REPO for Ukrainians Act

To authorize the Secretary of State to provide additional assistance to Ukraine using assets confiscated from the Central Bank of the Russian Federation and other sovereign assets of the Russian Federation, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act REPO for Ukrainians Act (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—Confiscation and Repurposing of Russian Sovereign Assets Sec. 101. Findings; sense of Congress. Sec. 102. Sense of Congress regarding importance of the Russian Federation providing compensation to Ukraine. Sec. 103. Prohibition on release of blocked Russian sovereign assets. Sec. 104. Authority to ensure compensation to Ukraine using confiscated Russian sovereign assets. Sec. 105. International agreement to use Russian sovereign assets to provide for the reconstruction of Ukraine. Sec. 106. Report on use of confiscated Russian sovereign assets for reconstruction. Sec. 107. Assessment by Secretary of State and Administrator of United States Agency for International Development on reconstruction and rebuilding needs of Ukraine. Sec. 108. Exception relating to importation of goods. Sec. 109. Definitions. TITLE II—Multilateral Sanctions Coordination Sec. 201. Statement of policy regarding coordination of multilateral sanctions with respect to the Russian Federation. Sec. 202. Assessment of impact of Ukraine-related sanctions on the economy of the Russian Federation. Sec. 203. Information on voting practices in the United Nations with respect to the invasion of Ukraine by the Russian Federation. I Confiscation and Repurposing of Russian Sovereign Assets 101. Findings; sense of Congress (a) Findings Congress makes the following findings: (1) On February 24, 2022, the Government of the Russian Federation violated the sovereignty and territorial integrity of Ukraine by engaging in a premeditated, second illegal invasion of Ukraine. (2) The international community has condemned the illegal invasions of Ukraine by the Russian Federation, as well as the commission of war crimes by the Russian Federation, including through the deliberate targeting of civilians and civilian infrastructure and the commission of sexual violence. (3) The leaders of the G7 have called the Russian Federation’s unprovoked and completely unjustified attack on the democratic state of Ukraine serious violation of international law and a grave breach of the United Nations Charter and all commitments Russia entered in the Helsinki Final Act and the Charter of Paris and its commitments in the Budapest Memorandum (4) On March 2, 2022, the United Nations General Assembly adopted Resolution ES–11/1, entitled Aggression against Ukraine deplore[d] in the strongest terms the aggression by the Russian Federation against Ukraine in violation of Article 2(4) of the [United Nations] Charter immediately cease its use of force against Ukraine immediately, completely and unconditionally withdraw all of its military forces from the territory of Ukraine within its internationally recognized borders (5) On March 16, 2022, the International Court of Justice issued provisional measures ordering the Russian Federation to immediately suspend the military operations that it commenced on 24 February 2022 in the territory of Ukraine (6) On November 14, 2022, the United Nations General Assembly adopted a resolution— (A) recognizing that the Russian Federation must bear the legal consequences of all of its internationally wrongful acts, including making reparation for the injury, including any damage, caused by such acts; (B) recognizing the need for the establishment of an international mechanism for reparation for damage, loss, or injury caused by the Russian Federation in Ukraine; and (C) recommending creation of an international register of such damage, loss, or injury. (7) Under international law, a country that is responsible for an internationally wrongful act is under an obligation to compensate for the damage it has caused if such damage cannot be made good by restitution. The Russian Federation bears such responsibility to compensate Ukraine, and because of this grave breach of international law, all states are legally entitled to take countermeasures that are proportionate and aimed at inducing the Russian Federation to comply with its international obligations, including countermeasures that suspend ordinary international obligations to the Russian Federation, to help enforce the obligation of the Russian Federation to compensate Ukraine. (b) Sense of congress It is the sense of Congress that, having committed an act of aggression, as recognized by the United Nations General Assembly on March 2, 2022, the Russian Federation is to be considered as an aggressor state. The extreme illegal actions taken by the Russian Federation, including an act of aggression, present a unique situation, requiring and justifying the establishment of a legal authority to compensate victims of aggression by the Russian Federation in Ukraine. In this case, that authority is the authority of the United States Government and other countries to confiscate Russian sovereign assets in their respective jurisdictions to help enforce the obligation of the Russian Federation to compensate Ukraine. 