[House Document 112-119]
[From the U.S. Government Printing Office]



112th Congress, 2d Session - - - - - - - - - - - - House Document 112-119


 
BLOCKING PROPERTY OF THE GOVERNMENT OF THE RUSSIAN FEDERATION RELATING 
 TO THE DISPOSITION OF HIGHLY ENRICHED URANIUM EXTRACTED FROM NUCLEAR 
                                WEAPONS

                               __________

                             COMMUNICATION

                                  from

                     THEPRESIDENTOFTHEUNITEDSTATES

                              transmitting

  A DECLARATION OF A NATIONAL EMERGENCY WITH RESPECT TO BLOCKING THE 
 PROPERTY OF THE GOVERNMENT OF THE RUSSIAN FEDERATION, PURSUANT TO 50 
                             U.S.C. 1703(b)




   June 27, 2012.--Referred to the Committee on Foreign Affairs and 
                         ordered to be printed
                                           The White House,
                                         Washington, June 25, 2012.
Hon. John Boehner,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: Pursuant to section 204(b) of the 
International Emergency Economic Powers Act (IEEPA), 50 U.S.C. 
1703(b), I hereby report that I have exercised my authority to 
declare a national emergency to deal with the threat posed to 
the United States by the risk of nuclear proliferation created 
by the accumulation in the Russian Federation of a large volume 
of weapons-usable fissile material.
    In Executive Order 13159 of June 21, 2000, the President 
found that this same risk constituted an unusual and 
extraordinary threat to the national security and foreign 
policy of the United States and declared a national emergency 
to deal with that threat. The United States and the Russian 
Federation had entered into a series of agreements that provide 
for the conversion of highly enriched uranium (HEU) extracted 
from Russian nuclear weapons into low enriched uranium (LEU) 
for use in commercial nuclear reactors. There were concerns 
that payments due to the Russian Federation under these 
agreements may be subject to attachment, garnishment, or other 
judicial process, in the United States, which could put 
implementation of such agreements at risk. In Executive Order 
13159, the President therefore ordered blocked all property and 
interests in property of the Government of the Russian 
Federation directly related to the implementation of the HEU 
Agreements so that it would be protected from the threat of 
attachment, garnishment, or other judicial process.
    In the Executive Order I have issued today, I find that the 
risk of nuclear proliferation created by the accumulation in 
the Russian Federation of a large volume of weapons-usable 
fissile material continues to constitute an unusual and 
extraordinary threat to the national security and foreign 
policy of the United States. I therefore declared a national 
emergency to address this threat and to continue the blocking 
of all property and interests in property of the Government of 
the Russian Federation directly related to the implementation 
of the HEU Agreements.
    A major national security goal of the United States is to 
ensure that fissile material removed from Russian nuclear 
weapons pursuant to various arms control and disarmament 
agreements is dedicated to peaceful uses, subject to 
transparency measures, and protected from diversion to 
activities of proliferation concern. The United States and the 
Russian Federation entered into an international agreement in 
February 1993 to deal with these issues as they relate to the 
disposition of HEU extracted from Russian nuclear weapons (the 
``HEU Agreement''). The HEU Agreement provides for 500 metric 
tons of HEU to be converted to LEU over a 20-year period. This 
is the equivalent of 20,000 nuclear warheads.
    Additional agreements were put in place to effectuate the 
HEU Agreement, including agreements and contracts on 
transparency, on the appointment of executive agents to assist 
in implementing the agreements, and on the disposition of LEU 
delivered to the United States (collectively, the ``HEU 
Agreements''). Under the HEU Agreements, the Russian Federation 
