[Congressional Record Volume 158, Number 147 (Friday, November 16, 2012)]
[House]
[Pages H6401-H6409]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 RUSSIA AND MOLDOVA JACKSON-VANIK REPEAL AND SERGEI MAGNITSKY RULE OF 
                     LAW ACCOUNTABILITY ACT OF 2012

  Mr. BURTON OF Indiana. Madam Speaker, pursuant to House Resolution 
808, I call up the bill (H.R. 6156) to authorize the extension of 
nondiscriminatory treatment (normal trade relations treatment) to 
products of the Russian Federation and Moldova and to require reports 
on the compliance of the Russian Federation with its obligations as a 
member of the World Trade Organization, and for other purposes.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore (Mrs. Biggert). Pursuant to House Resolution 
808, the amendment in the nature of a substitute consisting of the text 
of Rules Committee Print 112-33 is adopted and the bill, as amended, is 
considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 6156

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Russia and 
     Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law 
     Accountability Act of 2012''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

  TITLE I--PERMANENT NORMAL TRADE RELATIONS FOR THE RUSSIAN FEDERATION

Sec. 101. Findings.
Sec. 102. Termination of application of title IV of the Trade Act of 
              1974 to products of the Russian Federation.

TITLE II--TRADE ENFORCEMENT MEASURES RELATING TO THE RUSSIAN FEDERATION

Sec. 201. Reports on implementation by the Russian Federation of 
              obligations as a member of the World Trade Organization 
              and enforcement actions by the United States Trade 
              Representative.
Sec. 202. Promotion of the rule of law in the Russian Federation to 
              support United States trade and investment.
Sec. 203. Reports on laws, policies, and practices of the Russian 
              Federation that discriminate against United States 
              digital trade.
Sec. 204. Efforts to reduce barriers to trade imposed by the Russian 
              Federation.

        TITLE III--PERMANENT NORMAL TRADE RELATIONS FOR MOLDOVA

Sec. 301. Findings.
Sec. 302. Termination of application of title IV of the Trade Act of 
              1974 to products of Moldova.

   TITLE IV--SERGEI MAGNITSKY RULE OF LAW ACCOUNTABILITY ACT OF 2012

Sec. 401. Short title.
Sec. 402. Findings; Sense of Congress.
Sec. 403. Definitions.
Sec. 404. Identification of persons responsible for the detention, 
              abuse, and death of Sergei Magnitsky and other gross 
              violations of human rights.
Sec. 405. Inadmissibility of certain aliens.
Sec. 406. Financial measures.
Sec. 407. Report to Congress.

  TITLE I--PERMANENT NORMAL TRADE RELATIONS FOR THE RUSSIAN FEDERATION

     SEC. 101. FINDINGS.

       Congress finds the following:
       (1) The Russian Federation allows its citizens the right 
     and opportunity to emigrate, free of any heavy tax on 
     emigration or on the visas or other documents required for 
     emigration and free of any tax, levy, fine, fee, or other 
     charge on any citizens as a consequence of the desire of 
     those citizens to emigrate to the country of their choice.
       (2) The Russian Federation has been found to be in full 
     compliance with the freedom of emigration requirements under 
     title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.) 
     since 1994.
       (3) The Russian Federation has received normal trade 
     relations treatment since concluding a bilateral trade 
     agreement with the United States that entered into force in 
     1992.
       (4) On December 16, 2011, the Ministerial Conference of the 
     World Trade Organization invited the Russian Federation to 
     accede to the World Trade Organization.

     SEC. 102. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE 
                   ACT OF 1974 TO PRODUCTS OF THE RUSSIAN 
                   FEDERATION.

       (a) Presidential Determinations and Extension of 
     Nondiscriminatory Treatment.--Notwithstanding any provision 
     of title IV of the Trade Act of 1974 (19 U.S.C. 2431 et 
     seq.), the President may--
       (1) determine that such title should no longer apply to the 
     Russian Federation; and
       (2) after making a determination under paragraph (1) with 
     respect to the Russian Federation, proclaim the extension of 
     nondiscriminatory treatment (normal trade relations 
     treatment) to the products of the Russian Federation.
       (b) Effective Date of Nondiscriminatory Treatment.--The 
     extension of nondiscriminatory treatment to the products of 
     the Russian Federation pursuant to subsection (a) shall be 
     effective not sooner than the effective date of the accession 
     of the Russian Federation to the World Trade Organization.
       (c) Termination of Applicability of Title IV.--On and after 
     the effective date under subsection (b) of the extension of 
     nondiscriminatory treatment to the products of the Russian 
     Federation, title IV of the Trade Act of 1974 (19 U.S.C. 2431 
     et seq.) shall cease to apply to the Russian Federation.

TITLE II--TRADE ENFORCEMENT MEASURES RELATING TO THE RUSSIAN FEDERATION

     SEC. 201. REPORTS ON IMPLEMENTATION BY THE RUSSIAN FEDERATION 
                   OF OBLIGATIONS AS A MEMBER OF THE WORLD TRADE 
                   ORGANIZATION AND ENFORCEMENT ACTIONS BY THE 
                   UNITED STATES TRADE REPRESENTATIVE.

       (a) Reports on Implementation.--
       (1) In general.--Not later than one year after the 
     effective date under section 102(b) of the extension of 
     nondiscriminatory treatment to the products of the Russian 
     Federation, and annually thereafter, the United States Trade 
     Representative shall submit to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives a report assessing the following:
       (A) The extent to which the Russian Federation is 
     implementing the WTO Agreement (as defined in section 2 of 
     the Uruguay Round Agreements Act (19 U.S.C. 3501)) and the 
     following agreements annexed to that Agreement:
       (i) The Agreement on the Application of Sanitary and 
     Phytosanitary Measures (referred to in section 101(d)(3) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(3))).
       (ii) The Agreement on Trade-Related Aspects of Intellectual 
     Property Rights (referred to in section 101(d)(15) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15))).
       (B) The progress made by the Russian Federation in acceding 
     to, and the extent to which the Russian Federation is 
     implementing, the following:
       (i) The Ministerial Declaration on Trade in Information 
     Technology Products of the World Trade Organization, agreed 
     to at Singapore December 13, 1996 (commonly referred to as 
     the ``Information Technology Agreement'') (or a successor 
     agreement).
       (ii) The Agreement on Government Procurement (referred to 
     in section 101(d)(17) of the Uruguay Round Agreements Act (19 
     U.S.C. 3511(d)(17))).
       (2) Plan for action by trade representative.--
       (A) In general.--If, in preparing a report required by 
     paragraph (1), the Trade Representative believes that the 
     Russian Federation is not fully implementing an agreement 
     specified in subparagraph (A) or (B) of that paragraph or 
     that the Russian Federation is not making adequate progress 
     in acceding to an agreement specified in subparagraph (B) of 
     that paragraph, the Trade Representative shall, except as 
     provided in subparagraph (B) of this paragraph, include in 
     the report a description of the actions the Trade 
     Representative plans to take to encourage the Russian 
     Federation to improve its implementation of the agreement or 
     increase its progress in acceding to the agreement, as the 
     case may be.
       (B) Classified information.--If any information regarding a 
     planned action referred to in subparagraph (A) is 
     classifiable under Executive Order 13526 (75 Fed. Reg. 707; 
     relating to classified national security information) or a 
     subsequent Executive order, the Trade Representative shall 
     report that information to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives by--
       (i) including the information in a classified annex to the 
     report required by paragraph (1); or
       (ii) consulting with the Committee on Finance and the 
     Committee on Ways and Means with respect to the information 
     instead of including the information in the report or a 
     classified annex to the report.
       (3) Public comments.--
       (A) In general.--In developing the report required by 
     paragraph (1), the Trade Representative shall provide an 
     opportunity for the public to comment, including by holding a 
     public hearing.
       (B) Publication in federal register.--The Trade 
     Representative shall publish notice of the opportunity to 
     comment and hearing required by subparagraph (A) in the 
     Federal Register.
       (b) Report on Enforcement Actions Taken by Trade 
     Representative.--Not later than 180 days after the effective 
     date under section 102(b) of the extension of 
     nondiscriminatory treatment to the products of the Russian 
     Federation, and annually thereafter, the United States Trade 
     Representative shall submit to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives a report describing the enforcement 
     actions taken by the Trade Representative against the

