II 

116TH CONGRESS 

1ST SESSION S. 1441 

To impose sanctions with respect to the provision of certain vessels for 

the construction of Russian energy export pipelines, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 14, 2019 

Mr. CRUZ (for himself, Mrs. SHAHEEN, Mr. BARRASSO, and Mr. COTTON) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To impose sanctions with respect to the provision of certain 

vessels for the construction of Russian energy export 

pipelines, 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. 

4 This Act may be cited as the ‘‘Protecting Europe’s 

5 Energy Security Act of 2019’’. 

6 SEC. 2. SENSE OF CONGRESS. 

7 It is the sense of Congress that— 

8 (1) the United States and Europe share a com9 mon history, a common identity, and common values 


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1 built upon the principles of democracy, rule of law, 

2 and individual freedoms; 

3 (2) the United States has encouraged and ad4 mired the European project, which has resulted in a 

5 common market and common policies, has achieved 

6 unprecedented prosperity and stability on the con7 tinent, and serves as a model for other countries to 

8 reform their institutions and prioritize 

9 anticorruption measures; 

10 (3) the relationships between the United States 

11 and Europe and the United States and Germany are 

12 critical to the national security interests of the 

13 United States as well as to global prosperity and 

14 peace, and Germany in particular is a crucial part15 ner for the United States in multilateral efforts 

16 aimed at promoting global prosperity and peace; 

17 (4) the United States should stand against any 

18 effort designed to weaken those relationships; and 

19 (5) Germany has demonstrated leadership with20 in the European Union and in international fora to 

21 ensure that sanctions imposed with respect to the 

22 Russian Federation for its malign activities are 

23 maintained. 


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1 SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO PRO2 VISION OF CERTAIN VESSELS FOR THE CON3 STRUCTION OF RUSSIAN ENERGY EXPORT 

4 PIPELINES. 

5 (a) REPORT REQUIRED.—Not later than 60 days 

6 after the date of the enactment of this Act, and every 90 

7 days thereafter, the Secretary of State shall submit to the 

8 appropriate congressional committees a report that identi9 fies, for the period beginning on the date of the enactment 

10 of this Act and ending on the date of the report— 

11 (1) vessels that engaged in pipe-laying at 

12 depths of 100 feet or more below sea level for the 

13 construction of Russian energy export pipelines; and 

14 (2) foreign persons that have sold, leased, pro15 vided, or facilitated the provision of those vessels for 

16 the construction of such pipelines. 

17 (b) INADMISSIBILITY TO UNITED STATES OF IDENTI18 FIED PERSONS AND CORPORATE OFFICERS.—The Sec19 retary of State shall deny a visa to, and the Secretary of 

20 Homeland Security shall exclude from the United States 

21 of, any alien who is— 

22 (1) a foreign person identified under subsection 

23 (a)(2); 

24 (2) a corporate officer of a person described in 

25 paragraph (1); or 


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1 (3) a principal shareholder with a controlling 

2 interest in a person described in paragraph (1). 

3 (c) BLOCKING OF PROPERTY OF IDENTIFIED PER4 SONS.—The President shall exercise all powers granted to 

5 the President by the International Emergency Economic 

6 Powers Act (50 U.S.C. 1701 et seq.) to the extent nec7 essary to block and prohibit all transactions in all property 

8 and interests in property of any person identified under 

9 subsection (a)(2) if such property and interests in prop10 erty are in the United States, come within the United 

11 States, or are or come within the possession or control 

12 of a United States person. 

13 (d) SANCTIONS FOR PROVISION OF UNDERWRITING

14 SERVICES OR INSURANCE OR REINSURANCE FOR IDENTI15 FIED VESSELS.— 

16 (1) IN GENERAL.—The President may impose 5 

17 or more of the sanctions described in paragraph (2) 

18 with respect to a foreign person if the President de19 termines that the person knowingly, on or after the 

20 date of the enactment of this Act, provides under21 writing services or insurance or reinsurance for a 

22 vessel identified under subsection (a)(1). 

