trade Organization, 

9 including obligations under agreements with members of 

10 the Working Party on the accession of the Russian Fed11 eration to the World Trade Organization. 

12 SEC. 202. PROMOTION OF THE RULE OF LAW IN THE RUS13 SIAN FEDERATION TO SUPPORT UNITED 

14 STATES TRADE AND INVESTMENT. 

15 (a) REPORTS ON PROMOTION OF RULE OF LAW.— 

16 Not later than one year after the effective date under sec17 tion 102(b) of the extension of nondiscriminatory treat18 ment to the products of the Russian Federation, and an19 nually thereafter, the United States Trade Representative 

20 and the Secretary of State shall jointly submit to the Com21 mittee on Finance of the Senate and the Committee on 

22 Ways and Means of the House of Representatives a re23 port— 

24 (1) on the measures taken by the Trade Rep25 resentative and the Secretary and the results 

mstockstill on DSK4VPTVN1PROD with BILLS

10 

•S 3406 PCS

1 achieved during the year preceding the submission of 

2 the report with respect to promoting the rule of law 

3 in the Russian Federation, including with respect 

4 to— 

5 (A) strengthening formal protections for 

6 United States investors in the Russian Federa7 tion, including through the negotiation of a new 

8 bilateral investment treaty; 

9 (B) advocating for United States investors 

10 in the Russian Federation, including by pro11 moting the claims of United States investors in 

12 Yukos Oil Company; 

13 (C) encouraging all countries that are par14 ties to the Convention on Combating Bribery of 

15 Foreign Public Officials in International Busi16 ness Transactions of the Organisation for Eco17 nomic Co-operation and Development, done at 

18 Paris December 17, 1997 (commonly referred 

19 to as the ‘‘OECD Anti-Bribery Convention’’), 

20 including the Russian Federation, to fully im21 plement their commitments under the Conven22 tion to prevent overseas business bribery by the 

23 nationals of those countries; 

mstockstill on DSK4VPTVN1PROD with BILLS

11 

•S 3406 PCS

1 (D) promoting a customs administration, 

2 tax administration, and judiciary in the Russia 

3 Federation that are free of corruption; and 

4 (E) increasing cooperation between the 

5 United States and the Russian Federation to 

6 expand the capacity for civil society organiza7 tions to monitor, investigate, and report on sus8 pected instances of corruption; and 

9 (2) that discloses the status of any pending pe10 tition for espousal filed with the Secretary by a 

11 United States investor in the Russian Federation. 

12 (b) ANTI-BRIBERY REPORTING AND ASSISTANCE.— 

13 (1) IN GENERAL.—The Secretary of Commerce 

14 shall establish and maintain a dedicated phone hot15 line and secure website, accessible from within and 

16 outside the Russian Federation, for the purpose of 

17 allowing United States entities— 

18 (A) to report instances of bribery, at19 tempted bribery, or other forms of corruption in 

20 the Russian Federation that impact or poten21 tially impact their operations; and 

22 (B) to request the assistance of the United 

23 States with respect to issues relating to corrup24 tion in the Russian Federation. 

25 (2) REPORT REQUIRED.— 

mstockstill on DSK4VPTVN1PROD with BILLS

12 

•S 3406 PCS

1 (A) IN GENERAL.—Not later than one year 

2 after the effective date under section 102(b) of 

3 the extension of nondiscriminatory treatment to 

4 the products of the Russian Federation, and 

5 annually thereafter, the Secretary of Commerce 

6 shall submit to the Committee on Finance of 

7 the Senate and the Committee on Ways and 

8 Means of the House of Representatives a report 

9 that includes the following: 

10 (i) The number of instances in which 

11 bribery, attempted bribery, or other forms 

12 of corruption have been reported using the 

13 hotline or website established pursuant to 

14 paragraph (1). 

15 (ii) A description of the regions in the 

16 Russian Federation in which those in17 stances are alleged to have occurred. 

18 (iii) A summary of actions taken by 

19 the United States to provide assistance to 

20 United States entities pursuant to para21 graph (1)(B). 

22 (iv) A description of the efforts taken 

23 by the Secretary to inform United States 

24 entities conducting business in the Russian 

25 Federation or considering conducting busimstockstill on DSK4VPTVN1PROD with BILLS

13 

•S 3406 PCS

1 ness in the Russian Federation of the 

2 availability of assistance through the hot3 line and website. 

