I 

113TH CONGRESS 

2D SESSION H. R. 5249 

To re-impose sanctions on Russian arms exporter Rosoboronexport, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2014 

Mr. MORAN (for himself, Mr. KINZINGER of Illinois, Ms. DELAURO, Ms. KAPTUR, Mr. LARSON of Connecticut, and Ms. ESTY) introduced the following bill; which was referred to the Committee on Foreign Affairs, and 

in addition to the Committees on Oversight and Government Reform and 

Financial Services, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To re-impose sanctions on Russian arms exporter 

Rosoboronexport, 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 ‘‘Rosoboronexport Embargo 

5 Act of 2014’’. 


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1 SEC. 2. PROHIBITION ON DIRECT OR INDIRECT USE OF 

2 FUNDS TO ENTER INTO CONTRACTS OR 

3 AGREEMENTS WITH ROSOBORONEXPORT. 

4 (a) PROHIBITION.—The head of an executive agency 

5 may not enter into a contract, memorandum of under6 standing, or cooperative agreement with, or make a grant 

7 to, or provide a loan or loan agreement to Rosoboronex8 port or any subsidiary of Rosoboronexport related to the 

9 design, manufacture, or sale of military equipment. 

10 (b) WAIVER.—The President may waive the applica11 bility of subsection (a) if the President, in consultation 

12 with the Secretary of Defense, the Secretary of State, the 

13 Secretary of Commerce and the Director of National Intel14 ligence, certifies in writing to the appropriate congres15 sional committees that— 

16 (1) to the best of the President’s knowledge— 

17 (A) Rosoboronexport has ceased the trans18 fer of lethal military equipment to, and the 

19 maintenance of existing lethal military equip20 ment for, the Government of the Syrian Arab 

21 Republic; 

22 (B) the armed forces of the Russian Fed23 eration have withdrawn from Crimea (other 

24 than military forces present on military bases 

25 subject to agreements in force between the GovVerDate Mar 15 2010 00:17 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5249.IH H5249

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1 ernment of the Russian Federation and the 

2 Government of Ukraine); and 

3 (C) agents of the Russian Federation are 

4 not taking active measures to destabilize the 

5 control of the Government of Ukraine over east6 ern Ukraine (including through active support 

7 of efforts to unlawfully occupy facilities of the 

8 Government of Ukraine); or 

9 (2) the waiver is in the national security inter10 ests of the United States. 

11 (c) REPROGRAMMING AUTHORITY.— 

12 (1) IN GENERAL.—The President may repro13 gram funds appropriated or otherwise made avail14 able for Economic Support Fund assistance or secu15 rity assistance for the government of a country that, 

16 on or after the date of the enactment of this Act, 

17 enters into a contract, memorandum of under18 standing, or cooperative agreement with, or makes a 

19 grant to, or provides a loan or loan agreement to 

20 Rosoboronexport, or any subsidiary of Rosoboronex21 port, in an amount up to or equal to the total 

22 amount of each such contract, memorandum of un23 derstanding, cooperative agreement, loan, or loan 

24 agreement. 


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1 (2) NOTIFICATION.—The President shall notify 

2 Congress not later than 15 days before reprogram3 ming funds under paragraph (1). 

4 (d) DEFINITIONS.—In this section: 

5 (1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means— 

8 (A) the Committee on Armed Services, the 

9 Committee on Foreign Relations, and the Com10 mittee on Appropriations of the Senate; and 

11 (B) the Committee on Armed Services, the 

12 Committee on Foreign Affairs, and the Com13 mittee on Appropriations of the House of Rep14 resentatives. 

15 (2) EXECUTIVE AGENCY.—The term ‘‘executive 

16 agency’’ has the meaning given the term in section 

17 133 of title 41, United States Code. 

18 SEC. 3. PROHIBITION ON ASSISTING ROSOBORONEXPORT 

19 THROUGH THE PROVISION OF FINANCING. 

20 (a) PROHIBITED ACTIVITY DEFINED.—For purposes 

21 of this section, the term ‘‘prohibited activity’’ means the 

22 act of knowingly, materially, and directly contributing or 

23 attempting to contribute, through the provision of financ24 ing, to the transfer or retransfer of goods or technology 

25 to Rosoboronexport or any subsidiary of Rosoboronexport. 


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1 (b) PROHIBITION.—No United States person may en2 gage in any prohibited activity to the extent that the 

3 United States has jurisdiction to prohibit such activity by 

4 such United States person. 

5 (c) PRESIDENTIAL DETERMINATION AND ORDER

6 WITH RESPECT TO UNITED STATES AND FOREIGN PER7 SONS.—If the President determines that a United States 

8 person has engaged in a prohibited activity (without re9 gard to whether subsection (b) applies), the President 

10 shall, by order, impose the sanctions described in sub11 section (d) on such person. 

12 (d) SANCTIONS.—The following sanctions shall be 

13 imposed pursuant to any order issued under subsection 

14 (c) with respect to any United States person: 

15 (1) BAN ON DEALINGS IN GOVERNMENT FI16 NANCE.— 

17 (A) DESIGNATION AS PRIMARY DEALER.— 

18 Neither the Board of Governors of the Federal 

19 Reserve System nor the Federal Reserve Bank 

20 of New York may designate, or permit the con21 tinuation of any prior designation of, the person 

22 as a primary dealer in United States Govern23 ment debt instruments. 


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1 (B) SERVICE AS DEPOSITARY.—The person 

2 may not serve as a depositary for United States 

3 Government funds. 

4 (2) RESTRICTIONS ON OPERATIONS.—The per5 son may not, directly or indirectly— 

6 (A) commence any line of business in the 

7 United States in which the person was not en8 gaged as of the date of the order; or 

9 (B) conduct business from any location in 

10 the United States at which the person did not 

11 conduct business as of the date of the order. 