extracts HEU metal from nuclear weapons. That HEU is oxidized 
and blended down to LEU in the Russian Federation. The 
resulting LEU is shipped to the United States for fabrication 
into fuel for commercial reactors.
    The HEU Agreements provide for the Russian Federation to 
receive money and uranium hexafluoride in payment for each 
shipment of LEU converted from the Russian nuclear weapons. The 
money and uranium hexafluoride are transferred to the Russian 
Federation executive agent in the United States.
    The executive branch and the Congress have previously 
recognized and continue to recognize the threat posed to the 
United States national security from the risk of nuclear 
proliferation created by the accumulation of weapons-usable 
fissile material in the Russian Federation. This threat is the 
basis for significant programs aimed at Cooperative Threat 
Reduction and at controlling excess fissile material. The HEU 
Agreements are essential tools to accomplish these overall 
national security goals. The Congress has repeatedly 
demonstrated support for these agreements.
    Payments made to the Russian Federation pursuant to the HEU 
Agreements are integral to the operation of this key national 
security program. Uncertainty surrounding litigation and the 
possible attachment, garnishment, or other judicial process 
that could impede these payments could lead to a long-term 
suspension of the HEU Agreements, which creates the risk of 
nuclear proliferation. This is an unacceptable threat to the 
national security and foreign policy of the United States.
    Accordingly, I have concluded that all property and 
interests in property of the Government of the Russian 
Federation directly related to the implementation of the HEU 
Agreements should remain protected from the threat of 
attachment, garnishment, or other judicial process. I have, 
therefore, exercised my authority and issued an Executive Order 
that provides:
           except to the extent provided in 
        regulations, orders, directives, or licenses that may 
        be issued pursuant to the order, or that were issued 
        pursuant to Executive Order 13159 of June 21, 2000, all 
        property and interests in property of the Government of 
        the Russian Federation directly related to the 
        implementation of the HEU Agreements that are in the 
        United States, that hereafter come within the United 
        States, or hereafter come within the possession or 
        control of any United States persons, including any 
        foreign branch, are blocked and may not be transferred, 
        paid, exported, withdrawn, or otherwise dealt in;
           unless licensed or authorized pursuant to 
        the order, any attachment, judgment, decree, lien, 
        execution, garnishment, or other judicial process is 
        null and void with respect to any property or interest 
        in property blocked pursuant to the order; and
           that all heads of departments and agencies 
        of the United States Government shall continue to take 
        all appropriate measures within their authority to 
        further the full implementation of the HEU Agreements.
    The effect of this Executive Order is limited to property 
that is directly related to the implementation of the HEU 
Agreements. Such property will be clearly defined by the 
regulations, orders, directives, or licenses that will be 
issued pursuant to this Executive Order. I have delegated to 
the Secretary of the Treasury, in consultation with the 
Secretary of State, the authority to take such actions, 
including the promulgation of rules and regulations, and to 
employ all powers granted to the President by IEEPA as may be 
necessary to carry out the purposes of the order. All agencies 
of the United States Government are directed to take all 
appropriate measures within their authority to carry out the 
provisions of the order.
    I am enclosing a copy of the Executive Order I have issued.
            Sincerely,
                                                      Barack Obama.
                            Executive Order