23 (2) SANCTIONS DESCRIBED.—The sanctions 

24 that may be imposed with respect to a foreign per25 son under paragraph (1) are the following: 


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1 (A) EXPORT-IMPORT BANK ASSISTANCE

2 FOR EXPORTS TO SANCTIONED PERSONS.—The 

3 President may direct the Export-Import Bank 

4 of the United States not to give approval to the 

5 issuance of any guarantee, insurance, extension 

6 of credit, or participation in the extension of 

7 credit in connection with the export of any 

8 goods or services to the foreign person. 

9 (B) EXPORT SANCTION.—The President 

10 may order the United States Government not to 

11 issue any specific license and not to grant any 

12 other specific permission or authority to export 

13 any goods or technology to the foreign person 

14 under— 

15 (i) the Export Control Reform Act of 

16 2018 (50 U.S.C. 4801 et seq.); 

17 (ii) the Arms Export Control Act (22 

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

19 (iii) the Atomic Energy Act of 1954 

20 (42 U.S.C. 2011 et seq.); or 

21 (iv) any other statute that requires 

22 the prior review and approval of the 

23 United States Government as a condition 

24 for the export or reexport of goods or serv25 ices. 


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1 (C) LOANS FROM UNITED STATES FINAN2 CIAL INSTITUTIONS.—The United States Gov3 ernment may prohibit any United States finan4 cial institution from making loans or providing 

5 credits to the foreign person totaling more than 

6 $10,000,000 in any 12-month period unless 

7 such person is engaged in activities to relieve 

8 human suffering and the loans or credits are 

9 provided for such activities. 

10 (D) PROHIBITIONS ON FINANCIAL INSTI11 TUTIONS.—The following prohibitions may be 

12 imposed with respect to the foreign person if 

13 the foreign person is a financial institution: 

14 (i) PROHIBITION ON DESIGNATION AS

15 PRIMARY DEALER.—Neither the Board of 

16 Governors of the Federal Reserve System 

17 nor the Federal Reserve Bank of New 

18 York may designate, or permit the continu19 ation of any prior designation of, such fi20 nancial institution as a primary dealer in 

21 United States Government debt instru22 ments. 

23 (ii) PROHIBITION ON SERVICE AS A

24 REPOSITORY OF GOVERNMENT FUNDS.— 

25 Such financial institution may not serve as 


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1 agent of the United States Government or 

2 serve as repository for United States Gov3 ernment funds. 

4 The imposition of either sanction under clause 

5 (i) or (ii) shall be treated as 1 sanction for pur6 poses of paragraph (1), and the imposition of 

7 both such sanctions shall be treated as 2 sanc8 tions for purposes of paragraph (1). 

9 (E) PROCUREMENT SANCTION.—The 

10 United States Government may not procure, or 

11 enter into any contract for the procurement of, 

12 any goods or services from the foreign person. 

13 (F) FOREIGN EXCHANGE.—The President 

14 may, pursuant to such regulations as the Presi15 dent may prescribe, prohibit any transactions in 

16 foreign exchange that are subject to the juris17 diction of the United States and in which the 

18 foreign person has any interest. 

19 (G) BANKING TRANSACTIONS.—The Presi20 dent may, pursuant to such regulations as the 

21 President may prescribe, prohibit any transfers 

22 of credit or payments between financial institu23 tions or by, through, or to any financial institu24 tion, to the extent that such transfers or pay25 ments are subject to the jurisdiction of the 


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1 United States and involve any interest of the 

2 foreign person. 

3 (H) PROPERTY TRANSACTIONS.—The 

4 President may, pursuant to such regulations as 

5 the President may prescribe, prohibit any per6 son from— 

7 (i) acquiring, holding, withholding, 

8 using, transferring, withdrawing, trans9 porting, importing, or exporting any prop10 erty that is subject to the jurisdiction of 

11 the United States and with respect to 

12 which the foreign person has any interest; 

13 (ii) dealing in or exercising any right, 

14 power, or privilege with respect to such 

15 property; or 

16 (iii) conducting any transaction in17 volving such property. 

18 (I) BAN ON INVESTMENT IN EQUITY OR

19 DEBT OF SANCTIONED PERSON.—The President 

20 may, pursuant to such regulations or guidelines 

21 as the President may prescribe, prohibit any 

22 United States person from investing in or pur23 chasing significant amounts of equity or debt 

24 instruments of the foreign person. 