[[Page H6402]]

     Russian Federation to ensure the full compliance of the 
     Russian Federation with its obligations as a member of the 
     World Trade Organization, including obligations under 
     agreements with members of the Working Party on the accession 
     of the Russian Federation to the World Trade Organization.

     SEC. 202. PROMOTION OF THE RULE OF LAW IN THE RUSSIAN 
                   FEDERATION TO SUPPORT UNITED STATES TRADE AND 
                   INVESTMENT.

       (a) Reports on Promotion of Rule of Law.--Not later than 
     one year after the effective date under section 102(b) of the 
     extension of nondiscriminatory treatment to the products of 
     the Russian Federation, and annually thereafter, the United 
     States Trade Representative and the Secretary of State shall 
     jointly submit to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives a report--
       (1) on the measures taken by the Trade Representative and 
     the Secretary and the results achieved during the year 
     preceding the submission of the report with respect to 
     promoting the rule of law in the Russian Federation, 
     including with respect to--
       (A) strengthening formal protections for United States 
     investors in the Russian Federation, including through the 
     negotiation of a new bilateral investment treaty;
       (B) advocating for United States investors in the Russian 
     Federation, including by promoting the claims of United 
     States investors in Yukos Oil Company;
       (C) encouraging all countries that are parties to the 
     Convention on Combating Bribery of Foreign Public Officials 
     in International Business Transactions of the Organisation 
     for Economic Co-operation and Development, done at Paris 
     December 17, 1997 (commonly referred to as the ``OECD Anti-
     Bribery Convention''), including the Russian Federation, to 
     fully implement their commitments under the Convention to 
     prevent overseas business bribery by the nationals of those 
     countries;
       (D) promoting a customs administration, tax administration, 
     and judiciary in the Russia Federation that are free of 
     corruption; and
       (E) increasing cooperation between the United States and 
     the Russian Federation to expand the capacity for civil 
     society organizations to monitor, investigate, and report on 
     suspected instances of corruption; and
       (2) that discloses the status of any pending petition for 
     espousal filed with the Secretary by a United States investor 
     in the Russian Federation.
       (b) Anti-Bribery Reporting and Assistance.--
       (1) In general.--The Secretary of Commerce shall establish 
     and maintain a dedicated phone hotline and secure website, 
     accessible from within and outside the Russian Federation, 
     for the purpose of allowing United States entities--
       (A) to report instances of bribery, attempted bribery, or 
     other forms of corruption in the Russian Federation that 
     impact or potentially impact their operations; and
       (B) to request the assistance of the United States with 
     respect to issues relating to corruption in the Russian 
     Federation.
       (2) Report required.--
       (A) In general.--Not later than one year after the 
     effective date under section 102(b) of the extension of 
     nondiscriminatory treatment to the products of the Russian 
     Federation, and annually thereafter, the Secretary of 
     Commerce shall submit to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives a report that includes the following:
       (i) The number of instances in which bribery, attempted 
     bribery, or other forms of corruption have been reported 
     using the hotline or website established pursuant to 
     paragraph (1).
       (ii) A description of the regions in the Russian Federation 
     in which those instances are alleged to have occurred.
       (iii) A summary of actions taken by the United States to 
     provide assistance to United States entities pursuant to 
     paragraph (1)(B).
       (iv) A description of the efforts taken by the Secretary to 
     inform United States entities conducting business in the 
     Russian Federation or considering conducting business in the 
     Russian Federation of the availability of assistance through 
     the hotline and website.
       (B) Confidentiality.--The Secretary shall not include in 
     the report required by subparagraph (A) the identity of a 
     United States entity that reports instances of bribery, 
     attempted bribery, or other forms of corruption in the 
     Russian Federation or requests assistance pursuant to 
     paragraph (1).

     SEC. 203. REPORTS ON LAWS, POLICIES, AND PRACTICES OF THE 
                   RUSSIAN FEDERATION THAT DISCRIMINATE AGAINST 
                   UNITED STATES DIGITAL TRADE.

       Section 181(a) of the Trade Act of 1974 (19 U.S.C. 2241(a)) 
     is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following:
       ``(3) Inclusion of certain discriminatory laws, policies, 
     and practices of the russian federation.--For calender year 
     2012 and each succeeding calendar year, the Trade 
     Representative shall include in the analyses and estimates 
     under paragraph (1) an identification and analysis of any 
     laws, policies, or practices of the Russian Federation that 
     deny fair and equitable market access to United States 
     digital trade.''.

     SEC. 204. EFFORTS TO REDUCE BARRIERS TO TRADE IMPOSED BY THE 
                   RUSSIAN FEDERATION.

       The United States Trade Representative shall continue to 
     pursue the reduction of barriers to trade imposed by the 
     Russian Federation on articles exported from the United 
     States to the Russian Federation through efforts--
       (1) to negotiate a bilateral agreement under which the 
     Russian Federation will accept the sanitary and phytosanitary 
     measures of the United States as equivalent to the sanitary 
     and phytosanitary measures of the Russian Federation; and
       (2) to obtain the adoption by the Russian Federation of an 
     action plan for providing greater protections for 
     intellectual property rights than the protections required by 
     the Agreement on Trade-Related Aspects of Intellectual 
     Property Rights (referred to in section 101(d)(15) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15))).

        TITLE III--PERMANENT NORMAL TRADE RELATIONS FOR MOLDOVA

     SEC. 301. FINDINGS.

       Congress finds the following:
       (1) Moldova allows its citizens the right and opportunity 
     to emigrate, free of any heavy tax on emigration or on the 
     visas or other documents required for emigration and free of 
     any tax, levy, fine, fee, or other charge on any citizens as 
     a consequence of the desire of those citizens to emigrate to 
     the country of their choice.
       (2) Moldova has been found to be in full compliance with 
     the freedom of emigration requirements under title IV of the 
     Trade Act of 1974 (19 U.S.C. 2431 et seq.) since 1997.
       (3) Moldova acceded to the World Trade Organization on July 
     26, 2001.

