KREMLIN Act

To prohibit contracting with persons that have business operations with the Government of the Russian Federation or the Russian energy sector, and for other purposes. 1. Short title This Act may be cited as the Keeping Russia’s Energy and Military Liable for Invading its Neighbors Act KREMLIN Act 2. Prohibition on contracting with persons that have business operations with the Government of the Russian Federation or the Russian energy sector (a) Prohibition Except as provided under subsections (b), (c), and (d), the head of an executive agency may not enter into a contract for the procurement of goods or services with any person that has business operations with— (1) an authority of the Government of the Russian Federation; or (2) a fossil fuel company that operates in the Russian Federation, except if the fossil fuel company transports oil or gas— (A) through the Russian Federation for sale outside of the Russian Federation; and (B) that was extracted from a country other than the Russian Federation with respect to the energy sector of which the President has not imposed sanctions as of the date on which the contract is awarded. (b) Exceptions (1) In general The prohibition under subsection (a) does not apply to a contract that the head of an executive agency and the Secretary of State jointly determine— (A) is necessary— (i) for purposes of providing humanitarian assistance to the people of Russia; or (ii) for purposes of providing disaster relief and other urgent life-saving measures; or (B) is vital to the national security interests of the United States. (2) Notification requirement The head of an executive agency shall notify the appropriate congressional committees of any contract entered into on the basis of an exception provided for under paragraph (1). (3) Office of foreign assets control licenses The prohibition in subsection (a) shall not apply to a person or entity that has a valid license to operate in Russia issued by the Office of Foreign Assets Control of the Department of the Treasury or is otherwise authorized to operate notwithstanding the imposition of sanctions. (4) American diplomatic mission in Russia The prohibition in subsection (a) shall not apply to contracts related to the operation and maintenance of the United States Government’s consular offices and diplomatic posts in Russia. (c) Applicability This section shall take effect on the date of the enactment of this Act and apply with respect to any contract entered into on or after such effective date. (d) Sunset This section shall terminate on the date on which the President submits to the appropriate congressional committees a certification in writing that contains a determination of the President that the Russian Federation— (1) has reached an agreement relating to the withdrawal of Russian forces and cessation of military hostilities that is accepted by the free and independent Government of Ukraine; (2) poses no immediate military threat of aggression to any North Atlantic Treaty Organization member; and (3) recognizes the right of the people of Ukraine to independently and freely choose their own government. (e) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees (A) the Committee on Oversight and Reform, the Committee on Armed Services, and the Committee on Foreign Affairs of the House of Representatives; and (B) the Committee on Homeland Security and Governmental Affairs, the Committee on Armed Services, and the Committee on Foreign Relations of the Senate. (2) Business operations The term business operations (3) Executive agency The term executive agency (4) Fossil fuel company The term fossil fuel company (A) carries out oil, gas, or coal exploration, development, or production activities; (B) processes or refines oil, gas, or coal; or (C) transports, or constructs facilities for the transportation of, Russian oil, gas, or coal. (5) Government of the Russian Federation The term Government of the Russian Federation agency or instrumentality of the Government of the Russian Federation a foreign state Russia (6) Person The term person (A) a natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; (B) any governmental entity or instrumentality of a government, including a multilateral development institution (as defined in section 1701(c)(3) of the International Financial Institutions Act ( 22 U.S.C. 262r(c)(3) (C) any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subparagraph (A) or (B).

Summary: Keeping Russia's Energy and Military Liable for Invading its Neighbors Act or the KREMLIN Act This bill temporarily prohibits federal agencies from contracting with persons that have business operations with the government of Russia or with fossil fuel companies that operate there, with exceptions where necessary to provide humanitarian assistance or disaster relief or where vital to U.S. national security interests. The bill terminates the prohibition when the President submits to specified congressional committees a written certification determining that Russia has reached an agreement relating to the withdrawal of Russian forces and cessation of military hostilities that is accepted by the Ukrainian government, poses no immediate military threat of aggression to any North Atlantic Treaty Organization member, and recognizes the right of the people of Ukraine to independently and freely choose their own government.