pI 114th CONGRESS 2d Session H. R. 5094 IN THE HOUSE OF REPRESENTATIVES April 28, 2016 Mr. Engel (for himself, Mr. Kinzinger of Illinois , Mr. Levin , Mr. Fitzpatrick , Ms. Kaptur , Mr. Abraham , Mr. Costa , Mr. Weber of Texas , Mr. Deutch , Mr. Pompeo , Mr. Cicilline , Mr. Shimkus , Mr. Keating , Mr. Bilirakis , Mr. Cohen , and Mr. Ribble ) introduced the following bill; which was referred to the Committee on Foreign Affairs , and in addition to the Committees on Financial Services , the Judiciary , and Ways and Means , 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 contain, reverse, and deter Russian aggression in Ukraine, to assist Ukraine’s democratic transition, and for other purposes.

1. Short title and table of contents (a) Short title This Act may be cited as the Stability and Democracy for Ukraine Act or STAND for Ukraine Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Statements of policy. Title I—Crimea annexation non-recognition Sec. 101. United States policy against recognition of territorial changes effected by force alone. Sec. 102. Prohibitions against United States recognition of the Russian Federation’s annexation of Crimea. Sec. 103. Codification of sanctions under certain Executive orders relating to Ukraine. Title II—Sanctions provisions Sec. 201. Prohibiting certain transactions with foreign sanctions evaders with respect to the Russian Federation. Sec. 202. Reports on certain foreign financial institutions. Sec. 203. Requirements relating to transfers of defense articles and defense services to the Russian Federation. Sec. 204. Amendments to Sergei Magnitsky Rule of Law Accountability Act of 2012. Title III—Other matters Sec. 301. Consortium to support increased private investment in Ukraine. Sec. 302. Strategy to respond to Russian Federation-supported information and propaganda efforts directed toward Russian-speaking communities in countries bordering the Russian Federation. 2. Statements of policy (a) In general It is the policy of the United States to further assist the Government of Ukraine in restoring its sovereignty and territorial integrity to contain, reverse, and deter Russian aggression in Ukraine. That policy shall be carried into effect, among other things, through a comprehensive effort, in coordination with allies and partners of the United States where appropriate, that includes sanctions, diplomacy, and assistance for the people of Ukraine intended to enhance their ability to consolidate a rule of law-based democracy with a free market economy and to exercise their right under international law to self-defense. (b) Additional statement of policy It is further the policy of the United States— (1) to use its voice, vote, and influence in international fora to encourage others to provide assistance that is similar to assistance described in subsection (a) to Ukraine; and (2) to ensure that any relevant sanctions relief for the Russian Federation is contingent on timely, complete, and verifiable implementation of the Minsk Agreements, especially the restoration of Ukraine’s control of the entirety of its eastern border with the Russian Federation in the conflict zone. I Crimea annexation non-recognition 101. United states policy against recognition of territorial changes effected by force alone Between the years of 1940 and 1991, the United States did not recognize the forcible incorporation and annexation of the three Baltic States of Lithuania, Latvia, and Estonia into the Soviet Union under a policy known as the Stimson Doctrine . 102. Prohibitions against United States recognition of the Russian Federation’s annexation of Crimea (a) In general In accordance with United States policy enumerated in section 101, no Federal department or agency should take any action or extend any assistance that recognizes or implies any recognition of the de jure or de facto sovereignty of the Russian Federation over Crimea, its airspace, or its territorial waters. (b) Documents portraying Crimea as part of Russian Federation In accordance with United States policy enumerated in section 101, the Government Publishing Office should not print any map, document, record, or other paper of the United States portraying or otherwise indicating Crimea as part of the territory of the Russian Federation. 103. Codification of sanctions under certain Executive orders relating to Ukraine (a) Codification of Executive orders (1) Executive Orders 13660 , 13661 , and 13662 United States sanctions provided for in the Executive orders described in subsection (b), imposed on or before April 6, 2014, and as in effect on the day before the date of the enactment of this Act, shall remain in effect until the date on which the President submits to the appropriate congressional committees a certification described in subsection (c). (2) Executive Order 13685 United States sanctions provided for in Executive Order 13685 (December 19, 2014; 79 Fed. Reg. 77357; relating to blocking property of certain persons and prohibiting certain transactions with respect to the Crimea region of Ukraine), as in effect on the day before the date of the enactment of this Act, shall remain in effect until the date on which the President submits to the appropriate congressional committees a certification described in subsection (c). (b) Executive orders described The Executive orders described in this subsection are the following: (1) Executive Order 13660 (March 6, 2014; 79 Fed. Reg. 13493; relating to blocking property of certain persons contributing to the situation in Ukraine). (2) Executive Order 13661 (March 16, 2014; 79 Fed. Reg. 15535; relating to blocking property of additional persons contributing to the situation in