4 (B) CONFIDENTIALITY.—The Secretary 

5 shall not include in the report required by sub6 paragraph (A) the identity of a United States 

7 entity that reports instances of bribery, at8 tempted bribery, or other forms of corruption in 

9 the Russian Federation or requests assistance 

10 pursuant to paragraph (1). 

11 SEC. 203. REPORTS ON LAWS, POLICIES, AND PRACTICES 

12 OF THE RUSSIAN FEDERATION THAT DIS13 CRIMINATE AGAINST UNITED STATES DIG14 ITAL TRADE. 

15 Section 181(a) of the Trade Act of 1974 (19 U.S.C. 

16 2241(a)) is amended— 

17 (1) by redesignating paragraph (3) as para18 graph (4); and 

19 (2) by inserting after paragraph (2) the fol20 lowing: 

21 ‘‘(3) INCLUSION OF CERTAIN DISCRIMINATORY

22 LAWS, POLICIES, AND PRACTICES OF THE RUSSIAN

23 FEDERATION.—For calender year 2012 and each 

24 succeeding calendar year, the Trade Representative 

25 shall include in the analyses and estimates under 

mstockstill on DSK4VPTVN1PROD with BILLS

14 

•S 3406 PCS

1 paragraph (1) an identification and analysis of any 

2 laws, policies, or practices of the Russian Federation 

3 that deny fair and equitable market access to United 

4 States digital trade.’’. 

5 SEC. 204. EFFORTS TO REDUCE BARRIERS TO TRADE IM6 POSED BY THE RUSSIAN FEDERATION. 

7 The United States Trade Representative shall con8 tinue to pursue the reduction of barriers to trade imposed 

9 by the Russian Federation on articles exported from the 

10 United States to the Russian Federation through ef11 forts— 

12 (1) to negotiate a bilateral agreement under 

13 which the Russian Federation will accept the sani14 tary and phytosanitary measures of the United 

15 States as equivalent to the sanitary and 

16 phytosanitary measures of the Russian Federation; 

17 and 

18 (2) to obtain the adoption by the Russian Fed19 eration of an action plan for providing greater pro20 tections for intellectual property rights than the pro21 tections required by the Agreement on Trade-Re22 lated Aspects of Intellectual Property Rights (re23 ferred to in section 101(d)(15) of the Uruguay 

24 Round Agreements Act (19 U.S.C. 3511(d)(15))). 

mstockstill on DSK4VPTVN1PROD with BILLS

15 

•S 3406 PCS

1 TITLE III—SANCTIONS WITH RE2 SPECT TO PERSONS RESPON3 SIBLE FOR GROSS VIOLA4 TIONS OF HUMAN RIGHTS 

5 SEC. 301. SHORT TITLE. 

6 This title may be cited as the ‘‘Sergei Magnitsky Rule 

7 of Law Accountability Act of 2012’’. 

8 SEC. 302. FINDINGS. 

9 Congress finds the following: 

10 (1) The United States supports the people of 

11 the Russian Federation in their efforts to realize 

12 their full economic potential and to advance democ13 racy, human rights, and the rule of law. 

14 (2) The Russian Federation— 

15 (A) is a member of the United Nations, 

16 the Organization for Security and Co-operation 

17 in Europe, the Council of Europe, and the 

18 International Monetary Fund; and 

19 (B) is a party to the Convention against 

20 Torture and Other Cruel, Inhuman or Degrad21 ing Treatment or Punishment, the International 

22 Covenant on Civil and Political Rights, the 

23 United Nations Convention against Corruption, 

24 and the European Convention on Human 

25 Rights. 

mstockstill on DSK4VPTVN1PROD with BILLS

16 

•S 3406 PCS

1 (3) In becoming parties to human rights trea2 ties, governments voluntarily undertake international 

3 obligations to respect and encourage certain funda4 mental rights and freedoms of their citizens. The 

5 protection and encouragement of human rights 

6 throughout the world is an important objective of 

7 United States foreign policy. 

8 (4) Good governance and anti-corruption meas9 ures are instrumental in the protection of human 

10 rights and in achieving sustainable economic growth, 

11 which benefits both the people of the Russian Fed12 eration and the international community through the 

13 creation of open and transparent markets. 