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1 (J) EXCLUSION OF CORPORATE OFFI2 CERS.—The President may direct the Secretary 

3 of State to deny a visa to, and the Secretary of 

4 Homeland Security to exclude from the United 

5 States, any alien that the President determines 

6 is a corporate officer or principal of, or a share7 holder with a controlling interest in, the foreign 

8 person. 

9 (K) SANCTIONS ON PRINCIPAL EXECUTIVE

10 OFFICERS.—The President may impose on the 

11 principal executive officer or officers of the for12 eign person, or on persons performing similar 

13 functions and with similar authorities as such 

14 officer or officers, any of the sanctions under 

15 this paragraph. 

16 (e) EXCEPTIONS.— 

17 (1) EXCEPTION TO COMPLY WITH UNITED NA18 TIONS HEADQUARTERS AGREEMENT.—Sanctions 

19 under this subsection shall not apply with respect to 

20 the admission of an alien to the United States if the 

21 admission of the alien is necessary to permit the 

22 United States to comply with the Agreement regard23 ing the Headquarters of the United Nations, signed 

24 at Lake Success June 26, 1947, and entered into 

25 force November 21, 1947, between the United NaVerDate Sep 11 2014 05:40 May 22, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1441.IS S1441

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1 tions and the United States, the Convention on Con2 sular Relations, done at Vienna April 24, 1963, and 

3 entered into force March 19, 1967, or other applica4 ble international obligations. 

5 (2) EXCEPTION RELATING TO IMPORTATION OF

6 GOODS.— 

7 (A) IN GENERAL.—A requirement or the 

8 authority to block and prohibit all transactions 

9 in all property and interests in property under 

10 this section shall not include the authority to 

11 impose sanctions on the importation of goods. 

12 (B) GOOD DEFINED.—In this paragraph, 

13 the term ‘‘good’’ means any article, natural or 

14 man-made substance, material, supply or manu15 factured product, including inspection and test 

16 equipment, and excluding technical data. 

17 (f) NATIONAL SECURITY WAIVER.—The President 

18 may waive the application of sanctions under this section 

19 with respect to a person if the President— 

20 (1) determines that the waiver is in the national 

21 security interests of the United States; and 

22 (2) submits to the appropriate congressional 

23 committees a report on the waiver and the reasons 

24 for the waiver. 

25 (g) 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 this section. 

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

8 violation of this section or any regulation, license, or 

9 order issued to carry out this section shall be subject 

10 to the penalties set forth in subsections (b) and (c) 

11 of section 206 of the International Emergency Eco12 nomic Powers Act (50 U.S.C. 1705) to the same ex13 tent as a person that commits an unlawful act de14 scribed in subsection (a) of that section. 

15 (h) DEFINITIONS.—In this section: 

16 (1) ADMISSION; ADMITTED; ALIEN.—The terms 

17 ‘‘admission’’, ‘‘admitted’’, and ‘‘alien’’ have the 

18 meanings given those terms in section 101 of the 

19 Immigration and Nationality Act (8 U.S.C. 1101). 

20 (2) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘‘appropriate congressional com22 mittees’’ means the Committee on Foreign Relations 

23 of the Senate and the Committee on Foreign Affairs 

24 of the House of Representatives. 


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1 (3) FOREIGN PERSON.—The term ‘‘foreign per2 son’’ means an individual or entity that is not a 

3 United States person. 

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

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

6 means that a person has actual knowledge, or should 

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

8 result. 

9 (5) UNITED STATES PERSON.—The term 

10 ‘‘United States person’’ means— 

11 (A) a United States citizen or an alien law12 fully admitted for permanent residence to the 

13 United States; or 

14 (B) an entity organized under the laws of 

15 the United States or any jurisdiction within the 

16 United States, including a foreign branch of 

17 such an entity. 

18 SEC. 4. STRATEGY TO IMPROVE ENERGY SECURITY OF EU19 ROPEAN ALLIES OF THE UNITED STATES. 

20 (a) IN GENERAL.—The President shall direct the 

21 Secretary of State, in coordination with the heads of other 

22 Federal agencies, as appropriate, to develop a strategy to 

23 improve the national and regional energy security of allies 

24 of the United States in Europe. 