     SEC. 302. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE 
                   ACT OF 1974 TO PRODUCTS OF MOLDOVA.

       (a) Presidential Determinations and Extension of 
     Nondiscriminatory Treatment.--Notwithstanding any provision 
     of title IV of the Trade Act of 1974 (19 U.S.C. 2431 et 
     seq.), the President may--
       (1) determine that such title should no longer apply to 
     Moldova; and
       (2) after making a determination under paragraph (1) with 
     respect to Moldova, proclaim the extension of 
     nondiscriminatory treatment (normal trade relations 
     treatment) to the products of Moldova.
       (b) Termination of Applicability of Title IV.--On and after 
     the date on which the President extends nondiscriminatory 
     treatment to the products of Moldova pursuant to subsection 
     (a), title IV of the Trade Act of 1974 (19 U.S.C. 2431 et 
     seq.) shall cease to apply to Moldova.

   TITLE IV--SERGEI MAGNITSKY RULE OF LAW ACCOUNTABILITY ACT OF 2012

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Sergei Magnitsky Rule of 
     Law Accountability Act of 2012''.

     SEC. 402. FINDINGS; SENSE OF CONGRESS.

       (a) Findings.--Congress finds the following:
       (1) The United States aspires to a mutually beneficial 
     relationship with the Russian Federation based on respect for 
     human rights and the rule of law, and supports the people of 
     the Russian Federation in their efforts to realize their full 
     economic potential and to advance democracy, human rights, 
     and the rule of law.
       (2) The Russian Federation--
       (A) is a member of the United Nations, the Organization for 
     Security and Co-operation in Europe, the Council of Europe, 
     and the International Monetary Fund;
       (B) has ratified the Convention against Torture and Other 
     Cruel, Inhuman or Degrading Treatment or Punishment, the 
     International Covenant on Civil and Political Rights, and the 
     United Nations Convention against Corruption; and
       (C) is bound by the legal obligations set forth in the 
     European Convention on Human Rights.
       (3) States voluntarily commit themselves to respect 
     obligations and responsibilities through the adoption of 
     international agreements and treaties, which must be observed 
     in good faith in order to maintain the stability of the 
     international order. Human rights are an integral part of 
     international law, and lie at the foundation of the 
     international order. The protection of human rights, 
     therefore, particularly in the case of a country that has 
     incurred obligations to protect human rights under an 
     international agreement to which it is a party, is not left 
     exclusively to the internal affairs of that country.
       (4) Good governance and anti-corruption measures are 
     instrumental in the protection of human rights and in 
     achieving sustainable economic growth, which benefits both 
     the people of the Russian Federation and the international 
     community through the creation of open and transparent 
     markets.
       (5) Systemic corruption erodes trust and confidence in 
     democratic institutions, the rule of law, and human rights 
     protections. This is the case when public officials are 
     allowed to abuse their authority with impunity for political 
     or financial gains in collusion with private entities.
       (6) The Russian nongovernmental organization INDEM has 
     estimated that bribes by individuals and businesses in the 
     Russian Federation amount to hundreds of billions of dollars 
     a year, an increasing share of the country's gross domestic 
     product.
       (7) Sergei Leonidovich Magnitsky died on November 16, 2009, 
     at the age of 37, in Matrosskaya Tishina Prison in Moscow, 
     Russia, and is survived by a mother, a wife, and 2 sons.
       (8) On July 6, 2011, Russian President Dimitry Medvedev's 
     Human Rights Council announced the results of its independent 
     investigation into the death of Sergei Magnitsky. The Human 
     Rights Council concluded that Sergei Magnitsky's arrest and 
     detention was illegal; he was denied access to justice by the 
     courts and prosecutors of the Russian Federation; he was 
     investigated by the same law enforcement officers whom he had 
     accused of stealing Hermitage Fund companies and illegally 
     obtaining a fraudulent $230,000,000 tax refund; he was denied 
     necessary medical care in custody; he was beaten by 8 guards 
     with rubber batons on the

[[Page H6403]]

     last day of his life; and the ambulance crew that was called 
     to treat him as he was dying was deliberately kept outside of 
     his cell for one hour and 18 minutes until he was dead. The 
     report of the Human Rights Council also states the officials 
     falsified their accounts of what happened to Sergei Magnitsky 
     and, 18 months after his death, no officials had been brought 
     to trial for his false arrest or the crime he uncovered. The 
     impunity continued in April 2012, when Russian authorities 
     dropped criminal charges against Larisa Litvinova, the head 
     doctor at the prison where Magnitsky died.
       (9) The systematic abuse of Sergei Magnitsky, including his 
     repressive arrest and torture in custody by officers of the 
     Ministry of the Interior of the Russian Federation that Mr. 
     Magnitsky had implicated in the embezzlement of funds from 
     the Russian Treasury and the misappropriation of 3 companies 
     from his client, Hermitage Capital Management, reflects how 
     deeply the protection of human rights is affected by 
     corruption.
       (10) The politically motivated nature of the persecution of 
     Mr. Magnitsky is demonstrated by--
       (A) the denial by all state bodies of the Russian 
     Federation of any justice or legal remedies to Mr. Magnitsky 
     during the nearly 12 full months he was kept without trial in 
     detention; and
       (B) the impunity since his death of state officials he 
     testified against for their involvement in corruption and the 
     carrying out of his repressive persecution.
       (11) The Public Oversight Commission of the City of Moscow 
     for the Control of the Observance of Human Rights in Places 
     of Forced Detention, an organization empowered by Russian law 
     to independently monitor prison conditions, concluded on 
     December 29, 2009, ``A man who is kept in custody and is 
     being detained is not capable of using all the necessary 
     means to protect either his life or his health. This is a 
     responsibility of a state which holds him captive. Therefore, 
     the case of Sergei Magnitsky can be described as a breach of 
     the right to life. The members of the civic supervisory 
     commission have reached the conclusion that Magnitsky had 
     been experiencing both psychological and physical pressure in 
     custody, and the conditions in some of the wards of Butyrka 
     can be justifiably called torturous. The people responsible 
     for this must be punished.''.
       (12) Sergei Magnitsky's experience, while particularly 
     illustrative of the negative effects of official corruption 
     on the rights of an individual citizen, appears to be 
     emblematic of a broader pattern of disregard for the numerous 
     domestic and international human rights commitments of the 
     Russian Federation and impunity for those who violate basic 
     human rights and freedoms.
       (13) The second trial, verdict, and sentence against former 
     Yukos executives Mikhail Khodorkovsky and Platon Lebedev 
     evoke serious concerns about the right to a fair trial and 
     the independence of the judiciary in the Russian Federation. 
     The lack of credible charges, intimidation of witnesses, 
     violations of due process and procedural norms, falsification 
     or withholding of documents, denial of attorney-client 
     privilege, and illegal detention in the Yukos case are highly 
     troubling. The Council of Europe, Freedom House, and Amnesty 
     International, among others, have concluded that they were 
     charged and imprisoned in a process that did not follow the 
     rule of law and was politically influenced. Furthermore, 
     senior officials of the Government of the Russian Federation, 
     including First Deputy Prime Minister Igor Shuvalov, have 
     acknowledged that the arrest and imprisonment of Khodorkovsky 
     were politically motivated.
       (14) According to Freedom House's 2011 report entitled 
     ``The Perpetual Battle: Corruption in the Former Soviet Union 
     and the New EU Members'', ``[t]he highly publicized cases of 
     Sergei Magnitsky, a 37-year-old lawyer who died in pretrial 
     detention in November 2009 after exposing a multimillion-
     dollar fraud against the Russian taxpayer, and Mikhail 
     Khodorkovsky, the jailed business magnate and regime critic 
     who was sentenced at the end of 2010 to remain in prison 
     through 2017, put an international spotlight on the Russian 
     state's contempt for the rule of law. . . . By silencing 
     influential and accomplished figures such as Khodorkovsky and 
     Magnitsky, the Russian authorities have made it abundantly 
     clear that anyone in Russia can be silenced.''.
       (15) The tragic and unresolved murders of Nustap 
     Abdurakhmanov, Maksharip Aushev, Natalya Estemirova, Akhmed 
     Hadjimagomedov, Umar Israilov, Paul Klebnikov, Anna 
     Politkovskaya, Saihadji Saihadjiev, and Magomed Y. Yevloyev, 
     the death in custody of Vera Trifonova, the disappearances of 
     Mokhmadsalakh Masaev and Said-Saleh Ibragimov, the torture of 
     Ali Israilov and Islam Umarpashaev, the near-fatal beatings 
     of Mikhail Beketov, Oleg Kashin, Arkadiy Lander, and Mikhail 
     Vinyukov, and the harsh and ongoing imprisonment of Mikhail 
     Khodorkovsky, Alexei Kozlov, Platon Lebedev, and Fyodor 
     Mikheev further illustrate the grave danger of exposing the 
     wrongdoing of officials of the Government of the Russian 
     Federation, including Chechen leader Ramzan Kadyrov, or of 
     seeking to obtain, exercise, defend, or promote 
     internationally recognized human rights and freedoms.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States should continue to strongly support, and 
     provide assistance to, the efforts of the Russian people to 
     establish a vibrant democratic political system that respects 
     individual liberties and human rights, including by enhancing 
     the provision of objective information through all relevant 
     media, such as Radio Liberty and the internet. The Russian 
     Government's suppression of dissent and political opposition, 
     the limitations it has imposed on civil society and 
     independent media, and the deterioration of economic and 
     political freedom inside Russia are of profound concern to 
     the United States Government and to the American people.

