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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1441 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 169
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, Mr. Cotton, Mr. 
Johnson, and Mr. Gardner) introduced the following bill; which was read 
        twice and referred to the Committee on Foreign Relations

                             July 31, 2019

                Reported by Mr. Risch, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Protecting Europe's Energy 
Security Act of 2019''.</DELETED>

<DELETED>SEC. 2. SENSE OF CONGRESS.</DELETED>

<DELETED>    It is the sense of Congress that--</DELETED>
        <DELETED>    (1) the United States and Europe share a common 
        history, a common identity, and common values built upon the 
        principles of democracy, rule of law, and individual 
        freedoms;</DELETED>
        <DELETED>    (2) the United States has encouraged and admired 
        the European project, which has resulted in a common market and 
        common policies, has achieved unprecedented prosperity and 
        stability on the continent, and serves as a model for other 
        countries to reform their institutions and prioritize 
        anticorruption measures;</DELETED>
        <DELETED>    (3) the relationships between the United States 
        and Europe and the United States and Germany are critical to 
        the national security interests of the United States as well as 
        to global prosperity and peace, and Germany in particular is a 
        crucial partner for the United States in multilateral efforts 
        aimed at promoting global prosperity and peace;</DELETED>
        <DELETED>    (4) the United States should stand against any 
        effort designed to weaken those relationships; and</DELETED>
        <DELETED>    (5) Germany has demonstrated leadership within the 
        European Union and in international fora to ensure that 
        sanctions imposed with respect to the Russian Federation for 
        its malign activities are maintained.</DELETED>

<DELETED>SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO PROVISION OF 
              CERTAIN VESSELS FOR THE CONSTRUCTION OF RUSSIAN ENERGY 
              EXPORT PIPELINES.</DELETED>