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Blocking Property of the Government of the Russian Federation Relating 
 to the Disposition of Highly Enriched Uranium Extracted From Nuclear 
                                Weapons

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 
U.S.C. 1601 et seq.) (NEA), and section 301 of title 3, United 
States Code,
    I, BARACK OBAMA, President of the United States of America, 
in view of the policies underlying Executive Order 12938 of 
November 14, 1994, and Executive Order 13085 of May 26, 1998, 
and the restrictions put in place pursuant to Executive Order 
13159 of June 21, 2000, find that the risk of nuclear 
proliferation created by the accumulation of a large volume of 
weapons-usable fissile material in the territory of the Russian 
Federation continues to constitute an unusual and extraordinary 
threat to the national security and foreign policy of the 
United States, and hereby declare a national emergency to deal 
with that threat. I hereby order:
    Section 1. A major national security goal of the United 
States is to ensure that fissile material removed from Russian 
nuclear weapons pursuant to various arms control and 
disarmament agreements is dedicated to peaceful uses, subject 
to transparency measures, and protected from diversion to 
activities of proliferation concern. As reflected in Executive 
Order 13085, the full implementation of the Agreement Between 
the Government of the United States of America and the 
Government of the Russian Federation Concerning the Disposition 
of Highly Enriched Uranium Extracted from Nuclear Weapons, 
dated February 18, 1993, and related contracts and agreements 
(collectively, the ``HEU Agreements'') is essential to the 
attainment of this goal. The HEU Agreements provide for the 
conversion of approximately 500 metric tons of highly enriched 
uranium contained in Russian nuclear weapons into low-enriched 
uranium for use as fuel in commercial nuclear reactors. In 
furtherance of our national security goals, all heads of 
departments and agencies of the United States Government shall 
continue to take all appropriate measures within their 
authority to further the full implementation of the HEU 
Agreements.
    Sec. 2. Government of the Russian Federation assets 
directly related to the implementation of the HEU Agreements 
currently may be subject to attachment, judgment, decree, lien, 
execution, garnishment, or other judicial process, thereby 
jeopardizing the full implementation of the HEU Agreements to 
the detriment of U.S. foreign policy. In order to ensure the 
preservation and proper and complete transfer to the Government 
of the Russian Federation of all payments due to it under the 
HEU Agreements, and except to the extent provided in 
regulations, orders, directives, or licenses that may be issued 
pursuant to this order, or that were issued pursuant to 
Executive Order 13159 of June 21, 2000, all property and 
interests in property of the Government of the Russian 
Federation directly related to the implementation of the HEU 
Agreements that are in the United States, that hereafter come 
within the United States, or that are or hereafter come within 
the possession or control of any United States persons, 
including any foreign branch, are blocked and may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in. 
Unless licensed or authorized pursuant to this order, or 
Executive Order 13159 of June 21, 2000, any attachment, 
judgment, decree, lien, execution, garnishment, or other 
judicial process is null and void with respect to any property 
or interest in property blocked pursuant to this order.
    Sec. 3. (a) Any transaction that evades or avoids, has the 
purpose of evading or avoiding, causes a violation of, or 
attempts to violate any of the prohibitions set forth in this 
order is prohibited.
    (b) Any conspiracy formed to violate any of the 
prohibitions set forth in this order is prohibited.
    Sec. 4. For the purposes of this order:
    (a) the term ``person'' means an individual or entity;
    (b) the term ``entity'' means a partnership, association, 
trust, joint venture, corporation, group, subgroup, or other 
organization;
    (c) the term ``United States person'' means any United 
States citizen, permanent resident alien, entity organized 
under the laws of the United States or any jurisdiction within 
the United States (including foreign branches), or any person 
in the United States; and
    (d) the term ``Government of the Russian Federation'' means 
the Government of the Russian Federation, any political 
subdivision, agency, or instrumentality thereof, and any person 
owned or controlled by, or acting for or on behalf of, the 
Government of the Russian Federation.
    Sec. 5. (a) The Secretary of the Treasury, in consultation 
with the Secretary of State, the Secretary of Energy, and, as 
appropriate, other agencies, is hereby authorized to take such 
actions, including the promulgation of rules and regulations, 
and to employ all powers granted to the President by IEEPA, as 
may be necessary to carry out the purposes of this order. The 
Secretary of the Treasury may redelegate any of these functions 
to other officers and agencies of the United States Government 
consistent with applicable law. All agencies of the United 
States Government are hereby directed to take all appropriate 
measures within their statutory authority to carry out the 
provisions of this order.
    (b) Nothing contained in this order shall relieve a person 
from any requirement to obtain a license or other authorization 
from any department or agency of the United States Government 
in compliance with applicable laws and regulations subject to 
the jurisdiction of the department or agency.
    Sec. 6. The Secretary of the Treasury, in consultation with 
the Secretary of State, is hereby authorized to submit the 
recurring and final reports to the Congress on the national 
emergency declared in this order, consistent with section 
401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of 
IEEPA (50 U.S.C. 1703(c)).
    Sec. 7. This order is not intended to, and does not, create 
any right or benefit, substantive or procedural, enforceable at 
law or in equity by any party against the United States, its 
departments, agencies, or entities, its officers, employees, or 
agents, or any other person.

                                                      Barack Obama.
    The White House, June 25, 2012.