14 (5) Systemic corruption erodes trust and con15 fidence in democratic institutions, the rule of law, 

16 and human rights protections. This is the case when 

17 public officials are allowed to abuse their authority 

18 with impunity for political or financial gains in collu19 sion with private entities. 

20 (6) The Russian nongovernmental organization 

21 INDEM has estimated that corruption amounts to 

22 hundreds of billions of dollars a year, an increasing 

23 share of the gross domestic product of the Russian 

24 Federation. 

mstockstill on DSK4VPTVN1PROD with BILLS

17 

•S 3406 PCS

1 (7) The President of the Russian Federation, 

2 Dmitry Medvedev, has addressed corruption in many 

3 public speeches, including stating in his 2009 ad4 dress to Russia’s Federal Assembly, ‘‘[Z]ero toler5 ance of corruption should become part of our na6 tional culture. . . . In Russia we often say that there 

7 are few cases in which corrupt officials are pros8 ecuted. . . . [S]imply incarcerating a few will not re9 solve the problem. But incarcerated they must be.’’. 

10 President Medvedev went on to say, ‘‘We shall over11 come underdevelopment and corruption because we 

12 are a strong and free people, and deserve a normal 

13 life in a modern, prosperous democratic society.’’. 

14 Furthermore, President Medvedev has acknowledged 

15 Russia’s disregard for the rule of law and used the 

16 term ‘‘legal nihilism’’ to describe a criminal justice 

17 system that continues to imprison innocent people. 

18 (8) In light of the importance of legitimate and 

19 transparent public institutions and the serious nega20 tive effects that corruption has on the efforts of the 

21 United States to strengthen democratic institutions 

22 and free market systems, Presidential Proclamation 

23 7750 of January 12, 2004, allows the Secretary of 

24 State to suspend the entry into the United States of 

mstockstill on DSK4VPTVN1PROD with BILLS

18 

•S 3406 PCS

1 aliens who are suspected of participating in corrupt 

2 practices. 

3 (9) The systematic abuse of Sergei Magnitsky, 

4 including his repressive arrest and torture in custody 

5 by the same officers of the Ministry of the Interior 

6 of the Russian Federation that Mr. Magnitsky had 

7 implicated in the embezzlement of funds from the 

8 Russian Treasury and the misappropriation of 3 

9 companies from his client, Hermitage, reflects how 

10 deeply the protection of human rights is affected by 

11 corruption. 

12 (10) The politically motivated nature of the per13 secution of Mr. Magnitsky is demonstrated by— 

14 (A) the denial by all state bodies of the 

15 Russian Federation of any justice or legal rem16 edies to Mr. Magnitsky during the nearly 12 

17 full months he was kept without trial in deten18 tion; and 

19 (B) the impunity of state officials he testi20 fied against for their involvement in corruption 

21 and the carrying out of his repressive persecu22 tion since his death. 

23 (11) Mr. Magnitsky died on November 16, 

24 2009, at the age of 37, in Matrosskaya Tishina Prismstockstill on DSK4VPTVN1PROD with BILLS

19 

•S 3406 PCS

1 on in Moscow, Russia, and is survived by a mother, 

2 a wife, and 2 sons. 

3 (12) The Public Oversight Commission of the 

4 City of Moscow for the Control of the Observance of 

5 Human Rights in Places of Forced Detention, an or6 ganization empowered by Russian law to independ7 ently monitor prison conditions, concluded, ‘‘A man 

8 who is kept in custody and is being detained is not 

9 capable of using all the necessary means to protect 

10 either his life or his health. This is a responsibility 

11 of a state which holds him captive. Therefore, the 

12 case of Sergei Magnitsky can be described as a 

13 breach of the right to life. The members of the civic 

14 supervisory commission have reached the conclusion 

15 that Magnitsky had been experiencing both psycho16 logical and physical pressure in custody, and the 

17 conditions in some of the wards of Butyrka can be 

18 justifiably called torturous. The people responsible 

19 for this must be punished.’’. 