<DELETED>    (a) Report Required.--Not later than 60 days after the 
date of the enactment of this Act, and every 90 days thereafter, the 
Secretary of State shall submit to the appropriate congressional 
committees a report that identifies, for the period beginning on the 
date of the enactment of this Act and ending on the date of the 
report--</DELETED>
        <DELETED>    (1) vessels that engaged in pipe-laying at depths 
        of 100 feet or more below sea level for the construction of 
        Russian energy export pipelines; and</DELETED>
        <DELETED>    (2) foreign persons that have sold, leased, 
        provided, or facilitated the provision of those vessels for the 
        construction of such pipelines.</DELETED>
<DELETED>    (b) Inadmissibility to United States of Identified Persons 
and Corporate Officers.--The Secretary of State shall deny a visa to, 
and the Secretary of Homeland Security shall exclude from the United 
States of, any alien who is--</DELETED>
        <DELETED>    (1) a foreign person identified under subsection 
        (a)(2);</DELETED>
        <DELETED>    (2) a corporate officer of a person described in 
        paragraph (1); or</DELETED>
        <DELETED>    (3) a principal shareholder with a controlling 
        interest in a person described in paragraph (1).</DELETED>
<DELETED>    (c) Blocking of Property of Identified Persons.--The 
President shall exercise all powers granted to the President by the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to 
the extent necessary to block and prohibit all transactions in all 
property and interests in property of any person identified under 
subsection (a)(2) if such property and interests in property are in the 
United States, come within the United States, or are or come within the 
possession or control of a United States person.</DELETED>
<DELETED>    (d) Sanctions for Provision of Underwriting Services or 
Insurance or Reinsurance for Identified Vessels.--</DELETED>
        <DELETED>    (1) In general.--The President may impose 5 or 
        more of the sanctions described in paragraph (2) with respect 
        to a foreign person if the President determines that the person 
        knowingly, on or after the date of the enactment of this Act, 
        provides underwriting services or insurance or reinsurance for 
        a vessel identified under subsection (a)(1).</DELETED>
        <DELETED>    (2) Sanctions described.--The sanctions that may 
        be imposed with respect to a foreign person under paragraph (1) 
        are the following:</DELETED>
                <DELETED>    (A) Export-import bank assistance for 
                exports to sanctioned persons.--The President may 
                direct the Export-Import Bank of the United States not 
                to give approval to the issuance of any guarantee, 
                insurance, extension of credit, or participation in the 
                extension of credit in connection with the export of 
                any goods or services to the foreign person.</DELETED>
                <DELETED>    (B) Export sanction.--The President may 
                order the United States Government not to issue any 
                specific license and not to grant any other specific 
                permission or authority to export any goods or 
                technology to the foreign person under--</DELETED>
                        <DELETED>    (i) the Export Control Reform Act 
                        of 2018 (50 U.S.C. 4801 et seq.);</DELETED>
                        <DELETED>    (ii) the Arms Export Control Act 
                        (22 U.S.C. 2751 et seq.);</DELETED>
                        <DELETED>    (iii) the Atomic Energy Act of 
                        1954 (42 U.S.C. 2011 et seq.); or</DELETED>
                        <DELETED>    (iv) any other statute that 
                        requires the prior review and approval of the 
                        United States Government as a condition for the 
                        export or reexport of goods or 
                        services.</DELETED>
                <DELETED>    (C) Loans from united states financial 
                institutions.--The United States Government may 
                prohibit any United States financial institution from 
                making loans or providing credits to the foreign person 
                totaling more than $10,000,000 in any 12-month period 
                unless such person is engaged in activities to relieve 
                human suffering and the loans or credits are provided 
                for such activities.</DELETED>
                <DELETED>    (D) Prohibitions on financial 
                institutions.--The following prohibitions may be 
                imposed with respect to the foreign person if the 
                foreign person is a financial institution:</DELETED>
                        <DELETED>    (i) Prohibition on designation as 
                        primary dealer.--Neither the Board of Governors 
                        of the Federal Reserve System nor the Federal 
                        Reserve Bank of New York may designate, or 
                        permit the continuation of any prior 
                        designation of, such financial institution as a 
                        primary dealer in United States Government debt 
                        instruments.</DELETED>
                        <DELETED>    (ii) Prohibition on service as a 
                        repository of government funds.--Such financial 
                        institution may not serve as agent of the 
                        United States Government or serve as repository 
                        for United States Government funds.</DELETED>
                <DELETED>The imposition of either sanction under clause 
                (i) or (ii) shall be treated as 1 sanction for purposes 
                of paragraph (1), and the imposition of both such 
                sanctions shall be treated as 2 sanctions for purposes 
                of paragraph (1).</DELETED>
                <DELETED>    (E) Procurement sanction.--The United 
                States Government may not procure, or enter into any 
                contract for the procurement of, any goods or services 
                from the foreign person.</DELETED>
                <DELETED>    (F) Foreign exchange.--The President may, 
                pursuant to such regulations as the President may 
                prescribe, prohibit any transactions in foreign 
                exchange that are subject to the jurisdiction of the 
                United States and in which the foreign person has any 
                interest.</DELETED>
                <DELETED>    (G) Banking transactions.--The President 
                may, pursuant to such regulations as the President may 
