Short title

This Act may be cited as the

Ukraine Reconstruction Act of 2023

Findings

Congress finds the following:(1)The Russian Federation, aided and abetted by Belarus, has engaged in egregious and illegal behavior by invading Ukraine in violation of established norms of international law and the United Nations Charter.(2)As recognized by the General Assembly of the United Nations, the Group of Seven, the North Atlantic Parliamentary Assembly, and customary international law, the Russian Federation, joined by Belarus, has committed, and continues to commit, violations of international law and the United Nations Charter through its acts of aggression against the civil society of Ukraine, its violation of the civil rights of the Ukrainian peoples, and its unlawful destruction of Ukraine’s infrastructure and agriculture.(3)These actions by the Russian Federation and Belarus constitute an unusual and extraordinary threat to the national security and foreign policy of the United States and to the civilized world.

Definitions of Aggressor State and Affiliated Aggressor State

(a)

Aggressor state

The President shall designate the Russian Federation as an Aggressor State for purposes of this Act because of its violations of international law and the United Nations Charter with respect to Ukraine.(b)

Affiliated aggressor state

The President shall designate Belarus as an Affiliated Aggressor State for purposes of this Act and each other state the Government of which the President determines is providing material assistance to an Aggressor State.

Establishment of fund for reconstruction activities

As a consequence of the unwarranted and illegal actions of the Aggressor State against Ukraine beginning in 2014, the President shall—(1)exercise 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 property and interests in sovereign property of the Aggressor State, including any property owned by state-owned enterprises of such Aggressor State, 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 (except that the authority provided by this paragraph shall not include the authority to block any property subject to Article 22 of the Vienna Convention on Diplomatic Relations);(2)acting through the Secretary of the Treasury—(A)order the transfer of all assets blocked pursuant to paragraph (1) into such accounts as the Secretary of the Treasury determines appropriate to carry out the purposes of this Act;(B)transfer title to blocked assets from the Aggressor State to the United States and subsequently transfer such assets to such accounts as the Secretary of Treasury may determine appropriate for such purposes;(C)establish an international fund to hold assets donated by the United States and by other countries implementing similar sanctions with respect to the Aggressor State, to be used for the reconstruction of Ukraine; and(D)transfer assets described in subparagraph (A) and (B) to the international fund in such amounts and at such times as the Secretary of the Treasury, in consultation with the Secretary of State, may direct;(3)acting through the Secretary of State—(A)work in cooperation with other foreign countries to establish an international compensation tribunal to adjudicate, in accordance with established judicial norms and international accounting principles, claims presented by Ukraine on behalf of its individuals, entities, and governmental entities, or directly by Ukrainian individuals and entities, against the Aggressor State and Affiliated Aggressor States; and(B)take such steps, in cooperation with other foreign countries, as may be necessary to—(i)ensure that such tribunal is staffed, operated, and administered in accordance with established legal and accounting rules and governance procedures;(ii)make available amounts from the fund described in paragraph (2)(C) for the payment of reasonable expenses for the governance and operation of the tribunal and awards made by the tribunal;(iii)verify that the tribunal is operated transparently with respect to all awards or other fund transfers, filings, and decisions; and(iv)ensure that such tribunal is audited on a regular basis by an independent auditor, in accordance with standards set by the United States Financial Accounting Standards Board and International Accounting Standards Board, with the results of such audits made publicly available; and(4)in the case that an appropriate tribunal described in paragraph (3) is not timely established—(A)in consultation with the Secretary of the Treasury, establish a United States Fund for the Reconstruction of Ukraine;(B)transfer to such Fund assets of the Aggressor State blocked in accordance with paragraph (2)(B); and(C)in consultation with the Secretary of State, distribute these funds for the reconstruction of Ukraine in accordance with established practices and accounting procedures.

Imposition of sanctions with respect to affiliated aggressor states

(a)

In general

Notwithstanding any other provision of law, the President is authorized to exercise all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and this Act over the sovereign property of any Affiliated Aggressor State, including any property owned by state-owned enterprises of such Affiliated Aggressor State, 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.(b)

Authorization To transfer into fund

The President is authorized to transfer and otherwise treat any asset of an Affiliated Aggressor State blocked pursuant to the authority provided by subsection (a) in the same manner as assets of the Aggressor State blocked pursuant to section 4(1) are treated as provided for in section 4(2) and section 4(4).(c)

Exception

The authority provided by this section shall not include the authority to block any property subject to Article 22 of the Vienna Convention on Diplomatic Relations.

Reports

(a)

Audit of reconstruction funds

The Comptroller General shall regularly review and submit to the appropriate committees of Congress reports, which shall also be made publicly available, on—(1)the audits described in section 4(3)(B)(iv); or(2)if the tribunal referred to in such section is not timely established, the results of regular audits on all amounts distributed pursuant to section 4(4)(C).(b)

Joint report on activities

Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of State and the Secretary of the Treasury shall jointly submit to the appropriate committees of Congress a report on all activities taken pursuant to this Act.(c)

Appropriate committees of Congress

In this section, the term appropriate committees of Congress means—(1)the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and(2)the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

Assets free from attachment

Any and all assets subject to this Act shall be free from attachment in any civil action.

No causes of action against the United States

The President’s actions, and any actions by those to whom the President has delegated authority under this Act, do not create any right or benefit, substantive or procedural, enforceable at law or in equity by any party, including the Russian Federation, the Republic of Belarus, and any other country designated under this Act, against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Relation to other laws

The authorities granted by this Act do not abrogate, displace, or otherwise modify any and all applicable authorities which other provisions of law, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) may grant the President with respect to the assets of Aggressor States or Affiliated Aggressor States designated in accordance with this Act.

10.

Sunset

This Act and the authorities provided by this Act shall expire at midnight on December 31, 2030, except that such authorities may remain available to the extent necessary to ensure that all operations carried out under this Act are wound down in an orderly manner.

11.

State-owned enterprise defined

In this Act, the term state-owned enterprise with respect to a country means an entity—(1)organized under the laws of the country or any jurisdiction within the country; and(2)over which the government of the country exercises ownership, either by virtue of the government being the ultimate beneficial owner of the majority of voting shares or otherwise exercising an equivalent degree of control over the activities of the entity.