Imposition of sanctions with respect to trade in Russian origin petroleum products

(a)

In general

Beginning on the date that is 90 days after the date of the enactment of this Act, the President shall impose the sanctions described in subsection (b) with respect to any foreign person that the Secretary of the Treasury, in consultation with the Secretary of State, determines—(1)is responsible for or complicit in, or has directly or indirectly engaged or attempted to engage in, the purchase or importation into any country of crude oil or petroleum products of Russian Federation origin;(2)has knowingly facilitated financial transactions related to an activity described in paragraph (1);(3)has materially assisted, sponsored, or provided material support for any activity described in paragraph (1) or (2) by any person with respect to which sanctions have been imposed under paragraph (1) or (2); or(4)is or has been a chief executive officer or member of the board of directors of any entity described in any of paragraphs (1) through (3).(b)

Sanctions described

The sanctions described in this subsection are the exercise all of the 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 property of a foreign person 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.(c)

Permissible exception frameworks

(1)

In general

The President may apply not more than 2 of the types of exceptions described in paragraph (2) with respect to the application of sanctions under subsection (a).(2)

Exceptions described

(A)

Exception for countries that isolate Russian funds and reduce purchases

(i)

In general

The President may apply an exception to the application of sanctions under subsection (a) with respect to the purchase or importation into a country of crude oil or petroleum products of Russian Federation origin if the President determines and certifies in writing to the appropriate congressional committees that—(I)any funds owed by the government of that country or persons of that country to the Russian Federation or to the sellers of crude oil or petroleum products of Russian Federation origin as a result of the purchase or importation will be—(aa)credited to an account located in that country; and(bb)used only to facilitate transactions in agricultural commodities, food, medicine, or medical devices between the Russian Federation and the country; and(II)the government of the country has committed to significantly reduce its purchases of crude oil and petroleum products of Russian Federation origin.(ii)

Renewal required

The authority to apply the exception under clause (i) shall expire if the President does not certify, not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, that—(I)the country has significantly reduced its volume of purchases of crude oil and petroleum products of Russian Federation origin during the preceding 180-day period; or(II)the price and supply of crude oil and petroleum products produced in countries other than the Russian Federation is not sufficient to permit purchasers of crude oil and petroleum products of Russian Federation origin to reduce significantly in volume their purchases from the Russian Federation.(iii)

Sanctions for misuse of account

Any foreign person responsible for or complicit in, or that has directly or indirectly engaged or attempted to engage in, transactions reliant on the funds in an account described in clause (i)(I) for any purpose other than to facilitate transactions in agricultural commodities, food, medicine, or medical devices between the Russian Federation and the country in which the account is located shall be subject to the sanctions described in subsection (b).(B)

Exception for deposits into account to support Ukraine

(i)

In general

The President may apply an exception to the application of sanctions under subsection (a) with respect to the purchase or importation into a country of crude oil or petroleum products of Russian Federation origin if a payment per barrel of such crude oil or petroleum products has been deposited into an account that the President has established for the benefit of Ukraine.(ii)

Guidance

The President may issue guidance and develop implementation tools that assist private sector entities in verifying that the payments described in clause (i) corresponding to specific purchases have been deposited in the account described in that clause.(iii)

Use of funds

(I)

In general

The funds in an account established as described in clause (i) shall be available only for—(aa)the purposes specified in section 104(f) of the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act (division F of Public Law 118–50; 22 U.S.C. 9521 note); and(bb)funding the purchase by the Government of Ukraine of defense articles for Ukraine to employ in response to Russian Federation aggression.(II)

Timely disbursement

A significant proportion of funds in an account established as described in clause (i) shall be disbursed not less frequently than every 90 days for the purposes described in subclause (I).(iv)

Limitations on transfers and expenditures of funds

(I)

Notification of transfers

(aa)

In general

The Secretary of State shall notify the appropriate congressional committees not fewer than 15 days before transferring any funds from an account established as described in clause (i) to any other account for the purposes described in clause (iii) or otherwise expending any of such funds for such purposes.(bb)

Elements

A notification under item (aa) shall specify—(AA)the amount of funds to be transferred or expended;(BB)the specific purpose for which the funds are transferred or expended; and(CC)the recipient of those funds.(II)

Certification of transparency and accountability

No funds may be transferred or otherwise expended from an account established as described in clause (i) unless the President submits to the appropriate congressional committees in writing a certification that a plan exists to ensure transparency and accountability for all funds transferred into and expended from any account receiving the funds.(III)

Joint resolution of disapproval

No funds may be transferred or expended pursuant to this clause if, within 15 days of receipt of the notification under subclause (I), a joint resolution is enacted into law prohibiting such transfer.(C)

Exception for countries supporting Ukraine

(i)

In general

The President may apply an exception to the application of sanctions under subsection (a) with respect to the purchase or importation into any country of crude oil or petroleum products of Russian Federation origin if the President determines and certifies in writing to the appropriate congressional committees that the government of that country is providing significant economic or military support to the Government of Ukraine.(ii)

Renewal required

The authority to apply the exception under clause (i) with respect to a country shall expire if the President does not certify, not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, that the government of the country is providing significant economic or military support to the Government of Ukraine.(D)

Temporary port-specific exceptions

(i)

In general

During the period beginning on the date of the enactment of this Act and ending on the date that is 270 days after such date of enactment, the President may apply an exception to the application of sanctions under subsection (a) for the purchase or the importation into any country of crude oil or petroleum products of Russian Federation exported from specific Russian Federation ports if the President submits to the appropriate congressional committees a report providing a justification for the exception.(ii)

Limitation

An exception applied under clause (i) may not cover, at any time, ports that are estimated to have cumulatively accounted for more than half of the oil export capacity of the Russian Federation in 2024.(3)

Sanctions related to crude oil and petroleum products sold above price cap without regard to Group of 7 nexus

(A)

In general

Any exception described in paragraph (2) that the President applies to the requirement to impose sanctions under subsection (a) shall not apply with respect to an activity described in subparagraph (B) if the activity facilitates the maritime transport of crude oil or petroleum products of Russian Federation origin purchased for an amount greater than the relevant price cap determined by the Secretary of the Treasury for crude oil or petroleum products of Russian Federation origin.(B)

Activities described

The activities described in this subparagraph are transporting, trading or commodities brokering, financing, shipping, insuring, flagging, or customs brokering related to the purchase or importation of crude oil or petroleum products of Russian Federation origin.(C)

Applicability to service providers based outside of group of 7 countries

Subparagraph (A) applies without regard to whether the person engaging in an activity described in subparagraph (B) is organized under the laws of or otherwise subject to the jurisdiction of a country that is a member of the Group of 7.(d)

Sunset

The provisions of this section, and any sanctions imposed under this section, shall terminate on the date that is 5 years after the date of the enactment of this Act.(e)

Definitions

In this section:(1)

Agricultural commodity

The term agricultural commodity has the meaning given such term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).(2)

Appropriate congressional committees

The term appropriate congressional committees means—(A)the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate; and(B)the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives.(3)

Defense article

The term defense article has the meaning given that term in section 47 of the Arms Export Control Act (22 U.S.C. 2794).(4)

Foreign person

The term foreign person means an individual or entity that is not a United States person.(5)

Knowingly

The term knowingly, with respect to conduct, a circumstance, or a result, means that a person had actual knowledge, or should have known, of the conduct, the circumstance, or the result.(6)

Medical device

The term medical device has the meaning given the term device in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).(7)

Medicine

The term medicine has the meaning given the term drug in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).(8)

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;(B)an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity; or(C)any person located in the United States.