                prescribe, prohibit any transfers of credit or payments 
                between financial institutions or by, through, or to 
                any financial institution, to the extent that such 
                transfers or payments are subject to the jurisdiction 
                of the United States and involve any interest of the 
                foreign person.</DELETED>
                <DELETED>    (H) Property transactions.--The President 
                may, pursuant to such regulations as the President may 
                prescribe, prohibit any person from--</DELETED>
                        <DELETED>    (i) acquiring, holding, 
                        withholding, using, transferring, withdrawing, 
                        transporting, importing, or exporting any 
                        property that is subject to the jurisdiction of 
                        the United States and with respect to which the 
                        foreign person has any interest;</DELETED>
                        <DELETED>    (ii) dealing in or exercising any 
                        right, power, or privilege with respect to such 
                        property; or</DELETED>
                        <DELETED>    (iii) conducting any transaction 
                        involving such property.</DELETED>
                <DELETED>    (I) Ban on investment in equity or debt of 
                sanctioned person.--The President may, pursuant to such 
                regulations or guidelines as the President may 
                prescribe, prohibit any United States person from 
                investing in or purchasing significant amounts of 
                equity or debt instruments of the foreign 
                person.</DELETED>
                <DELETED>    (J) Exclusion of corporate officers.--The 
                President may direct the Secretary of State to deny a 
                visa to, and the Secretary of Homeland Security to 
                exclude from the United States, any alien that the 
                President determines is a corporate officer or 
                principal of, or a shareholder with a controlling 
                interest in, the foreign person.</DELETED>
                <DELETED>    (K) Sanctions on principal executive 
                officers.--The President may impose on the principal 
                executive officer or officers of the foreign person, or 
                on persons performing similar functions and with 
                similar authorities as such officer or officers, any of 
                the sanctions under this paragraph.</DELETED>
<DELETED>    (e) Exceptions.--</DELETED>
        <DELETED>    (1) Exception to comply with united nations 
        headquarters agreement.--Sanctions under this subsection shall 
        not apply with respect to the admission of an alien to the 
        United States if the admission of the alien is necessary to 
        permit the United States to comply with the Agreement regarding 
        the Headquarters of the United Nations, signed at Lake Success 
        June 26, 1947, and entered into force November 21, 1947, 
        between the United Nations and the United States, the 
        Convention on Consular Relations, done at Vienna April 24, 
        1963, and entered into force March 19, 1967, or other 
        applicable international obligations.</DELETED>
        <DELETED>    (2) Exception relating to importation of goods.--
        </DELETED>
                <DELETED>    (A) In general.--A requirement or the 
                authority to block and prohibit all transactions in all 
                property and interests in property under this section 
                shall not include the authority to impose sanctions on 
                the importation of goods.</DELETED>
                <DELETED>    (B) Good defined.--In this paragraph, the 
                term ``good'' means any article, natural or man-made 
                substance, material, supply or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.</DELETED>
<DELETED>    (f) National Security Waiver.--The President may waive the 
application of sanctions under this section with respect to a person if 
the President--</DELETED>
        <DELETED>    (1) determines that the waiver is in the national 
        security interests of the United States; and</DELETED>
        <DELETED>    (2) submits to the appropriate congressional 
        committees a report on the waiver and the reasons for the 
        waiver.</DELETED>
<DELETED>    (g) Implementation; Penalties.--</DELETED>
        <DELETED>    (1) Implementation.--The President may exercise 
        all authorities provided to the President under sections 203 
        and 205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to carry out this section.</DELETED>
        <DELETED>    (2) Penalties.--A person that violates, attempts 
        to violate, conspires to violate, or causes a violation of this 
        section or any regulation, license, or order issued to carry 
        out this section shall be subject to the penalties set forth in 
        subsections (b) and (c) of section 206 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1705) to the same 
        extent as a person that commits an unlawful act described in 
        subsection (a) of that section.</DELETED>
<DELETED>    (h) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Admission; admitted; alien.--The terms 
        ``admission'', ``admitted'', and ``alien'' have the meanings 
        given those terms in section 101 of the Immigration and 
        Nationality Act (8 U.S.C. 1101).</DELETED>
        <DELETED>    (2) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means the 
        Committee on Foreign Relations of the Senate and the Committee 
        on Foreign Affairs of the House of Representatives.</DELETED>
        <DELETED>    (3) Foreign person.--The term ``foreign person'' 
        means an individual or entity that is not a United States 
        person.</DELETED>
        <DELETED>    (4) Knowingly.--The term ``knowingly'', with 
        respect to conduct, a circumstance, or a result, means that a 
        person has actual knowledge, or should have known, of the 
        conduct, the circumstance, or the result.</DELETED>
        <DELETED>    (5) United states person.--The term ``United 
        States person'' means--</DELETED>
                <DELETED>    (A) a United States citizen or an alien 
                lawfully admitted for permanent residence to the United 
                States; or</DELETED>
                <DELETED>    (B) an entity organized under the laws of 
                the United States or any jurisdiction within the United 
                States, including a foreign branch of such an 
                entity.</DELETED>