     SEC. 403. DEFINITIONS.

       In this title:
       (1) Admitted; alien.--The terms ``admitted'' and ``alien'' 
     have the meanings given those terms in section 101 of the 
     Immigration and Nationality Act (8 U.S.C. 1101).
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Armed Services, the Committee on 
     Financial Services, the Committee on Foreign Affairs, the 
     Committee on Homeland Security, and the Committee on the 
     Judiciary of the House of Representatives; and
       (B) the Committee on Armed Services, the Committee on 
     Banking, Housing, and Urban Affairs, the Committee on Foreign 
     Relations, the Committee on Homeland Security and 
     Governmental Affairs, and the Committee on the Judiciary of 
     the Senate.
       (3) Financial institution.--The term ``financial 
     institution'' has the meaning given that term in section 5312 
     of title 31, United States Code.
       (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.

     SEC. 404. IDENTIFICATION OF PERSONS RESPONSIBLE FOR THE 
                   DETENTION, ABUSE, AND DEATH OF SERGEI MAGNITSKY 
                   AND OTHER GROSS VIOLATIONS OF HUMAN RIGHTS.

       (a) In General.--Not later than 120 days after the date of 
     the enactment of this Act, the President shall submit to the 
     appropriate congressional committees a list of each person 
     who the President determines, based on credible information--
       (1) is responsible for the detention, abuse, or death of 
     Sergei Magnitsky, participated in efforts to conceal the 
     legal liability for the detention, abuse, or death of Sergei 
     Magnitsky, financially benefitted from the detention, abuse, 
     or death of Sergei Magnitsky, or was involved in the criminal 
     conspiracy uncovered by Sergei Magnitsky;
       (2) is responsible for extrajudicial killings, torture, or 
     other gross violations of internationally recognized human 
     rights committed against individuals seeking--
       (A) to expose illegal activity carried out by officials of 
     the Government of the Russian Federation; or
       (B) to obtain, exercise, defend, or promote internationally 
     recognized human rights and freedoms, such as the freedoms of 
     religion, expression, association, and assembly, and the 
     rights to a fair trial and democratic elections, in Russia; 
     or
       (3) acted as an agent of or on behalf of a person in a 
     matter relating to an activity described in paragraph (1) or 
     (2).
       (b) Updates.--The President shall submit to the appropriate 
     congressional committees an update of the list required by 
     subsection (a) as new information becomes available.
       (c) Form.--
       (1) In general.--The list required by subsection (a) shall 
     be submitted in unclassified form.
       (2) Exception.--The name of a person to be included in the 
     list required by subsection (a) may be submitted in a 
     classified annex only if the President--
       (A) determines that it is vital for the national security 
     interests of the United States to do so;
       (B) uses the annex in such a manner consistent with 
     congressional intent and the purposes of this Act; and
       (C) 15 days prior to submitting the name in a classified 
     annex, provides to the appropriate congressional committees 
     notice of, and a justification for, including or continuing 
     to include each person in the classified annex despite any 
     publicly available credible information indicating that the 
     person engaged in an activity described in paragraph (1), 
     (2), or (3) of subsection (a).
       (3) Consideration of data from other countries and 
     nongovernmental organizations.--In preparing the list 
     required by subsection (a), the President shall consider 
     information provided by the chairperson and ranking member of 
     each of the appropriate congressional committees and credible 
     data obtained by other countries and nongovernmental 
     organizations, including organizations inside Russia, that 
     monitor the human rights abuses of the Government of the 
     Russian Federation.
       (4) Public availability.--The unclassified portion of the 
     list required by subsection (a) shall be made available to 
     the public and published in the Federal Register.
       (d) Removal From List.--A person may be removed from the 
     list required by subsection (a) if the President determines 
     and reports to the appropriate congressional committees not 
     less than 15 days prior to the removal of the person from the 
     list that--
       (1) credible information exists that the person did not 
     engage in the activity for which the person was added to the 
     list;
       (2) the person has been prosecuted appropriately for the 
     activity in which the person engaged; or
       (3) the person has credibly demonstrated a significant 
     change in behavior, has paid an appropriate consequence for 
     the activities in which the person engaged, and has credibly 
     committed to not engage in the types of activities specified 
     in paragraphs (1) through (3) of subsection (a).
       (e) Requests by Chairperson and Ranking Member of 
     Appropriate Congressional Committees.--

[[Page H6404]]

       (1) In general.--Not later than 120 days after receiving a 
     written request from the chairperson and ranking member of 
     one of the appropriate congressional committees with respect 
     to whether a person meets the criteria for being added to the 
     list required by subsection (a), the President shall submit a 
     response to the chairperson and ranking member of the 
     committee which made the request with respect to the status 
     of the person.
       (2) Form.--The President may submit a response required by 
     paragraph (1) in classified form if the President determines 
     that it is necessary for the national security interests of 
     the United States to do so.
       (3) Removal.--If the President removes from the list 
     required by subsection (a) a person who has been placed on 
     the list at the request of the chairperson and ranking member 
     of one of the appropriate congressional committees, the 
     President shall provide the chairperson and ranking member 
     with any information that contributed to the removal 
     decision. The President may submit such information in 
     classified form if the President determines that such is 
     necessary for the national security interests of the United 
     States.
       (f) Nonapplicability of Confidentiality Requirement With 
     Respect to Visa Records.--The President shall publish the 
     list required by subsection (a) without regard to the 
     requirements of section 222(f) of the Immigration and 
     Nationality Act (8 U.S.C. 1202(f)) with respect to 
     confidentiality of records pertaining to the issuance or 
     refusal of visas or permits to enter the United States.

