KREMLIN Act
Bill: S.4364 | Sponsor: Sen. Scott, Rick (R-FL)
Policy area: Government Operations and Politics

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

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keeping Russia's Energy and Military 
Liable for Invading its Neighbors Act'' or the ``KREMLIN Act''.

SEC. 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 subsection (b), 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) Humanitarian assistance, disaster relief, and national 
        security.--
                    (A) 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--
                            (i) is necessary for purposes of providing 
                        humanitarian assistance to the people of the 
                        Russian Federation;
                            (ii) is necessary for purposes of providing 
                        disaster relief and other urgent life-saving 
                        measures; or
                            (iii) is vital to the national security 
                        interests of the United States.
                    (B) 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 under subparagraph (A).
            (2) Office of foreign assets control licenses.--The 
        prohibition under subsection (a) does not apply to a person 
        that has a valid license to operate in the Russian Federation 
        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 with 
        respect to the Russian Federation.
            (3) American diplomatic mission in russia.--The prohibition 
        under subsection (a) does not apply to contracts related to the 
        operation and maintenance of the consular offices and 
        diplomatic posts of the United States Government in the Russian 
        Federation.
    (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 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 from Ukraine and cessation of military 
        hostilities in Ukraine that is accepted by the free and 
        independent Government of Ukraine;
            (2) poses no immediate military threat of aggression to any 
        member of the North Atlantic Treaty Organization; and
            (3) recognizes the right of the people of Ukraine to 
        independently and freely choose their own government.
    (e) Definitions.--In this section:
            (1) Agency or instrumentality of the government of the 
        russian federation.--The term ``agency or instrumentality of 
        the Government of the Russian Federation'' means an agency or 
        instrumentality of a foreign state as defined in section 
        1603(b) of title 28, United States Code, with each reference in 
        such section to ``a foreign state'' deemed to be a reference to 
        ``the Russian Federation''.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Armed Services, the Committee 
                on Foreign Relations, and the Committee on Homeland 
                Security and Governmental Affairs of the Senate; and
                    (B) the Committee on Armed Services, the Committee 
                on Foreign Affairs, and the Committee on Oversight and 
                Reform of the House of Representatives.
            (3) Business operations.--The term ``business operations'' 
        means the act of engaging in commerce in any form, including 
        acquiring, developing, maintaining, owning, selling, 
        possessing, leasing, or operating equipment, facilities, 
        personnel, products, services, personal property, real 
        property, or any other apparatus of business or commerce.
            (4) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 133 of title 41, United 
        States Code.
            (5) Fossil fuel company.--The term ``fossil fuel company'' 
        means a person that--
                    (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, oil, gas, or coal.
            (6) Government of the russian federation.--The term 
        ``Government of the Russian Federation'' includes the 
        government of any political subdivision of the Russian 
        Federation and any agency or instrumentality of the Government 
        of the Russian Federation.
            (7) Person.--The term ``person'' means--
                    (A) a natural person, corporation, company, 
                business association, partnership, society, trust, or 
                any other nongovernmental entity, organization, or 
                group;
                    (B) a 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))); and
                    (C) a successor, subunit, parent entity, or 
                subsidiary of, or an entity under common ownership or 
                control with, an entity described in subparagraph (A) 
                or (B).
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