20 (13) On July 6, 2011, President Medvedev’s 

21 Human Rights Council announced the results of its 

22 independent investigation into the death of Sergei 

23 Magnitsky. The Human Rights Council concluded 

24 that Sergei Magnitsy’s arrest and detention was ille25 gal, he was denied access to justice by the courts 

mstockstill on DSK4VPTVN1PROD with BILLS

20 

•S 3406 PCS

1 and prosecutors of the Russian Federation, he was 

2 investigated by the same law enforcement officers 

3 whom he had accused of stealing Hermitage Fund 

4 companies and illegally obtaining a fraudulent 

5 $230,000,000 tax refund, he was denied necessary 

6 medical care in custody, he was beaten by 8 guards 

7 with rubber batons on the last day of his life, and 

8 the ambulance crew that was called to treat him as 

9 he was dying was deliberately kept outside of his cell 

10 for one hour and 18 minutes until he was dead. The 

11 report of the Human Rights Council also states the 

12 officials falsified their accounts of what happened to 

13 Sergei Magnitsky and, 18 months after his death, no 

14 officials had been brought to trial for his false arrest 

15 or the crime he uncovered. 

16 (14) The second trial, verdict, and sentence 

17 against former Yukos executives Mikhail 

18 Khodorkovsky and Platon Lebedev evoke serious 

19 concerns about the right to a fair trial and the inde20 pendence of the judiciary in the Russian Federation. 

21 The lack of credible charges, intimidation of wit22 nesses, violations of due process and procedural 

23 norms, falsification or withholding of documents, de24 nial of attorney-client privilege, and illegal detention 

25 in the Yukos case are highly troubling. The Council 

mstockstill on DSK4VPTVN1PROD with BILLS

21 

•S 3406 PCS

1 of Europe, Freedom House, and Amnesty Inter2 national, among others, have concluded that they 

3 were charged and imprisoned in a process that did 

4 not follow the rule of law and was politically influ5 enced. Furthermore, senior officials of the Govern6 ment of the Russian Federation have acknowledged 

7 that the arrest and imprisonment of Khodorkovsky 

8 were politically motivated. 

9 (15) According to Freedom House’s 2011 re10 port entitled ‘‘The Perpetual Battle: Corruption in 

11 the Former Soviet Union and the New EU Mem12 bers’’, ‘‘[t]he highly publicized cases of Sergei 

13 Magnitsky, a 37-year-old lawyer who died in pretrial 

14 detention in November 2009 after exposing a multi15 million-dollar fraud against the Russian taxpayer, 

16 and Mikhail Khodorkovsky, the jailed business mag17 nate and regime critic who was sentenced at the end 

18 of 2010 to remain in prison through 2017, put an 

19 international spotlight on the Russian state’s con20 tempt for the rule of law. . . . By silencing influen21 tial and accomplished figures such as Khodorkovsky 

22 and Magnitsky, the Russian authorities have made 

23 it abundantly clear that anyone in Russia can be si24 lenced.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

22 

•S 3406 PCS

1 (16) Sergei Magnitsky’s experience, while par2 ticularly illustrative of the negative effects of official 

3 corruption on the rights of an individual citizen, ap4 pears to be emblematic of a broader pattern of dis5 regard for the numerous domestic and international 

6 human rights commitments of the Russian Federa7 tion and impunity for those who violate basic human 

8 rights and freedoms. 

9 (17) The tragic and unresolved murders of 

10 Nustap Abdurakhmanov, Maksharip Aushev, 

11 Natalya Estemirova, Akhmed Hadjimagomedov, 

12 Umar Israilov, Paul Klebnikov, Anna Politkovskaya, 

13 Saihadji Saihadjiev, and Magomed Y. Yevloyev, the 

14 death in custody of Vera Trifonova, the disappear15 ances of Mokhmadsalakh Masaev and Said-Saleh 

16 Ibragimov, the torture of Ali Israilov and Islam 

17 Umarpashaev, the near-fatal beatings of Mikhail 

18 Beketov, Oleg Kashin, Arkadiy Lander, and Mikhail 

19 Vinyukov, and the harsh and ongoing imprisonment 

20 of Mikhail Khodorkovsky, Alexei Kozlov, Platon 

21 Lebedev, and Fyodor Mikheev further illustrate the 

22 grave danger of exposing the wrongdoing of officials 

23 of the Government of the Russian Federation, in24 cluding Chechen President Ramzan Kadyrov, or of 

mstockstill on DSK4VPTVN1PROD with BILLS

23 

•S 3406 PCS

1 seeking to obtain, exercise, defend, or promote inter2 nationally recognized human rights and freedoms. 