102. Sense of Congress regarding importance of the Russian Federation providing compensation to Ukraine It is the sense of Congress that— (1) the Russian Federation bears responsibility for the financial burden of the reconstruction of Ukraine and for countless other costs associated with the illegal invasion of Ukraine by the Russian Federation that began on February 24, 2022; (2) the full cost of the Russian Federation’s unlawful war against Ukraine and the amount of money the Russian Federation must pay Ukraine should be assessed by an international body or mechanism charged with determining compensation and providing assistance to Ukraine; (3) the Russian Federation is now on notice of its opportunity to comply with its international obligations, including compensation, or, by agreement with the government of independent Ukraine, authorize an international body or mechanism to address those outstanding obligations with authority to make binding decisions on parties that comply in good faith; (4) the Russian Federation can, by negotiated agreement, participate in any international process to assess the full cost of the Russian Federation’s unlawful war against Ukraine and make funds available to compensate for damage, loss, and injury arising from its internationally wrongful acts in Ukraine, and if it fails to do so, the United States and other countries should explore other avenues for ensuring compensation to Ukraine, including confiscation and repurposing of assets of the Russian Federation; (5) the President should lead robust engagement on all bilateral and multilateral aspects of the response by the United States to efforts by the Russian Federation to undermine the sovereignty and territorial integrity of Ukraine, including on any policy coordination and alignment regarding the disposition of Russian sovereign assets in the context of compensation; (6) the confiscation and repurposing of Russian sovereign assets by the United States is in the vital national security interests of the United States and consistent with United States and international law; and (7) the United States should work with international allies and partners on the confiscation and repurposing of Russian sovereign assets as part of a coordinated, multilateral effort, including with G7 countries and other countries in which Russian sovereign assets are located. 103. Prohibition on release of blocked Russian sovereign assets (a) In general No Russian sovereign asset that is blocked or immobilized by the Department of the Treasury before the date specified in section 104(g) may be released or mobilized until the President certifies to the appropriate congressional committees that— (1) hostilities between the Russian Federation and Ukraine have ceased; and (2) (A) full compensation has been made to Ukraine for harms resulting from the invasion of Ukraine by the Russian Federation; or (B) the Russian Federation is participating in a bona fide international mechanism that, by agreement, will discharge the obligations of the Russian Federation to compensate Ukraine for all amounts determined to be owed to Ukraine. (b) Notification Not later than 30 days before the release or mobilization of a Russian sovereign asset that previously had been blocked or immobilized by the Department of the Treasury, the President shall submit to the appropriate congressional committees— (1) a notification of the decision to release or mobilize the asset; and (2) a justification in writing for such release or mobilization. (c) Joint resolution of disapproval (1) In general No Russian sovereign asset that previously had been blocked or immobilized by the Department of the Treasury may be released or mobilized if, within 30 days of receipt of the notification and justification required under subsection (b), a joint resolution is enacted prohibiting the proposed release or mobilization. (2) Expedited procedures Any joint resolution described in paragraph (1) introduced in either House of Congress shall be considered in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976 ( Public Law 94–329 (d) Cooperation on prohibition of release of certain Russian sovereign assets The President may take such action as may be necessary to seek to obtain an agreement or arrangement between the United States, Ukraine, and other countries that have blocked or immobilized Russian sovereign assets to prohibit such assets from being released or mobilized until an agreement has been reached that discharges the Russian Federation from further obligations to compensate Ukraine. 104. Authority to ensure compensation to Ukraine using confiscated Russian sovereign assets (a) Reporting on Russian assets (1) Notice required Not later than 30 days after the date of the enactment of this Act, the President shall, by means of such instructions or regulations as the President may prescribe, require any United States financial institution at which Russian sovereign assets are located, and that knows or should know of such assets, to provide notice of such assets, including relevant information required under section 501.603(b)(ii) of title 31, Code of Federal Regulations (or successor regulations), to the Secretary of the Treasury not later than 10 days after detection of such assets. (2) Report required (A) In general Not later than 180 days after the date of the enactment of this Act, and annually thereafter for 3 years, the President shall submit to the appropriate congressional committees a report detailing the status of Russian sovereign assets subject to the jurisdiction of the United States. (B) Form The report required by subparagraph (A) shall be submitted in unclassified form, but may include a classified annex. (b) Confiscation (1) In general The President may confiscate any Russian sovereign assets subject to the jurisdiction of the United States. (2) Liquidation and deposit The President shall— (A) deposit any funds confiscated under paragraph (1) into the Ukraine Support Fund established under subsection (c); (B) liquidate or sell any other property confiscated under paragraph (1) and deposit the funds resulting from such liquidation or sale into the Ukraine Support Fund established under subsection (c); and (C) make all such funds available for the purposes described in subsection (d). (3) Method of confiscation The President shall confiscate Russian sovereign assets under paragraph (1) through instructions or licenses or in such other manner as the President determines