<DELETED>SEC. 4. STRATEGY TO IMPROVE ENERGY SECURITY OF EUROPEAN ALLIES 
              OF THE UNITED STATES.</DELETED>

<DELETED>    (a) In General.--The President shall direct the Secretary 
of State, in coordination with the heads of other Federal agencies, as 
appropriate, to develop a strategy to improve the national and regional 
energy security of allies of the United States in Europe.</DELETED>
<DELETED>    (b) Elements.--The strategy required by subsection (a) 
shall include elements--</DELETED>
        <DELETED>    (1) to deepen the role of United States diplomacy 
        in Europe and the Middle East in enhancing the energy security 
        of allies of the United States in Europe;</DELETED>
        <DELETED>    (2) to diversify the energy sources of such 
        allies;</DELETED>
        <DELETED>    (3) to counter efforts by the Russian Federation 
        to establish energy dominance over Europe; and</DELETED>
        <DELETED>    (4) to improve the resilience of energy 
        infrastructure of such allies.</DELETED>

<DELETED>SEC. 5. REPORT ON EFFECTS OF NORD STREAM 2 ON THE NATIONAL 
              SECURITY OF THE UNITED STATES.</DELETED>

<DELETED>    Not later than 90 days after the date of the enactment of 
this Act, the Secretary of State shall submit to the appropriate 
congressional committees (as defined in section 3(h)) a report that 
includes the following:</DELETED>
        <DELETED>    (1) An assessment of the effects of the Nord 
        Stream 2 natural gas pipeline on the national security of the 
        United States, including an assessment of the effect that 
        increased dependence by countries in Europe on Russian natural 
        gas would have on--</DELETED>
                <DELETED>    (A) the energy security of 
                Europe;</DELETED>
                <DELETED>    (B) the diplomatic security and foreign 
                policy of Ukraine;</DELETED>
                <DELETED>    (C) the diplomatic security and foreign 
                policy of Germany; and</DELETED>
                <DELETED>    (D) United States diplomatic missions and 
                facilities of the United States Government in 
                Europe.</DELETED>
        <DELETED>    (2) A description of activities of, or support by, 
        the Government of the Russian Federation aimed at influencing 
        opinions of the public and elites in Europe to generate support 
        for Nord Stream 2 and other Russian energy export projects, 
        including through--</DELETED>
                <DELETED>    (A) propaganda activities through media 
                and digital platforms, including broadcast and 
                satellite-based television, radio, internet, and print 
                media; or</DELETED>
                <DELETED>    (B) funding or otherwise supporting third-
                party groups in Europe such as think tanks, academic 
                institutions, trade associations, and other 
                nongovernmental organizations.</DELETED>

<DELETED>SEC. 6. REPORT ON ENTITIES INVOLVED IN CONSTRUCTION OR REPAIR 
              OF NORD STREAM 2.</DELETED>

<DELETED>    (a) In General.--Not later than 180 days after the date of 
the enactment of this Act, and annually thereafter until the date that 
is 6 years after such date of enactment, the Secretary of State shall 
submit to the appropriate congressional committees (as defined in 
section 3(h)) a report that includes--</DELETED>
        <DELETED>    (1) a list of all entities, including financial 
        institutions, directly or indirectly providing goods, services, 
        information, or technology for the construction or repair of 
        the Nord Stream 2 natural gas pipeline; and</DELETED>
        <DELETED>    (2) an assessment of whether each entity on the 
        list required by paragraph (1) has knowingly engaged in a 
        significant transaction with, or provided goods, services, 
        information, or technology to or for--</DELETED>
                <DELETED>    (A) a Russian person the property or 
                interests in property of which have been blocked 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.);</DELETED>
                <DELETED>    (B) any person with respect to which 
                sanctions have been imposed under section 231 of the 
                Countering America's Adversaries Through Sanctions Act 
                (22 U.S.C. 9525); or</DELETED>
                <DELETED>    (C) any person with respect to which 
                sanctions have been imposed under--</DELETED>
                        <DELETED>    (i) any other provision of title 
                        II of the Countering America's Adversaries 
                        Through Sanctions Act (22 U.S.C. 9501 et 
                        seq.);</DELETED>
                        <DELETED>    (ii) the Support for the 
                        Sovereignty, Integrity, Democracy, and Economic 
                        Stability of Ukraine Act of 2014 (22 U.S.C. 
                        8901 et seq.); or</DELETED>
                        <DELETED>    (iii) the Ukraine Freedom Support 
                        Act of 2014 (22 U.S.C. 8921 et seq.).</DELETED>
<DELETED>    (b) Russian Person Defined.--In this section, the term 
``Russian person'' has the meaning given that term in section 2 of the 
Ukraine Freedom Support Act of 2014 (22 U.S.C. 8921).</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Europe's Energy Security 
Act of 2019''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States and Europe share a common history, a 
        common identity, and common values built upon the principles of 
        democracy, rule of law, and individual freedoms;
            (2) the United States has encouraged and admired the 
        European project, which has resulted in a common market and 
        common policies, has achieved unprecedented prosperity and 
        stability on the continent, and serves as a model for other 
        countries to reform their institutions and prioritize 
        anticorruption measures;
            (3) the relationships between the United States and Europe 
        and the United States and Germany are critical to the national 
        security interests of the United States as well as to global 
        prosperity and peace, and Germany in particular is a crucial 
        partner for the United States in multilateral efforts aimed at 
        promoting global prosperity and peace;
            (4) the United States should stand against any effort 
        designed to weaken those relationships; and
            (5) Germany has demonstrated leadership within the European 
        Union and in international fora to ensure that sanctions 
        imposed with respect to the Russian Federation for its malign 
        activities are maintained.

SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO PROVISION OF CERTAIN 
              VESSELS FOR THE CONSTRUCTION OF CERTAIN RUSSIAN ENERGY 
              EXPORT PIPELINES.

    (a) Report Required.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, and every 90 days thereafter, the 
        Secretary of State, in consultation with the Secretary of the 
        Treasury, shall submit to the appropriate congressional 
        committees a report that identifies, for the period specified 
        in paragraph (2)--
                    (A) vessels that engaged in pipe-laying at depths 
                of 100 feet or more below sea level for the 
                construction of the Nord Stream 2 pipeline project, the 
                TurkStream pipeline project, or any project that is a 
                successor to either such project; and
                    (B) foreign persons that have--
                            (i) knowingly sold, leased, or provided 
                        those vessels for the construction of such a 
                        project; or
                            (ii) intentionally facilitated deceptive or 
                        structured transactions to provide those 
                        vessels for the construction of such a project.
            (2) Period specified.--The period specified in this 
        paragraph is--
                    (A) in the case of the first report required to be 
                submitted by paragraph (1), the period beginning on the 
                date of the enactment of this Act and ending on the 
                date on which the report is submitted; and
                    (B) in the case of any subsequent such report, the 
                90-day period preceding submission of the report.
    (b) Inadmissibility to United States of Identified Persons and 
Corporate Officers.--The Secretary of State shall deny a visa to, and 
the Secretary of Homeland Security shall exclude from the United 
States, any alien who is--
            (1) a foreign person identified under subsection (a)(1)(B);
            (2) a corporate officer of a person described in paragraph 
        (1); or
            (3) a principal shareholder with a controlling interest in 
        a person described in paragraph (1).
    (c) Blocking of Property of Identified Persons.--The President 
shall exercise all powers granted to the President by the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent 
necessary to block and prohibit all transactions in all property and 
interests in property of any person identified under subsection 
(a)(1)(B) if such property and interests in property are in the United 
States, come within the United States, or are or come within the 
possession or control of a United States person.
    (d) Sanctions for Provision of Underwriting Services or Insurance 
or Reinsurance for Identified Vessels.--
            (1) In general.--The President may impose 3 or more of the 
        sanctions described in paragraph (2) with respect to a foreign 
        person if the President determines that the person knowingly, 
        on or after the date of the enactment of this Act, provides 
        significant underwriting services or insurance or reinsurance 
        for a vessel identified under subsection (a)(1)(A).
            (2) Sanctions described.--The sanctions that may be imposed 
        with respect to a foreign person under paragraph (1) are the 
        following:
                    (A) Export-import bank assistance for exports to 
                sanctioned persons.--The President may direct the 
                Export-Import Bank of the United States not to give 
                approval to the issuance of any guarantee, insurance, 
                extension of credit, or participation in the extension 
                of credit in connection with the export of any goods or 
                services to the foreign person.
                    (B) Export sanction.--The President may order the 
                United States Government not to issue any specific 
                license and not to grant any other specific permission 
                or authority to export any goods or technology to the 
                foreign person under--
                            (i) the Export Control Reform Act of 2018 
                        (50 U.S.C. 4801 et seq.);
                            (ii) the Arms Export Control Act (22 U.S.C. 
                        2751 et seq.);
                            (iii) the Atomic Energy Act of 1954 (42 
                        U.S.C. 2011 et seq.); or
                            (iv) any other statute that requires the 
                        prior review and approval of the United States 
                        Government as a condition for the export or 
                        reexport of goods or services.
                    (C) Loans from united states financial 
                institutions.--The United States Government may 
                prohibit any United States financial institution from 
                making loans or providing credits to the foreign person 
                totaling more than $10,000,000 in any 12-month period 
                unless such person is engaged in activities to relieve 
                human suffering and the loans or credits are provided 
                for such activities.
                    (D) Prohibitions on financial institutions.--The 
                following prohibitions may be imposed with respect to 
                the foreign person if the foreign person is a financial 
                institution:
                            (i) Prohibition on designation as primary 
                        dealer.--Neither the Board of Governors of the 
                        Federal Reserve System nor the Federal Reserve 
                        Bank of New York may designate, or permit the 
                        continuation of any prior designation of, such 
                        financial institution as a primary dealer in 