     SEC. 405. INADMISSIBILITY OF CERTAIN ALIENS.

       (a) Ineligibility for Visas.--An alien is ineligible to 
     receive a visa to enter the United States and ineligible to 
     be admitted to the United States if the alien is on the list 
     required by section 404(a).
       (b) Current Visas Revoked.--The Secretary of State shall 
     revoke, in accordance with section 221(i) of the Immigration 
     and Nationality Act (8 U.S.C. 1201(i)), the visa or other 
     documentation of any alien who would be ineligible to receive 
     such a visa or documentation under subsection (a) of this 
     section.
       (c) Waiver for National Security Interests.--
       (1) In general.--The Secretary of State may waive the 
     application of subsection (a) or (b) in the case of an alien 
     if--
       (A) the Secretary determines that such a waiver--
       (i) is necessary to permit the United States to comply with 
     the Agreement between the United Nations and the United 
     States of America regarding the Headquarters of the United 
     Nations, signed June 26, 1947, and entered into force 
     November 21, 1947, or other applicable international 
     obligations of the United States; or
       (ii) is in the national security interests of the United 
     States; and
       (B) prior to granting such a waiver, the Secretary provides 
     to the appropriate congressional committees notice of, and a 
     justification for, the waiver.
       (2) Timing for certain waivers.--Notification under 
     subparagraph (B) of paragraph (1) shall be made not later 
     than 15 days prior to granting a waiver under such paragraph 
     if the Secretary grants such waiver in the national security 
     interests of the United States in accordance with 
     subparagraph (A)(ii) of such paragraph.
       (d) Regulatory Authority.--The Secretary of State shall 
     prescribe such regulations as are necessary to carry out this 
     section.

     SEC. 406. FINANCIAL MEASURES.

       (a) Freezing of Assets.--
       (1) In general.--The President shall exercise all powers 
     granted by the International Emergency Economic Powers Act 
     (50 U.S.C. 1701 et seq.) (except that the requirements of 
     section 202 of such Act (50 U.S.C. 1701) shall not apply) to 
     the extent necessary to freeze and prohibit all transactions 
     in all property and interests in property of a person who is 
     on the list required by section 404(a) of this Act 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.--Paragraph (1) shall not apply to persons 
     included on the classified annex under section 404(c)(2) if 
     the President determines that such an exception is vital for 
     the national security interests of the United States.
       (b) Waiver for National Security Interests.--The Secretary 
     of the Treasury may waive the application of subsection (a) 
     if the Secretary determines that such a waiver is in the 
     national security interests of the United States. Not less 
     than 15 days prior to granting such a waiver, the Secretary 
     shall provide to the appropriate congressional committees 
     notice of, and a justification for, the waiver.
       (c) Enforcement.--
       (1) Penalties.--A person that violates, attempts to 
     violate, conspires to violate, or causes a violation of this 
     section or any regulation, license, or order issued to carry 
     out this section 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 such section.
       (2) Requirements for financial institutions.--Not later 
     than 120 days after the date of the enactment of this Act, 
     the Secretary of the Treasury shall prescribe or amend 
     regulations as needed to require each financial institution 
     that is a United States person and has within its possession 
     or control assets that are property or interests in property 
     of a person who is on the list required by section 404(a) if 
     such property and interests in property are in the United 
     States to certify to the Secretary that, to the best of the 
     knowledge of the financial institution, the financial 
     institution has frozen all assets within the possession or 
     control of the financial institution that are required to be 
     frozen pursuant to subsection (a).
       (d) Regulatory Authority.--The Secretary of the Treasury 
     shall issue such regulations, licenses, and orders as are 
     necessary to carry out this section.

     SEC. 407. REPORT TO CONGRESS.

       Not later than one year after the date of the enactment of 
     this Act and annually thereafter, the Secretary of State and 
     the Secretary of the Treasury shall submit to the appropriate 
     congressional committees a report on--
       (1) the actions taken to carry out this title, including--
       (A) the number of persons added to or removed from the list 
     required by section 404(a) during the year preceding the 
     report, the dates on which such persons have been added or 
     removed, and the reasons for adding or removing them; and
       (B) if few or no such persons have been added to that list 
     during that year, the reasons for not adding more such 
     persons to the list; and
       (2) efforts by the executive branch to encourage the 
     governments of other countries to impose sanctions that are 
     similar to the sanctions imposed under this title.

  The SPEAKER pro tempore. The bill shall be debatable for 90 minutes, 
with 60 minutes equally divided and controlled by the chair and ranking 
minority member of the Committee on Ways and Means and 30 minutes 
equally divided and controlled by the chair and ranking minority member 
of the Committee on Foreign Affairs.
  The gentleman from Michigan (Mr. Camp) and the gentleman from 
Michigan (Mr. Levin) each will control 30 minutes. The gentleman from 
Indiana (Mr. Burton) and the gentleman from California (Mr. Berman) 
each will control 15 minutes.
  The Chair recognizes the gentleman from Indiana (Mr. Burton).
  Mr. BURTON of Indiana. Madam Speaker, I'm very happy to yield to the 
very competent leader of the Foreign Affairs Committee, Ms. Ros-
Lehtinen, for such time as she may consume.
  Ms. ROS-LEHTINEN. I thank the gentleman from Indiana for the time.
  I plan to vote for this bill, H.R. 6156, even though I remain 
strongly opposed to granting Russia permanent normal trade relations, 
or PNTR, at this time, and I would like to explain the reasons why.
  Those who argue for granting Russia PNTR, which has, until now, been 
prevented by what is known as the Jackson-Vanik amendment, focus on the 
supposed bilateral trade benefits; but the issue that concerns me and 
many Members is not trade, but human rights.
  Advocates of repeal say that the Jackson-Vanik amendment is outdated 
and purely symbolic and, therefore, should be disregarded. But in the 
area of human rights, Madam Speaker, symbols can have a very great 
importance.
  Over the years, Jackson-Vanik has become a sign of the continuing 
U.S. commitment to human rights in Russia and elsewhere. Repealing the 
amendment could very well be interpreted as an indication that our 
commitment is now weakening. This would be a terrible signal to send at 
a time when Vladimir Putin is in the process of imposing ever-tighter 
restrictions on all opposition to his regime, especially democratic 
activists and any others who dare to defy the authorities.
  I also oppose granting Russia PNTR at this time because it is but one 
more concession by the United States in pursuit of the President's 
failed reset of relations with Moscow, which among other measures 
includes the one-sided New START Treaty, the retrenching of NATO's 
planned missile defense system against Iranian missiles, and Russia's 
entry into the World Trade Organization. And now Moscow is being given 
PNTR even as it pursues policies in Iran and elsewhere that undermine 
U.S. interests.
  Nevertheless, despite my objections, I will vote for the bill because 
it is the only way of securing passage for H.R. 4405, the Magnitsky 
Act, which has been incorporated into this bill as title IV.
  By requiring the President to publicly identify and impose sanctions 
on human rights violators in Russia, especially those involved in the 
death of Sergei Magnitsky and the subsequent coverup, this legislation 
will make clear that the U.S. remains fully committed to advancing 
democracy and human rights in that country. These are more than just 
symbolic steps. The proof comes from the threats by the