appropriate. (4) Vesting All right, title, and interest in Russian sovereign assets confiscated under paragraph (1) shall vest, if necessary, in the Government of the United States while being held in the Ukraine Support Fund established under subsection (c). (c) Establishment of the Ukraine Support Fund (1) In general The President shall establish a non-interest-bearing account, to be known as the Ukraine Support Fund (2) Use of funds The funds in the account established under paragraph (1) shall be available to be used only as specified in subsection (d). (d) Use of confiscated property (1) In general Subject to paragraph (2), funds in the Ukraine Support Fund shall be available to the Secretary of State, in consultation with the Administrator of the United States Agency for International Development, for the purpose of compensating Ukraine for damages resulting from the unlawful invasion by the Russian Federation that began on February 24, 2022, including through, to the extent possible, the provision of such funds to an international body or mechanism charged with determining compensation and providing assistance to Ukraine, for purposes that include the following: (A) Reconstruction and rebuilding efforts in Ukraine. (B) To provide humanitarian assistance to the people of Ukraine. (C) Such other purposes as the Secretary determines directly and effectively support the recovery of Ukraine and the welfare of the people of Ukraine. (2) Notification (A) In general The Secretary of State shall notify the appropriate congressional committees not fewer than 15 days before providing any funds from the Ukraine Support Fund to the Government of Ukraine or to any other person or international organization for the purposes described in paragraph (1). (B) Elements A notification under subparagraph (A) with respect to the provision of funds to the Government of Ukraine shall specify— (i) the amount of funds to be provided; (ii) the purpose for which such funds are provided; and (iii) the recipient. (e) Judicial review (1) In general The confiscation of Russian sovereign assets under subsection (b)(1) shall not be subject to judicial review. (2) Rule of construction Nothing in this subsection shall be construed to limit any private individual or entity from asserting due process claims in United States courts. (f) Exception for United States obligations under Vienna Conventions The authorities provided by this section may not be exercised in a manner inconsistent with the obligations of the United States under— (1) the Convention on Diplomatic Relations, done at Vienna April 18, 1961, and entered into force April 24, 1964 (23 UST 3227); (2) the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force on March 19, 1967 (21 UST 77); (3) the Agreement Regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947 (TIAS 1676); or (4) any other international agreement governing the use of force and establishing rights under international humanitarian law. (g) Sunset The authority to confiscate, liquidate, and transfer Russian sovereign assets under this section shall terminate on the earlier of— (1) the date that is 5 years after the date of the enactment of this Act; or (2) the date that is 120 days after the date on which the President determines and certifies to the appropriate congressional committees that— (A) hostilities between the Russian Federation and Ukraine have ceased; and (B) (i) full compensation has been made to Ukraine for harms resulting from the invasion of Ukraine by the Russian Federation; or (ii) the Russian Federation is participating in a bona fide international mechanism that, by agreement, will discharge the obligations of the Russian Federation to compensate Ukraine for all amounts determined to be owed to Ukraine. 105. International agreement to use Russian sovereign assets to provide for the reconstruction of Ukraine (a) In general The President shall take such action as the President determines necessary to seek to establish a common international compensation mechanism, in coordination with foreign partners including Ukraine, that shall include the establishment of an international fund to be known as the Common Ukraine Fund (1) establishing a register of damage to serve as a record of evidence and for assessment of the full costs of damages to Ukraine resulting from the invasion of Ukraine by the Russian Federation that began on February 24, 2022; (2) establishing a mechanism for compensating Ukraine for damages resulting from that invasion; (3) ensuring distribution of those assets or the proceeds of those assets based on determinations under that mechanism; and (4) taking such other actions as may be necessary to carry out this section. (b) Authorization for deposit in the Common Ukraine Fund Upon the President reaching an agreement or arrangement to establish a common international compensation mechanism pursuant to subsection (a), the Secretary of State shall transfer funds from the Ukraine Support Fund established under section 104(c) to the Common Ukraine Fund established under subsection (a). (c) Notifications (1) Agreement or arrangement The President shall notify the appropriate congressional committees not later than 30 days before entering into any new bilateral or multilateral agreement or arrangement under subsection (a). (2) Transfer The President shall notify the appropriate congressional committees not later than 30 days before any transfer to the Common Ukraine Fund established under subsection (a). (d) Limitation on transfer of funds No funds may be transferred to the Common Ukraine Fund established under subsection (a) unless the President certifies to the appropriate congressional committees that— (1) the institution housing the Common Ukraine Fund has a plan to ensure transparency and accountability for all funds transferred to and from the Common Ukraine Fund; and (2) the President has transmitted the plan required under paragraph (1) to the appropriate congressional committees in writing. (e) Joint resolution of disapproval No funds may be transferred to the Common Ukraine Fund established under subsection (a) if, within 30 days of receipt of the notification required under subsection (c)(2), a joint resolution is enacted prohibiting the transfer. (f) Report Not later than 90 days after the date of the enactment of this Act, and not less frequently than every 90 days thereafter, the President shall submit to the appropriate congressional committees a report that includes the following: (1) An accounting of funds in the Common Ukraine Fund established under subsection (a). (2) Any information regarding the disposition of the Common Ukraine Fund that has been transmitted to the President by the institution housing the Common Ukraine Fund during the period covered by the report. (3) A description of United States multilateral and bilateral diplomatic engagement with allies and partners of the United States that also have immobilized Russian sovereign assets to allow for compensation for Ukraine during the period covered by the report. (4) An outline of steps taken to carry out this section during the period covered by the report. 106. Report on use of confiscated Russian sovereign assets for reconstruction Not later than 90 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 contains— (1) the amount and source of Russian sovereign assets confiscated pursuant to subsection (b)(1) of section 104; (2) the amount and source of funds deposited into the Ukraine Support Fund under subsection (b)(2) of that section; and (3) a detailed description and accounting of how such funds were used to meet the purposes described in subsection (d) of that section. 107. Assessment by Secretary of State and Administrator of United States Agency for International Development on reconstruction and rebuilding needs of Ukraine (a) In general Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Administrator of the United States Agency for International Development, shall submit to the appropriate congressional committees an assessment of the most pressing needs of Ukraine for reconstruction, rebuilding, security assistance, and humanitarian aid. (b) Elements The assessment required by subsection (a) shall include the following: (1) An estimate of the rebuilding and reconstruction needs of Ukraine, as of the date of the assessment, resulting from the unlawful invasion of Ukraine by the Russian Federation, including— (A) a description of the sources and methods for the estimate; and (B) an identification of the locations or regions in Ukraine with the most pressing needs. (2) An estimate of the humanitarian needs, as of the date of the assessment, of the people of Ukraine, including Ukrainians residing inside the internationally recognized borders of Ukraine or outside those borders, resulting from the unlawful invasion of Ukraine by the Russian Federation. (3) An assessment of the extent to which the needs described in paragraphs (1) and (2) have been met or funded, by any source, as of the date of the assessment. (4) A plan to engage in robust multilateral and bilateral diplomacy to ensure that allies and partners of the United States, particularly in the European Union as Ukraine seeks accession, increase their commitment to Ukraine’s reconstruction. (5) An identification of which such needs should be prioritized, including any assessment or request by the Government of Ukraine with respect to the prioritization of such needs. 108. Exception relating to importation of goods (a) In general The authorities and requirements under this title shall not include the authority or a requirement to impose sanctions on the importation of goods. (b) Good defined In this section, the term good 109. Definitions In this title: (1) Appropriate congressional committees The term appropriate congressional committees (A) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives. (2) Financial institution The term financial institution (3) G 7 The term G7 (4) Russian sovereign asset The term Russian sovereign asset (A) Funds and other property of— (i) the Central Bank of the Russian Federation; (ii) the Russian Direct Investment Fund; or (iii) the Ministry of Finance of the Russian Federation. (B) Any sovereign funds of the Russian Federation held in a financial institution that is wholly owned or controlled by the Government of the Russian Federation. (C) Any other funds or other property wholly owned or controlled by the Government of the Russian Federation, including by any subdivision, agency, or instrumentality of that government. (5) United States The term United States (6) United States financial institution The term United States financial institution II Multilateral Sanctions Coordination 201. Statement of policy regarding coordination of multilateral sanctions with respect to the Russian Federation (a) In general In response to the Russian Federation’s unprovoked and illegal invasion of Ukraine, it is the policy of the United States that— (1) the United States, along with the European Union, the G7, Australia, and other willing allies and partners of the United States, should lead a coordinated international sanctions regime to freeze sovereign assets of the Russian Federation; (2) the head of the Office of Sanctions Coordination of the Department of State should engage in interagency and multilateral coordination with agencies of the European Union, the G7, Australia, and other allies and partners of the United States to ensure the ongoing implementation and enforcement of sanctions with respect to the Russian Federation in response to its invasion of Ukraine; (3) the Secretary of State, in consultation with the Secretary of the Treasury, should, to the extent practicable and consistent with