Ukraine). (3) Executive Order 13662 (March 20, 2014; 79 Fed. Reg. 16169; relating to blocking property of additional persons contributing to the situation in Ukraine). (c) Certification A certification described in this subsection is a certification of the President that— (1) Ukraine’s sovereignty over Crimea has been restored; or (2) the status of Crimea has been resolved, through an internationally supervised process, to the satisfaction of a democratically elected Government of Ukraine. (d) Rule of construction Nothing in this section shall be construed to restrict the authority of the President to impose additional United States sanctions with specific respect to the Russian Federation’s occupation of Crimea pursuant to the Executive orders described in subsections (a)(2) and (b). (e) Appropriate congressional committees In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives; and (2) Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. II Sanctions provisions 201. Prohibiting certain transactions with foreign sanctions evaders with respect to the Russian Federation The Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 ( Public Law 113–95 ; 22 U.S.C. 8901 et seq. ) is amended by adding at the end the following new section: 10. Prohibiting certain transactions with foreign sanctions evaders with respect to the Russian Federation (a) In general The President is authorized to impose with respect to a foreign person the sanctions described in subsection (b) if the President determines that the foreign person knowingly— (1) has materially violated, attempted to violate, conspired to violate, or caused a violation of any license, order, regulation, or prohibition contained in, or issued pursuant to any covered Executive order; or (2) has facilitated significant deceptive or structured transactions for or on behalf of any person subject to United States sanctions concerning the Russian Federation. (b) Sanctions described (1) In general The sanctions described in this subsection are the exercise of all powers granted to the President by the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) to the extent necessary to block and prohibit all transactions in all property and interests in property of a person determined by the President to be subject to subsection (a) if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person. (2) Exception (A) In general The authority to impose sanctions under paragraph (1) shall not include the authority to impose sanctions relating to the importation of goods. (B) Good defined In paragraph (A), the term good has the meaning given that term in section 16 of the Export Administration Act of 1979 ( 50 U.S.C. App. 2415 ) (as continued in effect pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. )). (3) Penalties A person that is subject to sanctions described in paragraph (1) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) to the same extent as a person that commits an unlawful act described in subsection (a) of that section. (c) Waiver The President may waive the application of sanctions under subsection (b) on a case-by-case for a period of not more than 120 days, and may renew that waiver for additional periods of not more than 120 days with respect to a person if the President determines that such a waiver is in the national interests of the United States and on or before the date on which the waiver takes effect, submits to the appropriate congressional committees a notice of and justification for the waiver. (d) Implementation authority The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section. (e) Regulatory authority The President shall issue such regulations, licenses, and orders as are necessary to carry out this section. (f) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives; and (B) Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) Covered Executive order The term covered Executive order means any of the following: (A) Executive Order 13660 (March 6, 2014; 79 Fed. Reg. 13493; relating to blocking property of certain persons contributing to the situation in Ukraine). (B) Executive Order 13661 (March 16, 2014; 79 Fed. Reg. 15535; relating to blocking property of additional persons contributing to the situation in Ukraine). (C) Executive Order 13662 (March 20, 2014; 79 Fed. Reg. 16169; relating to blocking property of additional persons contributing to the situation in Ukraine). (D) Executive Order 13685 (December 19, 2014; 79 Fed. Reg. 77357; relating to blocking property of certain persons and prohibiting certain transactions with respect to the Crimea region of Ukraine). (3) Foreign person The term foreign person means— (A) an individual who is not a United States person; (B) a corporation, partnership, or other nongovernmental entity which is not a United States person; (C) any official, representative, agent, or instrumentality of, or an individual working on behalf of a foreign government; or (D) a foreign government. (4) United States person The term United States person means— (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity, or any person in the United States. . 