[[Page H6405]]

Kremlin of retaliation if Congress dares to act because the regime 
fears that senior officials will be publicly implicated.
  The administration tried very hard to prevent the Magnitsky Act from 
moving forward and gave way only when faced with overwhelming 
bipartisan support for it in both the House and the Senate, making it a 
precondition for passage of PNTR.
  In particular, the administration has tried to remove a requirement 
that the list of officials and others be made public and has pushed 
hard to be allowed to keep some of those names classified. But keeping 
the names secret is exactly what the Kremlin hopes to do. Therefore, 
although the legislation does allow the President to put the names of 
some violators on a classified list, this exception can only be used 
when the President determines that it is vital to U.S. national 
security interests, and he must justify such action to us in the 
Congress.
  So, to erase any doubt, let me state for the record that the clear 
intent of Congress is that this exception will be used only in rare 
cases, and that misuse by the administration will quickly prompt a 
strong response.

                              {time}  0920

  Let me close by saying, Madam Speaker, that on this third anniversary 
of the death of Sergei Magnitsky, while in police custody, we in 
Congress are united in our support for those fighting for democracy and 
human rights in Russia, and will stand with them in this time of 
repression until they have triumphed and their country has taken its 
rightful place among the democracies of the world.
  Mr. BERMAN. Madam Speaker, I yield myself 4 minutes.
  Madam Speaker, I rise in support of H.R. 6156, the Russia and Moldova 
Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability 
Act of 2012.
  The Jackson-Vanik amendment is a good example of the power of 
legislation to promote positive change. In 1974, when it was adopted, 
the right to emigrate was being denied to many people in many non-
market countries, most notably the Soviet Union.
  By limiting normal trade relations, Jackson-Vanik helped pressure 
countries to change their restrictive immigration policies, and in the 
case of the Soviet Union, to allow the immigration of Soviet Jews and 
many other groups previously precluded from leaving to go to the United 
States to Israel and to other countries.
  We continue to have very serious concerns about the human rights 
situation in Russia, but as the specific root causes of Jackson-Vanik 
no longer exist, it has been waived for Russia every year since 1989.
  The important piece of legislation we are considering today repeals 
the Jackson-Vanik amendment with respect to Russia and Moldova, grants 
Russia permanent normal trade relations, and includes an important new 
provision to address human rights violations in Russia. Adherence to 
accepted standards of both trade and human rights are important to 
America and to a fruitful U.S.-Russia relationship.
  Russia joined the WTO in August of this year, and is now subject to 
WTO fair-trade disciplines and dispute resolution procedures. Enactment 
of this bill is necessary for U.S. exporters to benefit from the WTO 
rules and the enhanced market access in pursuing trade with Russia. It 
will also afford us an additional mechanism to protect intellectual 
property rights, including over the Internet.
  Although Russia once was a small player in world trade, its imports 
have shot up by 80 percent since 2005, 20 percent just last year. If we 
don't pass this bill, American companies will be operating at a 
disadvantage and have a harder time tapping into this growing market.
  This is also an important step for strengthening democratic norms in 
Russia. Over the past several years, the Russian people have 
demonstrated a new-found confidence in questioning their government. We 
hope that increased trade with Western nations, including the U.S., 
will bring greater transparency to the Russian economic system, and it 
will help grow the middle class, which is at the forefront of demanding 
improved democratic governance and the rule of law.
  Regrettably, Russia remains one of the least free countries in 
Europe, and it is important that we continue to raise serious concerns 
about its dismal record on democracy, human rights, and the rule of 
law.
  In addition to Sergei Magnitsky's tragic death, we are deeply 
concerned about a range of human rights violations including 
extrajudicial killings, detention, torture of those expressing opposing 
views, the serious irregularities in elections, and legislation enacted 
by several city councils, including Saint Petersburg, to restrict the 
rights of Russia's LGBT community.
  The Magnitsky provisions would place restrictions on the financial 
activities and travel of Russians connected to various human rights 
violations. The names of these human rights violators would be publicly 
available, unless the administration determines that the individual 
must be placed on a classified list.

  The intent of these provisions is for the administration to use the 
classified list only under the prescribed set of circumstances outlined 
in the bill, and our expectation is that the use of the classified list 
will be the exception, not the rule.
  Madam Speaker, I support this legislation and encourage my colleagues 
to support it as well.
  I reserve the balance of my time.


                             General Leave

  Mr. BURTON of Indiana. Madam Speaker, I ask unanimous consent that 
all Members may have 5 legislative days to revise and extend their 
remarks and to insert extraneous material on the bill, H.R. 6156.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Indiana?
  There was no objection.
  Mr. BURTON of Indiana. Madam Speaker, I yield whatever time he may 
consume to the gentleman from California (Mr. Royce), a leader on the 
Foreign Affairs Committee.
  Mr. ROYCE. Madam Speaker, please excuse my voice today, but I did 
want to rise in support of this legislation, and also to associate 
myself with the observations made by my colleague, Congressman Berman, 
and certainly with Congressman Burton.
  The legislation here that was originally enacted in 1974, Congressman 
Howard Berman is quite correct, this, during the Cold War, did play a 
very key role with respect to immigration. But today, that is long 
over. And with Russia joining the WTO in August, we have a problem here 
in the United States, and that is, Russia, in doing so, made tariff 
cuts for every country in the world except the United States. This bill 
would correct that. And of course, without this legislation, exporters 
here in the United States would lose.
  I've never viewed Jackson-Vanik as an impediment to Russian relations 
today. But neither do I see it as very helpful in pressing Russia on 
issues like Iran or their conduct toward Syria. Russian opposition 
level leaders, however, and Russian civil society, and the Russian 
press, what free press remains in Russia today, really support this 
legislation.
  I think what this legislation intends is sort of a mutually 
beneficial relationship with Russia, based on the rule of law, based on 
human rights. That's the hope. It includes the Sergei Magnitsky 
legislation that came out of the Foreign Affairs Committee, of which 
I'm an original cosponsor, and I do think we owe a debt of gratitude to 
Chairman Ros-Lehtinen for her determination to have that provision in 
the legislation.
  I think if we reflect on the words of the Russian opposition in their 
Parliament, one said recently, this provision is very pro-Russian. It 
helps defend us in Russia from criminals. It helps defend us from 
criminals who kill our citizens, who steal our money and then hide it 
abroad. And that's the point. That's what we're trying to do in that 
provision.
  And this bill, liberalizing trade while at the same time staying true 
to human rights, should have passed months ago. Sometimes we have a 
debate with the administration, in this particular case it was over the 
question of sort of quiet diplomacy with Russia, or whether we were 
going to speak out forcefully on these human rights provisions. I do 
not prefer silence on issues such as this.