relevant United States law, lead and coordinate with the European Union, the G7, Australia, and other allies and partners of the United States with respect to enforcement of sanctions imposed with respect to the Russian Federation; (4) the United States should provide relevant technical assistance, implementation guidance, and support relating to enforcement and implementation of sanctions imposed with respect to the Russian Federation; (5) where appropriate, the head of the Office of Sanctions Coordination, in coordination with the Bureau of Economic and Business Affairs and the Bureau of European and Eurasian Affairs of the Department of State and the Department of the Treasury, should seek private sector input regarding sanctions policy with respect to the Russian Federation and the implementation of and compliance with such sanctions imposed with respect to the Russian Federation; and (6) the Secretary of State, in coordination with the Secretary of the Treasury, should continue robust diplomatic engagement with allies and partners of the United States, including the European Union, the G7, and Australia, to encourage such allies and partners to impose such sanctions. (b) Authorization of appropriations (1) In general There is authorized to be appropriated to the Office of Sanctions Coordination of the Department of State $15,000,000 for each of fiscal years 2024, 2025, and 2026 to carry out this section. (2) Supplement not supplant The amounts authorized to be appropriated by paragraph (1) shall supplement and not supplant other amounts authorized to be appropriated for the Office of Sanctions Coordination. 202. Assessment of impact of Ukraine-related sanctions on the economy of the Russian Federation (a) Report and briefings At the times specified in subsection (b), the President shall submit a report and provide a briefing to the appropriate congressional committees on the impact on the economy of the Russian Federation of sanctions imposed by the United States and other countries with respect to the Russian Federation in response to the unlawful invasion of Ukraine by the Russian Federation. (b) Timing The President shall— (1) submit a report and provide a briefing described in subsection (a) to the appropriate congressional committees not later than 90 days after the date of the enactment of this Act; and (2) submit to the appropriate congressional committees a report described in subsection (a) every 180 days thereafter until the date that is 5 years after such date of enactment. (c) Elements Each report required by this section shall include— (1) an assessment of— (A) the impacts of the sanctions described in subsection (a), disaggregated by major economic sector, including the energy, aerospace and defense, shipping, banking, and financial sectors; (B) the macroeconomic impact of those sanctions on Russian, European, and global economy market trends, including shifts in global markets as a result of those sanctions; and (C) efforts by other countries or actors and offshore financial providers to facilitate sanctions evasion by the Russian Federation or take advantage of gaps in international markets resulting from the international sanctions regime in place with respect to the Russian Federation; and (2) recommendations for further sanctions enforcement measures based on trends described in paragraph (1)(B). 203. Information on voting practices in the United Nations with respect to the invasion of Ukraine by the Russian Federation Section 406(b) of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 ( 22 U.S.C. 2414a(b) (1) in paragraph (4), by striking Assembly on opposed by the United States Assembly on— (A) resolutions specifically related to Israel that are opposed by the United States; and (B) resolutions specifically related to the invasion of Ukraine by the Russian Federation. ; (2) in paragraph (5), by striking ; and (3) by redesignating paragraph (6) as paragraph (7); and (4) by inserting after paragraph (5) the following: (6) an analysis and discussion, prepared in consultation with the Secretary of State, of the extent to which member countries supported United States policy objectives in the Security Council and the General Assembly with respect to the invasion of Ukraine by the Russian Federation; and .

Summary: Rebuilding Economic Prosperity and Opportunity for Ukrainians Act or the REPO for Ukrainians Act This bill requires or authorizes various actions related to the confiscation and disposition of Russian sovereign assets (which include funds and other property of Russia's central bank, direct investment fund, or ministry of finance). Under the bill, the President must require U.S. financial institutions to notify the Department of the Treasury of any Russian sovereign assets located at such institutions. The President may confiscate any such assets subject to U.S. jurisdiction. Confiscated funds and the proceeds of liquidated property must be deposited into the Ukraine Support Fund established by the bill. The Ukraine Support Fund shall be used by the Department of State to compensate Ukraine for damages caused by the Russian invasion. The Ukraine Support Fund may also support an international body or mechanism for (1) reconstruction and rebuilding efforts in Ukraine, (2) humanitarian assistance to the Ukrainian people, or (3) other purposes which support the recovery of Ukraine and the welfare of the Ukrainian people. The bill also directs the President to seek to establish, with foreign partners, an international mechanism to provide compensation to Ukraine using the Ukraine Support Fund and Russian sovereign assets confiscated by foreign partners. Additionally, the bill sets policy on related topics, such as specifying that the United States should lead an international sanctions regime to freeze Russian sovereign assets in conjunction with allies and partners.