H. R. 1646—95
Lease debt and $2,250,000,000 in debt as a result of credits
extended under title I of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1701 et seq.).
(b) PURPOSES.—The purposes of this subtitle are—
(1) to facilitate the accomplishment of the United States
objectives described in the findings set forth in subsection (a)
by providing for the use of a portion of the Russian Federation’s
foreign debt to fund nonproliferation programs, thus allowing
the use of additional resources for these purposes; and
(2) to help ensure that the resources made available to
the Russian Federation are targeted to the accomplishment
of the United States objectives described in the findings set
forth in subsection (a).
SEC. 1313. DEFINITIONS.
In this subtitle:
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term
‘‘appropriate congressional committees’’ means—
(A) the Committee on International Relations and the
Committee on Appropriations of the House of Representa-
tives; and
(B) the Committee on Foreign Relations and the Com-
mittee on Appropriations of the Senate.
(2) COST.—The term ‘‘cost’’ has the meaning given that
term in section 502(5) of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a(5)).
(3) RUSSIAN FEDERATION NONPROLIFERATION INVESTMENT
AGREEMENT
OR
AGREEMENT.—The term ‘‘Russian Federation
Nonproliferation Investment Agreement’’ or ‘‘Agreement’’ means
the agreement between the United States and the Russian
Federation entered into under section 1315(a).
(4) SOVIET-ERA DEBT.—The term ‘‘Soviet-era debt’’ means
debt owed as a result of loans or credits provided by the
United States (or any agency of the United States) to the
Union of Soviet Socialist Republics under the Lend Lease Act
of 1941 or the Commodity Credit Corporation Charter Act.
(5) STATE
SPONSOR
OF
INTERNATIONAL
TERRORISM.—The
term ‘‘state sponsor of international terrorism’’ means those
countries that have been determined by the Secretary of State,
for the purposes of section 40 of the Arms Export Control
Act, section 620A of the Foreign Assistance Act of 1961, or
section 6(j) of the Export Administration Act of 1979, to have
repeatedly provided support for acts of international terrorism.
SEC. 1314. AUTHORITY TO REDUCE THE RUSSIAN FEDERATION’S
SOVIET-ERA DEBT OBLIGATIONS TO THE UNITED STATES.
(a) AUTHORITY TO REDUCE DEBT.—
(1) IN GENERAL.—Upon the entry into force of a Russian
Federation Nonproliferation Investment Agreement, the Presi-
dent may reduce amounts of Soviet-era debt owed by the Rus-
sian Federation to the United States (or any agency or
instrumentality of the United States) that are outstanding as
of the last day of the fiscal year preceding the fiscal year
for which appropriations are available for the reduction of
debt, in accordance with this subtitle.
(2) LIMITATION.—The authority provided by paragraph (1)
shall be available only to the extent that appropriations for
the cost (as defined in section 502(5) of the Federal Credit
H. R. 1646—96
Reform Act of 1990) of reducing any debt pursuant to such
subsection are made in advance.
(3) SUPERSEDES EXISTING LAW.—The authority provided by
paragraph (1) may be exercised notwithstanding section 620(r)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(r)) or
section 321 of the International Development and Food Assist-
ance Act of 1975.
(b) IMPLEMENTATION.—
(1) DELEGATION OF AUTHORITY.—The President may dele-
gate any authority conferred upon the President in this subtitle
to the Secretary of State.
(2) ESTABLISHMENT OF TERMS AND CONDITIONS.—Consistent
with this subtitle, the President shall establish the terms and
conditions under which loans and credits may be reduced pursu-
ant to subsection (a).
(3) IMPLEMENTATION.—In exercising the authority of sub-
section (a), the President—
(A) shall notify—
(i) the Department of State, with respect to obliga-
tions of the former Soviet Union under the Lend Lease
Act of 1941; and
(ii) the Commodity Credit Corporation, with
respect to obligations of the former Soviet Union under
the Commodity Credit Corporation Act;
(B) shall direct the cancellation of old obligations and
the substitution of new obligations consistent with the Rus-
sian Federation Nonproliferation Investment Agreement;
and
(C) shall direct the appropriate agency to make an
adjustment in the relevant accounts to reflect the new
debt treatment.
(4) DEPOSIT
OF
REPAYMENTS.—All repayments of out-
standing loan amounts under subsection (a) that are not des-
ignated under a Russian Federation Nonproliferation Invest-
ment Agreement shall be deposited in the United States
Government accounts established for repayments of the original
obligations.
(5) NOT TREATED AS FOREIGN ASSISTANCE.—Any reduction
of Soviet-era debt pursuant to this subtitle shall not be consid-
ered assistance for the purposes of any provision of law limiting
assistance to a country.
(c) AUTHORIZATION OF APPROPRIATION.—
(1) IN GENERAL.—For the cost (as defined in section 502(5)
of the Federal Credit Reform Act of 1990) of modifying any
Soviet-era debt obligation pursuant to subsection (a), there
are authorized to be appropriated to the President such sums
as may be necessary.
(2) AVAILABILITY OF FUNDS.—Amounts appropriated pursu-
ant to paragraph (1) are authorized to remain available until
expended.
SEC. 1315. RUSSIAN FEDERATION NONPROLIFERATION INVESTMENT
AGREEMENT.