[[Page H6406]]

  I think that the systemic corruption we're seeing today in Moscow, 
and the abuse of power we're seeing from the regime, really demand 
inclusion of these provisions. And I think, thankfully, a bipartisan 
group in Congress, including Howard Berman, including Congresswoman 
Ros-Lehtinen and others, stuck it out, came together on this and 
insured the inclusion in this bill of these provisions in memory of 
Sergei Magnitsky, in order to take a stand. And I think that is the 
right course. I encourage all my colleagues to pass this legislation.

                              {time}  0930

  Mr. BERMAN. Madam Speaker, I yield myself 15 seconds.
  The gentleman from Massachusetts is the cochair of the Tom Lantos 
Commission on Human Rights; but I think particularly I want to 
recognize him because, in addition to everyone named so far, a very key 
player in all of this has been this gentleman from Massachusetts, and 
he has made tremendous efforts on these Magnitsky provisions.
  So as we now move this bill to passage, I recognize chairman of the 
Tom Lantos Commission on Human Rights, a gentleman who has worked on 
this bill for 3 years and who has been a leader on human rights issues 
all over the world. With thanks for his efforts and passion over this 
part of the legislation, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. McGovern).
  Mr. McGOVERN. Madam Speaker, I want to thank the distinguished 
ranking member of the Foreign Affairs Committee for all of his efforts 
and support on this and on so many other issues. It is a privilege to 
serve with him. I also want to thank the chairwoman of the Foreign 
Affairs Committee, Ileana Ros-Lehtinen. Both of these individuals are 
responsible for making sure the final version of the Magnitsky Act 
included in this bill is strong, workable, and precedent-setting. It is 
a major piece of human rights legislation, and I am very, very grateful 
for their leadership.
  Madam Speaker, today is the third anniversary of the death of Sergei 
Magnitsky, in whose honor title IV of this bill is named. He died on 
November 16, 2009, after enduring torture and beatings while being 
imprisoned for blowing the whistle on the largest tax fraud in Russian 
history. He did the right thing, and he paid for it with his life at 
the hands of brutal and corrupt Russian officials. His case remains in 
impunity.
  Yet, under title IV of this bill, the United States will not stand by 
silently and let his killers and abusers and those who covered up these 
crimes get away with it. Those identified as responsible for these 
crimes will be named, their assets frozen, and a visa ban imposed.
  We won't be acting alone. On September 26, the European Parliament 
unanimously adopted a resolution recommending that the European Union 
establish a common list of officials responsible for the death and 
cover-up of Sergei Magnitsky and to impose an EU-wide visa ban on these 
officials and freeze any financial assets they may hold inside the 
European Union.
  Let me be perfectly clear. This bill is not simply about the case of 
Sergei Magnitsky. It applies to all of those who engage in gross human 
rights violations or corruption. It is precedent-setting human rights 
legislation. The House should be proud of what it is accomplishing 
today for human rights and the rule of law for the Magnitsky family, 
for the Russian people, for honorable Russian officials, and for human 
rights defenders inside and outside Russia.
  Because this bill includes the Magnitsky Act, I urge my colleagues to 
vote for H.R. 6156 and would like to insert the European Parliament's 
report and an article from the American Enterprise Institute in the 
Record at this point.

Report With a Proposal for a European Parliament Recommendation to the 
Council on Establishing Common Visa Restrictions for Russian Officials 
                 Involved in the Sergei Magnitsky Case


  proposal for a european parliament recommendation to the council on 
establishing common visa restrictions for russian officials involved in 
               the sergei magnitsky case (2012/2142(INI))

       The European Parliament, having regard to Article 215 of 
     the TFEU, having regard to the proposal for a recommendation 
     to the Council by Guy Verhoefstadt and Kristiina Ojuland, on 
     behalf of the Aide Group (B7-0196/2012), having regard to its 
     resolution of 17 February 2011 on the rule of law in Russia, 
     having regard to its resolution of 16 December 2010 on the 
     Annual Report on Human Rights in the World 2009 and the 
     European Union's policy on the matter, having regard to its 
     resolution of 14 December 2011 on the upcoming EU-Russia 
     Summit on 15 December 2011 and the outcome of the Duma 
     elections on 4 December 2011, having regard to its 
     recommendation of 2 February 2012 to the Council on a 
     consistent policy towards regimes against which the EU 
     applies restrictive measures, having regard to the adoption 
     of the Sergei Magnitsky Rule of Law Accountability Act by the 
     US Senate's Foreign Relations Committee on 26 June 2012, 
     seeking to impose visa bans and asset freezes on Russian 
     officials allegedly involved in the detention, abuse and 
     death of Sergei Magnitsky, having regard to the draft 
     resolution entitled `Rule of law in Russia: case of Sergei 
     Magnitsky', which was presented to the 2012 annual session of 
     the OSCE Parliamentary Assembly, calling on national 
     parliaments to take action to impose visa sanctions and asset 
     freezes, having regard to Rule 121(3) of its Rules of 
     Procedure, having regard to the report of the Committee on 
     Foreign Affairs (A7-0285/2012),
       A. whereas the arrest, conditions of detention and 
     subsequent death in custody of Sergei Magnitsky represent a 
     well documented and substantial case of disrespect for 
     fundamental human rights;
       B. whereas the posthumous prosecution of Sergei Magnitsky 
     is a violation of international and national laws and clearly 
     shows the malfunctioning of the Russian criminal justice 
     system;
       C. whereas the Russian Federation, as a member of the 
     Council of Europe and of the Organisation for Security and 
     Cooperation in Europe, has committed itself to fully 
     respecting fundamental rights and the rule of law, and 
     whereas the European Union has repeatedly offered additional 
     assistance and expertise to help the Russian Federation 
     modernise, and abide by, its constitutional and legal order;
       D. whereas, despite the 2011 conclusions of the inquiry 
     conducted by the Russian President's Human Rights Council on 
     the illegality of Sergei Magnitsky's arrest, detention and 
     being denied access to justice, the investigations are 
     stalled and the officials involved have been exonerated and 
     even assigned to the posthumous case; whereas such actions on 
     the part of the authorities demonstrate the politically 
     motivated nature of Magnitsky's prosecution;
       E. whereas the European Union has urged the Russian 
     authorities on many occasions and formats, from regular human 
     rights consultations to summit-level meetings, to conduct 
     thorough independent investigations in this special, well 
     documented case, and to put an end to the current climate of 
     impunity;
       F. whereas the case of Sergei Magnitsky is only one but the 
     most prominent and well documented case of abuse of powers by 
     the Russian law enforcement authorities, heavily violating 
     the rule of law; whereas a multitude of other juridical cases 
     exist using systematically the pretext of economic crimes and 
     alleged corruption for eliminating business competitors or 
     political rivals;
       G. whereas visa restrictions and other restrictive measures 
     are not traditional judicial sanctions per se, but constitute 
     a political signal of the EU's concern to a larger target 
     audience and thus remain a necessary and legitimate foreign 
     policy tool;
       H. whereas EU sanctions on the Magnitsky case could prompt 
     the Russian authorities to make genuine and fresh efforts to 
     address, in a more concrete and convincing manner, the 
     question of the rule of law in Russia and the current climate 
     of impunity;
       I. whereas several national parliaments of EU Member 
     States--among them Italy, the Netherlands, the United 
     Kingdom, Sweden and Poland--have already passed resolutions 
     urging their governments to introduce sanctions on the 
     Magnitsky case, while several other national parliaments, 
     such as those in Portugal, France, Spain and Latvia, are at 
     the initial drafting stage for such resolutions;
       1. Addresses the following recommendations to the Council:
       (a) to establish a common EU list of officials responsible 
     for the death of Sergei Magnitsky, for the subsequent 
     judicial cover-up and for the ongoing and sustained 
     harassment of his mother and widow;
       (b) to impose and implement an EU-wide visa ban on these 
     officials and to freeze any financial assets they or their 
     immediate family may hold inside the European Union;
       (c) to call on Russia to conduct a credible and independent 
     investigation encompassing all aspects of this tragic case, 
     and to bring all those responsible to justice;
       (d) to urge the Russian authorities to put an end to the 
     widespread corruption and to reform the judicial system, and 
     bring it into line with international standards, by creating 
     an independent, just and transparent system that cannot, 
     under any circumstances, be misused for political reasons;
       (e) to raise, in the course of bilateral meetings with 
     Russian authorities, this issue as well as the issue of 
     intimidation and impunity in cases involving human rights 
     defenders, journalists and lawyers, in a more determined, 
     resolute and result-oriented manner;
       2. Encourages the Council to take a coherent and proactive 
     stance on other serious

