[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5094 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 5094

To contain, reverse, and deter Russian aggression in Ukraine, to assist 
        Ukraine's democratic transition, and for other purposes.


_______________________________________________________________________


                    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.

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

SECTION 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.

SEC. 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.

               TITLE I--CRIMEA ANNEXATION NON-RECOGNITION

SEC. 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''.

SEC. 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.

SEC. 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.

                     TITLE II--SANCTIONS PROVISIONS

SEC. 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:

``SEC. 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.''.

SEC. 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:

``SEC. 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.''.

SEC. 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).

SEC. 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.

                        TITLE III--OTHER MATTERS

SEC. 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.

SEC. 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.
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