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1 (b) ELEMENTS.—The strategy required by subsection 

2 (a) shall include elements— 

3 (1) to deepen the role of United States diplo4 macy in Europe and the Middle East in enhancing 

5 the energy security of allies of the United States in 

6 Europe; 

7 (2) to diversify the energy sources of such al8 lies; 

9 (3) to counter efforts by the Russian Federa10 tion to establish energy dominance over Europe; and 

11 (4) to improve the resilience of energy infra12 structure of such allies. 

13 SEC. 5. REPORT ON EFFECTS OF NORD STREAM 2 ON THE 

14 NATIONAL SECURITY OF THE UNITED 

15 STATES. 

16 Not later than 90 days after the date of the enact17 ment of this Act, the Secretary of State shall submit to 

18 the appropriate congressional committees (as defined in 

19 section 3(h)) a report that includes the following: 

20 (1) An assessment of the effects of the Nord 

21 Stream 2 natural gas pipeline on the national secu22 rity of the United States, including an assessment of 

23 the effect that increased dependence by countries in 

24 Europe on Russian natural gas would have on— 

25 (A) the energy security of Europe; 


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1 (B) the diplomatic security and foreign 

2 policy of Ukraine; 

3 (C) the diplomatic security and foreign pol4 icy of Germany; and 

5 (D) United States diplomatic missions and 

6 facilities of the United States Government in 

7 Europe. 

8 (2) A description of activities of, or support by, 

9 the Government of the Russian Federation aimed at 

10 influencing opinions of the public and elites in Eu11 rope to generate support for Nord Stream 2 and 

12 other Russian energy export projects, including 

13 through— 

14 (A) propaganda activities through media 

15 and digital platforms, including broadcast and 

16 satellite-based television, radio, internet, and 

17 print media; or 

18 (B) funding or otherwise supporting third19 party groups in Europe such as think tanks, 

20 academic institutions, trade associations, and 

21 other nongovernmental organizations. 

22 SEC. 6. REPORT ON ENTITIES INVOLVED IN CONSTRUC23 TION OR REPAIR OF NORD STREAM 2. 

24 (a) IN GENERAL.—Not later than 180 days after the 

25 date of the enactment of this Act, and annually thereafter 


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1 until the date that is 6 years after such date of enactment, 

2 the Secretary of State shall submit to the appropriate con3 gressional committees (as defined in section 3(h)) a report 

4 that includes— 

5 (1) a list of all entities, including financial insti6 tutions, directly or indirectly providing goods, serv7 ices, information, or technology for the construction 

8 or repair of the Nord Stream 2 natural gas pipeline; 

9 and 

10 (2) an assessment of whether each entity on the 

11 list required by paragraph (1) has knowingly en12 gaged in a significant transaction with, or provided 

13 goods, services, information, or technology to or 

14 for— 

15 (A) a Russian person the property or inter16 ests in property of which have been blocked 

17 pursuant to the International Emergency Eco18 nomic Powers Act (50 U.S.C. 1701 et seq.); 

19 (B) any person with respect to which sanc20 tions have been imposed under section 231 of 

21 the Countering America’s Adversaries Through 

22 Sanctions Act (22 U.S.C. 9525); or 

23 (C) any person with respect to which sanc24 tions have been imposed under— 


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1 (i) any other provision of title II of 

2 the Countering America’s Adversaries 

3 Through Sanctions Act (22 U.S.C. 9501 et 

4 seq.); 

5 (ii) the Support for the Sovereignty, 

6 Integrity, Democracy, and Economic Sta7 bility of Ukraine Act of 2014 (22 U.S.C. 

8 8901 et seq.); or 

9 (iii) the Ukraine Freedom Support 

10 Act of 2014 (22 U.S.C. 8921 et seq.). 

11 (b) RUSSIAN PERSON DEFINED.—In this section, the 

12 term ‘‘Russian person’’ has the meaning given that term 

13 in section 2 of the Ukraine Freedom Support Act of 2014 

14 (22 U.S.C. 8921). 

Æ 


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