3 (18) The people of the Russian Federation, like 

4 people everywhere, deserve to have their human 

5 rights and fundamental freedoms respected. Human 

6 rights and fundamental freedoms are inalienable and 

7 universal in character and thus bind all states. 

8 SEC. 303. DEFINITIONS. 

9 In this title: 

10 (1) ADMITTED; ALIEN.—The terms ‘‘admitted’’ 

11 and ‘‘alien’’ have the meanings given those terms in 

12 section 101 of the Immigration and Nationality Act 

13 (8 U.S.C. 1101). 

14 (2) APPROPRIATE CONGRESSIONAL COMMIT15 TEES.—The term ‘‘appropriate congressional com16 mittees’’ means— 

17 (A) the Committee on Armed Services, the 

18 Committee on Financial Services, the Com19 mittee on Foreign Affairs, the Committee on 

20 Homeland Security, and the Committee on the 

21 Judiciary of the House of Representatives; and 

22 (B) the Committee on Armed Services, the 

23 Committee on Banking, Housing, and Urban 

24 Affairs, the Committee on Foreign Relations, 

25 the Committee on Homeland Security and Govmstockstill on DSK4VPTVN1PROD with BILLS

24 

•S 3406 PCS

1 ernmental Affairs, and the Committee on the 

2 Judiciary of the Senate. 

3 (3) FINANCIAL INSTITUTION.—The term ‘‘fi4 nancial institution’’ has the meaning given that term 

5 in section 5312 of title 31, United States Code. 

6 (4) UNITED STATES PERSON.—The term 

7 ‘‘United States person’’ means— 

8 (A) a United States citizen or an alien law9 fully admitted for permanent residence to the 

10 United States; or 

11 (B) an entity organized under the laws of 

12 the United States or of any jurisdiction within 

13 the United States, including a foreign branch of 

14 such an entity. 

15 SEC. 304. IDENTIFICATION OF PERSONS RESPONSIBLE FOR 

16 THE DETENTION, ABUSE, AND DEATH OF 

17 SERGEI MAGNITSKY AND OTHER GROSS VIO18 LATIONS OF HUMAN RIGHTS. 

19 (a) IN GENERAL.—Not later than 120 days after the 

20 date of the enactment of this Act, the Secretary of State, 

21 in consultation with the Secretary of the Treasury, shall 

22 submit to the appropriate congressional committees a list 

23 of each person the Secretary of State determines— 

24 (1)(A) is responsible for the detention, abuse, 

25 or death of Sergei Magnitsky; 

mstockstill on DSK4VPTVN1PROD with BILLS

25 

•S 3406 PCS

1 (B) participated in efforts to conceal the legal 

2 liability for the detention, abuse, or death of Sergei 

3 Magnitsky; 

4 (C) benefitted financially from the detention, 

5 abuse, or death of Sergei Magnitsky; or 

6 (D) was involved in the criminal conspiracy un7 covered by Sergei Magnitsky; 

8 (2) is responsible for extrajudicial killings, tor9 ture, or other gross violations of internationally rec10 ognized human rights committed against individuals 

11 seeking— 

12 (A) to expose illegal activity carried out by 

13 officials of the Government of the Russian Fed14 eration; or 

15 (B) to obtain, exercise, defend, or promote 

16 internationally recognized human rights and 

17 freedoms, such as the freedoms of religion, ex18 pression, association, and assembly and the 

19 rights to a fair trial and democratic elections, 

20 anywhere in the world; or 

21 (3) acted as an agent of or on behalf of a per22 son in a matter relating to an activity described in 

23 paragraph (1) or (2). 

mstockstill on DSK4VPTVN1PROD with BILLS

26 

•S 3406 PCS

1 (b) UPDATES.—The Secretary of State shall update 

2 the list required by subsection (a) as new information be3 comes available. 

4 (c) REMOVAL FROM LIST.—A person shall be re5 moved from the list required by subsection (a) if the Sec6 retary of State determines that the person did not engage 

7 in the activity for which the person was added to the list. 

8 (d) FORM OF LIST; PUBLIC AVAILABILITY.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the list required by subsection (a) shall 

11 be submitted in unclassified form. 