202. Reports on certain foreign financial institutions The Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 ( Public Law 113–95 ; 22 U.S.C. 8901 et seq. ) is amended by inserting after section 10 (as added by section 201 of this Act) the following new section: 11. Reports on certain foreign financial institutions (a) In general Not later than 30 days after the date of the enactment of this section, and every 180 days thereafter for a period not to exceed 2 years, the Secretary of State and the Secretary of the Treasury shall jointly submit to the appropriate congressional committees a report on— (1) foreign financial institutions that are in direct control of Government of Ukraine state-owned or controlled assets in a manner determined by the Secretary of State and the Secretary of the Treasury to be in violation of the sovereignty, independence, or territorial integrity of Ukraine; (2) foreign financial institutions determined by the Secretary of State and the Secretary of the Treasury to be complicit in illicit financial activity, including money laundering, terrorism and proliferation financing, transnational organized crime, or misappropriation of state assets, that are— (A) organized under the laws of the Russian Federation and have a capitalization of not less than $20,000,000,000; or (B) owned or controlled by a foreign person whose property or interests in property have been blocked pursuant to any covered Executive order; and (3) foreign financial institutions that are directly or indirectly assisting or otherwise aiding the violation of sovereignty, independence, and territorial integrity of Ukraine. (b) Form The report required to be submitted under this subsection shall be submitted in unclassified form but may include a classified annex. (c) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Foreign Affairs, the Committee on Financial Services, the Committee on Ways and Means, and the Committee on the Judiciary of the House of Representatives; and (B) Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on the Judiciary of the Senate. (2) Covered Executive order The term covered Executive order has the meaning given the term in section 10(f) of this Act. . 203. Requirements relating to transfers of defense articles and defense services to the Russian Federation (a) Statement of policy It is the policy of the United States to oppose the transfer of defense articles and defense services from any country that is a member of the North Atlantic Treaty Organization (NATO) to, or on behalf of, the Russian Federation, during any period in which the Russian Federation forcibly occupies the territory of Ukraine or of a NATO member country. (b) Adoption of NATO policy The President shall use the voice, vote, and influence of the United States in NATO to seek the adoption of a policy by NATO that is consistent with the policy of the United States specified in subsection (a). (c) Monitoring and identification of transfers (1) In general The President shall direct the heads of the appropriate departments and agencies of the United States to monitor all transfers of defense articles and defense services from NATO member countries to the Russian Federation and identify those transfers that are contrary to the policy of the United States specified in subsection (a). (2) Report (A) In general The President shall submit a written report to the chairmen and ranking members of the appropriate committees of Congress within 5 days of the receipt of information indicating that a transfer described in paragraph (1) has occurred. (B) Form The report required under subparagraph (A) shall be submitted in unclassified form but may include a classified annex. (d) Restrictions on transfers (1) In general If a NATO member country transfers, or allows a transfer by a person subject to its national jurisdiction of, a defense article or defense service on or after the date of the enactment of this Act that is intended for a military end-use or end-user and which makes a significant contribution to the military capabilities of the Russian Federation in contravention of the policy of the United States specified in subsection (a) and is identified pursuant to subsection (c), an application for a license or other authorization required under the Arms Export Control Act for the transfer of any defense article or defense service to, or on behalf of, that NATO member country shall be subject to a presumption of denial. (2) Effective period A presumption of denial shall apply to an application for a license or other authorization under paragraph (1) only during a period in which the President determines that the Russian Federation has forcibly occupied the territory of Ukraine or of a NATO member country. (3) National security waiver The President may waive the restriction on the transfer of any defense article or defense service to, or on behalf of, a NATO member country in paragraph (1) if the President— (A) determines that the waiver is in the national security interest of the United States; and (B) submits to the appropriate committees of Congress a report on the determination and the reasons for the determination. (4) Amendment to ITAR Not later than 30 days after the date of the enactment of this Act, the Secretary of State shall amend the International Trafficking in Arms Regulations for purposes of implementing this subsection. (e) Definitions In this section: (1) Appropriate committees of Congress The term appropriate committees of Congress means— (A) the Committee on Armed Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives; and (B) the Committee on Armed Services, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate. (2) Defense articles and defense services The terms defense article and defense service have the meanings given such terms in section 47 of the Arms Export Control Act ( 22 U.S.C. 2794 note). 