                        United States Government debt instruments.
                            (ii) Prohibition on service as a repository 
                        of government funds.--Such financial 
                        institution may not serve as an agent of the 
                        United States Government or serve as a 
                        repository for United States Government funds.
                The imposition of either sanction under clause (i) or 
                (ii) shall be treated as 1 sanction for purposes of 
                paragraph (1), and the imposition of both such 
                sanctions shall be treated as 2 sanctions for purposes 
                of paragraph (1).
                    (E) Procurement sanction.--The United States 
                Government may not procure, or enter into any contract 
                for the procurement of, any goods or services from the 
                foreign person.
                    (F) Foreign exchange.--The President may, pursuant 
                to such regulations as the President may prescribe, 
                prohibit any transactions in foreign exchange that are 
                subject to the jurisdiction of the United States and in 
                which the foreign person has any interest.
                    (G) Banking transactions.--The President may, 
                pursuant to such regulations as the President may 
                prescribe, prohibit any transfers of credit or payments 
                between financial institutions or by, through, or to 
                any financial institution, to the extent that such 
                transfers or payments are subject to the jurisdiction 
                of the United States and involve any interest of the 
                foreign person.
                    (H) Property transactions.--The President may, 
                pursuant to such regulations as the President may 
                prescribe, prohibit any person from--
                            (i) acquiring, holding, withholding, using, 
                        transferring, withdrawing, transporting, 
                        importing, or exporting any property that is 
                        subject to the jurisdiction of the United 
                        States and with respect to which the foreign 
                        person has any interest;
                            (ii) dealing in or exercising any right, 
                        power, or privilege with respect to such 
                        property; or
                            (iii) conducting any transaction involving 
                        such property.
                    (I) Ban on investment in equity or debt of 
                sanctioned person.--The President may, pursuant to such 
                regulations or guidelines as the President may 
                prescribe, prohibit any United States person from 
                investing in or purchasing significant amounts of 
                equity or debt instruments of the foreign person.
                    (J) Exclusion of corporate officers.--The President 
                may direct the Secretary of State to deny a visa to, 
                and the Secretary of Homeland Security to exclude from 
                the United States, any alien that the President 
                determines is a corporate officer or principal of, or a 
                shareholder with a controlling interest in, the foreign 
                person.
                    (K) Sanctions on principal executive officers.--The 
                President may impose on the principal executive officer 
                or officers of the foreign person, or on persons 
                performing similar functions and with similar 
                authorities as such officer or officers, any of the 
                sanctions under this paragraph.
    (e) Wind-down Period.--The President may not impose sanctions under 
this section with respect to a person identified in the first report 
submitted under subsection (a) if the President certifies in that 
report that the person has, not later than 30 days after the date of 
the enactment of this Act, engaged in good faith efforts to wind down 
operations that would otherwise subject the person to the imposition of 
sanctions under this section.
    (f) Exceptions.--
            (1) Exception for intelligence, law enforcement, and 
        national security activities.--Sanctions under this section 
        shall not apply to any authorized intelligence, law 
        enforcement, or national security activities of the United 
        States.
            (2) Exception to comply with united nations headquarters 
        agreement.--Sanctions under this section shall not apply with 
        respect to the admission of an alien to the United States if 
        the admission of the alien is necessary to permit the United 
        States to comply with the Agreement regarding the Headquarters 
        of the United Nations, signed at Lake Success June 26, 1947, 
        and entered into force November 21, 1947, between the United 
        Nations and the United States, the Convention on Consular 
        Relations, done at Vienna April 24, 1963, and entered into 
        force March 19, 1967, or other applicable international 
        obligations.
            (3) Exception for safety of vessels and crew.--Sanctions 
        under this section shall not apply with respect to a person 
        providing provisions to a vessel identified under subsection 
        (a)(1)(A) if such provisions are intended for the safety and 
        care of the crew aboard the vessel, the protection of human 
        life aboard the vessel, or the maintenance of the vessel to 
        avoid any environmental or other significant damage.
            (4) Exception for repair or maintenance of pipelines.--
        Sanctions under this section shall not apply with respect to a 
        person for engaging in activities necessary for or related to 