12 (2) CLASSIFIED ANNEX.—The list required by 

13 subsection (a) may include a classified annex if the 

14 Secretary of State— 

15 (A) determines that it is necessary for the 

16 national security interests of the United States 

17 to do so; and 

18 (B) prior to submitting the list including a 

19 classified annex, provides to the appropriate 

20 congressional committees notice of, and a jus21 tification for, including each person in the clas22 sified annex. 

23 (3) REVIEW OF CLASSIFIED ANNEX.—Not later 

24 than 300 days after the date of the enactment of 

mstockstill on DSK4VPTVN1PROD with BILLS

27 

•S 3406 PCS

1 this Act, and annually thereafter, the Secretary 

2 shall— 

3 (A) review the classified annex, if any, in4 cluded in the list required by subsection (a); 

5 and 

6 (B) provide to the appropriate congres7 sional committees a justification for continuing 

8 to include each person in the classified annex. 

9 (4) PUBLIC AVAILABILITY OF UNCLASSIFIED

10 PORTION.—The unclassified portion of the list re11 quired by subsection (a) shall be published in the 

12 Federal Register. 

13 (e) REQUESTS BY CHAIRPERSON AND RANKING

14 MEMBER OF APPROPRIATE CONGRESSIONAL COMMIT15 TEES.— 

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

17 after receiving a written request from the chair18 person and the ranking member of one of the appro19 priate congressional committees with respect to 

20 whether a person meets the criteria for being added 

21 to the list required by subsection (a), the Secretary 

22 of State shall submit a response to the committee 

23 the chairperson and ranking member of which made 

24 the request with respect to whether or not the Secmstockstill on DSK4VPTVN1PROD with BILLS

28 

•S 3406 PCS

1 retary determines that the person meets those cri2 teria. 

3 (2) FORM.—The Secretary of State may submit 

4 a response required by paragraph (1) in classified 

5 form if the Secretary determines that it is necessary 

6 for the national security interests of the United 

7 States to do so. 

8 (f) NONAPPLICABILITY OF CONFIDENTIALITY RE9 QUIREMENT WITH RESPECT TO VISA RECORDS.—The 

10 Secretary of State shall publish the list required by sub11 section (a) without regard to the requirements of section 

12 222(f) of the Immigration and Nationality Act (8 U.S.C. 

13 1202(f)) with respect to confidentiality of records per14 taining to the issuance or refusal of visas or permits to 

15 enter the United States. 

16 SEC. 305. INADMISSIBILITY OF CERTAIN ALIENS. 

17 (a) INELIGIBILITY FOR VISAS.—An alien is ineligible 

18 to receive a visa to enter the United States and ineligible 

19 to be admitted to the United States if the alien is on the 

20 list required by section 304(a). 

21 (b) CURRENT VISAS REVOKED.—The Secretary of 

22 State shall revoke, in accordance with section 221(i) of 

23 the Immigration and Nationality Act (8 U.S.C. 1201(i)), 

24 the visa or other documentation of any alien who would 

mstockstill on DSK4VPTVN1PROD with BILLS

29 

•S 3406 PCS

1 be ineligible to receive such a visa or documentation under 

2 subsection (a). 

3 (c) WAIVER FOR NATIONAL SECURITY INTERESTS.— 

4 The Secretary of State may waive the application of sub5 section (a) or (b) in the case of an alien if— 

6 (1) the Secretary determines that such a waiv7 er— 

8 (A) is necessary to permit the United 

9 States to comply with the Agreement between 

10 the United Nations and the United States of 

11 America regarding the Headquarters of the 

12 United Nations, signed June 26, 1947, and en13 tered into force November 21, 1947; or 

14 (B) is in the national security interests of 

15 the United States; and 

16 (2) prior to granting such a waiver, the Sec17 retary provides to the appropriate congressional 

18 committees notice of, and a justification for, the 

19 waiver. 