204. Amendments to Sergei Magnitsky Rule of Law Accountability Act of 2012 (a) List of persons Section 404 of the Sergei Magnitsky Rule of Law Accountability Act of 2012 ( 22 U.S.C. 5811 note) is amended— (1) in the section heading, by striking gross violations and inserting serious abuses ; and (2) in subsection (a)(2)— (A) in the matter preceding subparagraph (A), by striking gross violations and inserting serious abuses ; and (B) in subparagraph (B), by inserting after Russia the following: or in any territory forcibly occupied or otherwise controlled by the Government of the Russian Federation . (b) Effective date The amendments made by subsection (a) take effect on the date of the enactment of this Act and apply with respect to updates of the list required to be submitted under section 404 of the Sergei Magnitsky Rule of Law Accountability Act of 2012 on or after such date of enactment. III Other matters 301. Consortium to support increased private investment in Ukraine (a) Findings Congress finds the following: (1) Private investment in Ukraine is essential for Ukraine’s long-term economic recovery, employment, and fiscal stability. (2) Private investment in Ukraine requires the availability of insurance to protect investors against loss due to armed conflict, political violence, expropriation, and other risks that constitute an obstacle to private investment. (3) It is in the United States national security interest to seek to establish an international consortium, with other national governments, multilateral organizations, and investors and insurers, to increase the availability of insurance to support increased private investment in Ukraine. (4) An international consortium would be an effective mechanism to spread the risk against loss among a broad group of governmental and private insurers. (b) Establishment The Secretary of State, after consultation with the Government of Ukraine, shall seek to establish an international consortium to support increased private investment in Ukraine and to provide for participation by the Government of the United States in such consortium. (c) Membership The consortium established pursuant to subsection (b) should be composed of the following members: (1) The Government of the United States, to include the Overseas Private Investment Corporation. (2) The national governments of other interested countries. (3) Appropriate multilateral organizations. (4) Private insurance companies and other appropriate private sector entities. (d) Duties (1) In general The consortium established pursuant to subsection (b) should issue insurance, upon such terms and conditions as the consortium may determine, to protect investors against the risk of loss of private investments in Ukraine. (2) Additional duties The consortium should— (A) ensure that members of the consortium share in issuing insurance and are liable for payments of claims by investors in proportion to each member’s agreed-upon share; (B) at a minimum, ensure that members of the consortium provide insurance against the risk of loss due to armed conflict, political violence, and expropriation in Ukraine; (C) provide reinsurance to entities that have issued or underwritten insurance to investors in Ukraine against the risk of loss; and (D) establish a procedure for processing, negotiating, and settling claims for losses incurred and should utilize, to the maximum extent possible, the resources of the members of the consortium to carry out such functions. (e) Role of OPIC Upon the request of the Secretary of State, the Overseas Private Investment Corporation should— (1) assist the Secretary of State in securing membership of private insurance companies and other appropriate private sector entities in the consortium; (2) participate in underwriting insurance consistent with the statutory provisions applicable to the Corporation; and (3) provide staff with relevant expertise to assist in establishing and administering the consortium, on a reimbursable basis. 302. Strategy to respond to Russian Federation-supported information and propaganda efforts directed toward Russian-speaking communities in countries bordering the Russian Federation (a) Sense of Congress It is the sense of Congress that the Broadcasting Board of Governors shall establish Crimean Tatar services subordinate to the Ukrainian language services and shall broadcast and direct Crimean Tatar language content into Crimea. (b) In general Not later than 60 days after the date of the enactment of this Act, the Secretary of State shall develop and implement a strategy to respond to Russian Federation-supported disinformation and propaganda efforts directed toward persons in countries bordering the Russian Federation. (c) Matters To be included The strategy required under subsection (b) should include the following: (1) Development of a response to propaganda and disinformation campaigns as an element of the ongoing crisis in Ukraine, specifically— (A) assistance in building the capacity of the Ukrainian military to document conflict zones and disseminate information in real time; (B) assistance in enhancing broadcast capacity with terrestrial television transmitters in Eastern Ukraine; and (C) media training for officials of the Government of Ukraine. (2) Establishment of a partnership with partner governments and private-sector entities to provide Russian-language entertainment and news content to broadcasters in Russian-speaking communities bordering the Russian Federation. (3) Assessment of the extent of Russian Federation influence in political parties, financial institutions, media organizations, and other entities seeking to exert political influence and sway public opinion in favor of Russian Federation policy across Europe. (d) Report The Secretary of State shall submit to the appropriate congressional committees a report on the strategy required under subsection (b) and its implementation. (e) Appropriate congressional committees In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and (2) the Committee on Foreign Relations and the Committee on Armed Services of the Senate.