        the repair or maintenance of, or environmental remediation with 
        respect to, a pipeline project described in subsection 
        (a)(1)(A).
            (5) Exception relating to importation of goods.--
                    (A) In general.--A requirement or the authority to 
                block and prohibit all transactions in all property and 
                interests in property under this section shall not 
                include the authority to impose sanctions on the 
                importation of goods.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or man-made 
                substance, material, supply or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.
    (g) Waivers.--
            (1) National interest waiver for visa ban.--The President 
        may waive the application of sanctions under subsection (b) 
        with respect to an alien if the President--
                    (A) determines that the waiver is in the national 
                interests of the United States; and
                    (B) submits to the appropriate congressional 
                committees a report on the waiver and the reasons for 
                the waiver.
            (2) National security waiver for economic and other 
        sanctions.--The President may waive the application of 
        sanctions under subsection (c) or (d) with respect to a person 
        if the President--
                    (A) determines that the waiver is in the national 
                security interests of the United States; and
                    (B) submits to the appropriate congressional 
                committees a report on the waiver and the reasons for 
                the waiver.
    (h) Implementation; Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided to the President under sections 203 and 
        205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to carry out this section.
            (2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of this 
        section or any regulation, license, or order issued to carry 
        out this section shall be subject to the penalties set forth in 
        subsections (b) and (c) of section 206 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1705) to the same 
        extent as a person that commits an unlawful act described in 
        subsection (a) of that section.
    (i) Termination and Sunset.--The authority to impose sanctions 
under this section with respect to a person involved in the 
construction of a pipeline project described in subsection (a)(1)(A), 
and any sanctions imposed under this section with respect to that 
project, shall terminate on the date that is the earlier of--
            (1) the date on which the President certifies to the 
        appropriate congressional committees that appropriate 
        safeguards have been put in place--
                    (A) to minimize the ability of the Government of 
                the Russian Federation to use that project as a tool of 
                coercion and political leverage, including by 
                achieving--
                            (i) the unbundling of energy production and 
                        transmission so that entities owned or 
                        controlled by that Government do not control 
                        the transmission network for the pipeline;
                            (ii) transparency in the energy market of 
                        the Russian Federation; and
                            (iii) effective regulatory oversight of 
                        that market; and
                    (B) to ensure, barring unforeseen circumstances, 
                that the project would not result in a decrease of more 
                than 25 percent in the volume of Russian energy exports 
                transiting through existing pipelines in other 
                countries, particularly Ukraine, relative to the 
                average monthly volume of Russian energy exports 
                transiting through such pipelines in 2018; or
            (2) the date that is 10 years after the date of the 
        enactment of this Act.
    (j) Definitions.--In this section:
            (1) Admission; admitted; alien.--The terms ``admission'', 
        ``admitted'', and ``alien'' have the meanings given those terms 
        in section 101 of the Immigration and Nationality Act (8 U.S.C. 
        1101).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Relations of the Senate and the Committee on Foreign 
        Affairs of the House of Representatives.
            (3) Foreign person.--The term ``foreign person'' means an 
        individual or entity that is not a United States person.
            (4) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (5) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States;
                    (B) an entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person within the United States.

SEC. 4. LIST OF ENTITIES INVOLVED IN CONSTRUCTION OR REPAIR OF THE NORD 
              STREAM 2 PIPELINE.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter until the date that is 6 
years after such date of enactment, the Secretary of State, in 
consultation with the Secretary of the Treasury, shall submit to the 
appropriate congressional committees (as defined in section 3(j)) a 
list of all entities, including financial institutions, directly or 
indirectly providing significant goods, services, information, or 
technology for the construction or repair of the Nord Stream 2 pipeline 
project.
    (b) Form.--The list required by subsection (a) shall be submitted 
in unclassified form but may include a classified annex.
                                                       Calendar No. 169

116th CONGRESS

  1st Session

                                S. 1441

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             July 31, 2019

                       Reported with an amendment
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