20 SEC. 306. FINANCIAL MEASURES. 

21 (a) FREEZING OF ASSETS.—The Secretary of the 

22 Treasury shall, pursuant to the International Emergency 

23 Economic Powers Act (50 U.S.C. 1701 et seq.), freeze and 

24 prohibit all transactions in all property and interests in 

25 property of a person that the Secretary, in consultation 

mstockstill on DSK4VPTVN1PROD with BILLS

30 

•S 3406 PCS

1 with the Secretary of State, determines has engaged in 

2 an activity described in paragraph (1), (2), or (3) of sec3 tion 304(a) if such property and interests in property are 

4 in the United States, come within the United States, or 

5 are or come within the possession or control of a United 

6 States person. 

7 (b) WAIVER FOR NATIONAL SECURITY INTERESTS.— 

8 The Secretary of the Treasury may waive the application 

9 of subsection (a) if the Secretary determines that such a 

10 waiver is in the national security interests of the United 

11 States. Prior to granting such a waiver, the Secretary 

12 shall provide to the appropriate congressional committees 

13 notice of, and a justification for, the waiver. 

14 SEC. 307. REPORT TO CONGRESS. 

15 Not later than 1 year after the date of the enactment 

16 of this Act, and annually thereafter, the Secretary of State 

17 and the Secretary of the Treasury shall submit to the ap18 propriate congressional committees a report on— 

19 (1) the actions taken to carry out this title, in20 cluding— 

21 (A) the number of times and the cir22 cumstances in which persons described in sec23 tion 304(a) have been added to the list required 

24 by that section during the year preceding the 

25 report; and 

mstockstill on DSK4VPTVN1PROD with BILLS

31 

•S 3406 PCS

1 (B) if few or no such persons have been 

2 added to that list during that year, the reasons 

3 for not adding more such persons to the list; 

4 and 

5 (2) efforts to encourage the governments of 

6 other countries to impose sanctions that are similar 

7 to the sanctions imposed under this title. 

8 TITLE IV—PERMANENT NORMAL 

9 TRADE RELATIONS FOR 

10 MOLDOVA 

11 SEC. 401. FINDINGS. 

12 Congress finds the following: 

13 (1) Moldova allows its citizens the right and op14 portunity to emigrate, free of any heavy tax on emi15 gration or on the visas or other documents required 

16 for emigration and free of any tax, levy, fine, fee, or 

17 other charge on any citizens as a consequence of the 

18 desire of those citizens to emigrate to the country of 

19 their choice. 

20 (2) Moldova has been found to be in full com21 pliance with the freedom of emigration requirements 

22 under title IV of the Trade Act of 1974 (19 U.S.C. 

23 2431 et seq.) since 1997. 

24 (3) Moldova acceded to the World Trade Orga25 nization on July 26, 2001. 

mstockstill on DSK4VPTVN1PROD with BILLS

32 

•S 3406 PCS

1 SEC. 402. TERMINATION OF APPLICATION OF TITLE IV OF 

2 THE TRADE ACT OF 1974 TO PRODUCTS OF 

3 MOLDOVA. 

4 (a) PRESIDENTIAL DETERMINATIONS AND EXTEN5 SION OF NONDISCRIMINATORY TREATMENT.—Notwith6 standing any provision of title IV of the Trade Act of 1974 

7 (19 U.S.C. 2431 et seq.), the President may— 

8 (1) determine that such title should no longer 

9 apply to Moldova; and 

10 (2) after making a determination under para11 graph (1) with respect to Moldova, proclaim the ex12 tension of nondiscriminatory treatment (normal 

13 trade relations treatment) to the products of 

14 Moldova. 

15 (b) TERMINATION OF APPLICABILITY OF TITLE

16 IV.—On and after the date on which the President ex17 tends nondiscriminatory treatment to the products of 

18 Moldova pursuant to subsection (a), title IV of the Trade 

19 Act of 1974 (19 U.S.C. 2431 et seq.) shall cease to apply 

20 to Moldova. 

mstockstill on DSK4VPTVN1PROD with BILLS

mstockstill on DSK4VPTVN1PROD with BILLS

Calendar No. 461 

112TH CONGRESS 

2D SESSION S. 3406 

A BILL 

To authorize the extension of nondiscriminatory 

tions of human rights, and for other purposes. sanctions on persons responsible for gross violaof the World Trade Organization, and to impose sian Federation with its obligations as a member to require reports on the compliance of the Rusproducts of the Russian Federation and Moldova, treatment (normal trade relations treatment) to 

JULY 19, 2012 

Read twice and placed on the calendar 

mstockstill on DSK4VPTVN1PROD with BILLS