(a) IN GENERAL.—
(1) IN GENERAL.—The President is authorized to enter into
an agreement with the Russian Federation under which an
amount equal to the value of the debt reduced pursuant to
H. R. 1646—97
section 1314 will be used to promote the nonproliferation of
weapons of mass destruction and the means of delivering such
weapons. An agreement entered into under this section may
be referred to as the ‘‘Russian Federation Nonproliferation
Investment Agreement’’.
(2) CONGRESSIONAL
NOTIFICATION.—The President shall
notify the appropriate congressional committees at least 15
days in advance of the United States entering into a Russian
Federation Nonproliferation Investment Agreement.
(b) CONTENT
OF
THE AGREEMENT.—The Russian Federation
Nonproliferation Investment Agreement shall ensure that—
(1) an amount equal to the value of the debt reduced
pursuant to this subtitle will be made available by the Russian
Federation for agreed nonproliferation programs and projects;
(2) each program or project funded pursuant to the Agree-
ment will be approved by the President;
(3) the administration and oversight of nonproliferation
programs and projects will incorporate best practices from
established threat reduction and nonproliferation assistance
programs;
(4) each program or project funded pursuant to the Agree-
ment will be subject to monitoring and audits conducted by
or for the United States Government to confirm that agreed
funds are expended on agreed projects and meet agreed targets
and benchmarks;
(5) unobligated funds for investments pursuant to the
Agreement will not be diverted to other purposes;
(6) funds allocated to programs and projects pursuant to
the Agreement will not be subject to any taxation by the Rus-
sian Federation;
(7) all matters relating to the intellectual property rights
and legal liabilities of United States firms in any project will
be agreed upon before the expenditure of funds would be author-
ized for that project; and
(8) not less than 75 percent of the funds made available
for each nonproliferation program or project under the Agree-
ment will be spent in the Russian Federation.
(c) USE OF EXISTING MECHANISMS.—It is the sense of Congress
that, to the extent practicable, the boards and administrative
mechanisms of existing threat reduction and nonproliferation pro-
grams should be used in the administration and oversight of pro-
grams and projects under the Agreement.
(d) JOINT AUDITING.—It is the sense of Congress that the United
States and the Russian Federation should consider commissioning
the United States General Accounting Office and the Russian
Chamber of Accounts to conduct joint audits to ensure that the
funds saved by the Russian Federation as a result of any debt
reduction are used exclusively, efficiently, and effectively to imple-
ment agreed programs or projects pursuant to the Agreement.
(e) STRUCTURE OF THE AGREEMENT.—It is the sense of Congress
that the Agreement should provide for significant penalties—
(1) if funds obligated for approved programs or projects
are determined to have been misappropriated; and
(2) if the President is unable to make the certification
required by section 1317(a) for two consecutive years.
H. R. 1646—98
SEC. 1316. INDEPENDENT MEDIA AND THE RULE OF LAW.
Notwithstanding section 1315 (a)(1) and (b)(1), up to 10 percent
of the amount equal to the value of the debt reduced pursuant
to this subtitle may be used to promote a vibrant, independent
media sector and the rule of law in the Russian Federation through
an endowment to support the establishment of a ‘‘Center for an
Independent Press and the Rule of Law’’ in the Russian Federation,
which shall be directed by a joint United States-Russian Board
of Directors in which the majority of members, including the chair-
man, shall be United States personnel, and which shall be respon-
sible for management of the endowment, its funds, and the Center’s
programs.
SEC. 1317. RESTRICTION ON DEBT REDUCTION AUTHORITY.
(a) PROLIFERATION TO STATE SPONSORS OF TERRORISM.—Subject
to the provisions of subsection (c), the debt reduction authority
provided by section 1314 may not be exercised unless and until
the President certifies to the appropriate congressional committees
that the Russian Federation has made material progress in stem-
ming the flow of sensitive goods, technologies, material, and know-
how related to the design, development, and production of weapons
of mass destruction and the means to deliver them to state sponsors
of international terrorism.
(b) ANNUAL DETERMINATION.—If, in any annual report to Con-
gress submitted pursuant to section 1321, the President cannot
certify that the Russian Federation continues to meet the condition
required in subsection (a), then, subject to the provisions of sub-
section (c), the debt reduction authority provided by section 1314
may not be exercised unless and until such certification is made
to the appropriate congressional committees.
(c) PRESIDENTIAL
WAIVER.—The President may waive the
requirements of subsection (a) or (b) for a fiscal year if the
President—
(1) determines that application of the subsection for a fiscal
year would be counter to the national interest of the United
States; and
(2) so reports to the appropriate congressional committees.
SEC. 1318. DISCUSSION OF RUSSIAN FEDERATION DEBT REDUCTION
FOR 
NONPROLIFERATION 
WITH 
OTHER 
CREDITOR
STATES.
It is the sense of Congress that the President and such other
appropriate officials as the President may designate should pursue
discussions with other creditor states with the objectives of—
(1) ensuring that other advanced industrial democracies,
especially the largest holders of Soviet-era Russian debt, dedi-
cate significant proportions of their bilateral official debt with
the Russian Federation or equivalent amounts of direct assist-
ance to the G–8 Global Partnership against the Spread of
Weapons and Materials of Mass Destruction, as agreed upon
in the Statement by G–8 Leaders on June 27, 2002; and
(2) reaching agreement, as appropriate, to establish a uni-
fied Russian Federation official debt reduction fund to manage
and provide financial transparency for the resources provided
by creditor states through debt reductions.