12 (e) TERMINATION OF THE SANCTIONS.—Any sanc13 tion imposed on any person pursuant to an order issued 

14 under subsection (c) shall— 

15 (1) remain in effect for a period of not less 

16 than 12 months; and 

17 (2) cease to apply after the end of such 12- 

18 month period only if the President determines, and 

19 certifies in writing to the Congress, that— 

20 (A) the person has ceased to engage in any 

21 prohibited activity; and 

22 (B) the President has received reliable as23 surances from such person that the person will 

24 not, in the future, engage in any prohibited ac25 tivity. 


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1 (f) WAIVER.—The President may waive the applica2 tion of any sanction imposed on any person pursuant to 

3 an order issued under subsection (c) if the President de4 termines, and certifies in writing to the Congress, that the 

5 continued imposition of the sanction would have a serious 

6 adverse effect on the safety and soundness of the domestic 

7 or international financial system or on domestic or inter8 national payments systems. 

9 (g) ENFORCEMENT ACTION.—The Attorney General 

10 may bring an action in an appropriate district court of 

11 the United States for injunctive and other appropriate re12 lief with respect to— 

13 (1) any violation of subsection (b); or 

14 (2) any order issued pursuant to subsection (c). 

15 (h) KNOWINGLY DEFINED.— 

16 (1) IN GENERAL.—For purposes of this section, 

17 the term ‘‘knowingly’’ means the state of mind of a 

18 person with respect to conduct, a circumstance, or a 

19 result in which— 

20 (A) such person is aware that such person 

21 is engaging in such conduct, that such cir22 cumstance exists, or that such result is substan23 tially certain to occur; or 


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1 (B) such person has a firm belief that such 

2 circumstance exists or that such result is sub3 stantially certain to occur. 

4 (2) KNOWLEDGE OF THE EXISTENCE OF A PAR5 TICULAR CIRCUMSTANCE.—If knowledge of the exist6 ence of a particular circumstance is required for an 

7 offense, such knowledge is established if a person is 

8 aware of a high probability of the existence of such 

9 circumstance, unless the person actually believes 

10 that such circumstance does not exist. 

11 (i) SCOPE OF APPLICATION.—This section shall apply 

12 with respect to prohibited activities that occur on or after 

13 the date of the enactment of this Act. 

14 SEC. 4. SANCTIONS AGAINST UNITED STATES PERSONS 

15 THAT TRANSFERS OR RETRANSFERS GOODS 

16 OR TECHNOLOGY, OR ENTERS INTO CON17 TRACTS, OR ENGAGES IN TRADE, WITH 

18 ROSOBORONEXPORT. 

19 (a) IN GENERAL.—If any United States person 

20 transfers or retransfers goods or technology, or enters into 

21 contracts, or engages in trade, with Rosoboronexport, or 

22 any subsidiary of Rosoboronexport, then the sanctions de23 scribed in subsection (b) shall be imposed. 

24 (b) MANDATORY SANCTIONS.—The sanctions to be 

25 imposed pursuant to subsection (a) are as follows: 


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1 (1) PROCUREMENT SANCTION.—For a period of 

2 two years, the United States Government shall not 

3 procure, or enter into any contract for the procure4 ment of, any goods or services from the sanctioned 

5 person. 

6 (2) EXPORT SANCTION.—For a period of two 

7 years, the United States Government shall not issue 

8 any license for any export by or to the sanctioned 

9 person. 

10 SEC. 5. REPORT ON ROSOBORONEXPORT ACTIVITIES. 

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

12 after the date of the enactment of this Act, the Secretary 

13 of Defense, in consultation with the Secretary of State and 

14 the Director of National Intelligence, shall submit to the 

15 appropriate congressional committees a report setting 

16 forth the following: 

17 (1) A list of the known transfers of lethal mili18 tary equipment by Rosoboronexport to the ‘‘Donetsk 

19 People’s Republic’’ or other separatist groups in 

20 Ukraine. 

21 (2) A list of the known transfers of lethal mili22 tary equipment by Rosoboronexport to the Govern23 ment of the Syrian Arab Republic since March 15, 

24 2011. 


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1 (3) A list of the known contracts, if any, that 

2 Rosoboronexport has signed with the Government of 

3 the Syrian Arab Republic since March 15, 2011. 

4 (4) A detailed list of all existing contracts, 

5 memorandums of understanding, cooperative agree6 ments, grants, loans, and loan guarantees between 

7 the Department of Defense and Rosoboronexport, 

8 including a description of the transaction, signing 

9 dates, values, and quantities. 

10 (b) FORM.—The report required by subsection (a) 

11 shall be submitted in unclassified form, but may include 

12 a classified annex. 

13 (c) APPROPRIATE CONGRESSIONAL COMMITTEES.— 

14 In this section, the term ‘‘appropriate congressional com15 mittees’’ means— 

16 (1) the Committee on Armed Services, the 

17 Committee on Foreign Relations, and the Committee 

18 on Appropriations of the Senate; and 

19 (2) the Committee on Armed Services, the 

20 Committee on Foreign Affairs, and the Committee 

21 on Appropriations of the House of Representatives. 

22 SEC. 6. UNITED STATES PERSON DEFINED. 

23 In this Act, the term ‘‘United States person’’ 

24 means— 


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1 (1) a natural person who is a citizen of the 

2 United States or who owes permanent allegiance to 

3 the United States; and 

4 (2) a corporation or other legal entity which is 

5 organized under the laws of the United States, any 

6 State or territory thereof, or the District of Colum7 bia, if natural persons described in paragraph (1) 

8 own, directly or indirectly, more than 50 percent of 

9 the outstanding capital stock or other beneficial in10 terest in such legal entity. 

Æ 


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