[[Page H6407]]

     human rights violations in Russia, on the basis of well 
     documented, converging and independent sources and convincing 
     evidence, and to introduce similar restrictive measures 
     against offenders as a last resort measure;
       3. Underlines that the commitment of the Russian 
     authorities to basic values such as the rule of law, and 
     respect for human rights and basic freedoms, remains the main 
     prerequisite for EU-Russia relations and for the development 
     of a stable and reliable partnership between the two parties;
       4. Instructs its President to forward this recommendation 
     to the Council and, for information, to the Commission, the 
     Member States, the Russian State Duma and the Government of 
     the Russian Federation.


               proposal for a recommendation B7-0196/2012

       The European Parliament, having regard to Article 215 of 
     the TFEU, having regard to the European Parliament 
     recommendation to the Council on a consistent policy on 
     restrictive measures, adopted on 2 February 2012, having 
     regard to the decision by the United States to impose travel 
     restrictions on 60 officials involved in the Sergei Magnitsky 
     case and to similar considerations in a number of other 
     countries, having regard to Rule 121(1) of its Rules of 
     Procedure,
       A. whereas the arrest and subsequent death in custody of 
     Sergei Magnitsky represents a well documented and substantial 
     case of disrespect for fundamental human rights in Russia, 
     and serves as a chilling reminder of the many documented 
     shortcomings in the respect shown for human rights and 
     fundamental freedoms in Russia;
       B. whereas Russia, as a member of the Council of Europe, 
     has committed itself to fully respecting fundamental rights 
     and the rule of law, and whereas the European Union has 
     repeatedly offered additional assistance and expertise to 
     help Russia modernise, and abide by, its constitutional and 
     legal order, in line with Council of Europe standards;
       C. whereas there is an increasing need for a firm, robust 
     and comprehensive EU policy towards Russia, offering support 
     and assistance backed up by firm and fair criticism, 
     including sanctions and restrictive measures when needed;
       D. whereas visa restrictions and other restrictive measures 
     are not traditional judicial sanctions per se, but constitute 
     a political signal of the EU's concern to a larger target 
     audience and thus remain a necessary and legitimate foreign 
     policy tool;
       1. Addresses the following recommendations to the Council:
       (a) to establish a common EU list of officials responsible 
     for the death of Sergei Magnitsky, for the subsequent 
     judicial cover-up and for the ongoing and sustained 
     harassment of his mother and widow;
       (b) to impose and implement an EU-wide visa ban on these 
     officials and to freeze any financial assets they or their 
     immediate family may hold inside the European Union;
       (c) to call on Russia to conduct a credible and independent 
     investigation encompassing all aspects of this tragic case;
       2. Instructs its President to forward this recommendation 
     to the Council and, for information, to the Commission, the 
     Member States, and the State Duma and Government of Russia.

                    RESULT OF FINAL VOTE IN COMMITTEE
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Date adopted.................  20.9.2012
Result of final vote.........  +: 62
                               -: 2
                               0: 1
Members present for the final  Franziska Katharina Brantner, Elmar Brok,
 vote.                          Jerzy Buzek, Tarja Cronberg, Arnaud
                                Danjean, Mario David, Michael Gahler,
                                Marietta Giannakou, Ana Gomes, Andrzej
                                Grzyb, Liisa Jaakonsaari, Jelko Kacin,
                                loannis Kasoulides, Nicole Kiil-Nielsen,
                                Evgeni Kirilov, Maria Eleni Koppa, Pawel
                                Robert Kowal, Eduard Kukan, Vytautas
                                Landsbergis, Krzysztof Lisek, Sabine
                                Losing, Ulrike Lunacek, Francisco Jose
                                Milan Mon, Maria Muniz De Urquiza,
                                Annemie Neyts-Uyttebroeck, Norica
                                Nicolai, Pier Antonio Panzeri, loan
                                Mircea Pascu, Alojz Peterle, Bernd
                                Posselt, Hans-Gert Pottering, Cristian
                                Dan Preda, Libor Roucek, Tokia Saifi,
                                Jose Ignacio Salafranca Sanchez-Neyra,
                                Nikolaos Salavrakos, Jacek Saryusz-
                                Wolski, Gyorgy Schopflin, Werner Schulz,
                                Marek Siwiec, Sophocles Sophocleous,
                                Laurence J.A.J. Stassen, Charles
                                Tannock, Inese Vaidere, Johannes
                                Cornelis van Baalen, Geoffrey Van Orden,
                                Sir Graham Watson, Boris Zala
Substitute(s) present for the  Laima Liucija Andrikiene, Elena Basescu,
 final vote.                    Marije Cornelissen, Jacek Protasiewicz,
                                Teresa Riera Madurell, Carmen Romero
                                Lopez, Marietje Schaake, Helmut Scholz,
                                Alf Svensson, Indrek Tarand, Traian
                                Ungureanu, Ivo Vajgl, Luis Yanez-
                                Barnuevo Garcia, Joachim Zeller, Janusz
                                Wladyslaw Zemke
Substitute(s) under Rule       Maria Badia i Cutchet, Ivari Padar
 187(2) present for the final
 vote.
------------------------------------------------------------------------

        [From the American Enterprise Institute, Nov. 15, 2012]

         Three Cheers for the Magnitsky Act and American Values

                             (By Leon Aron)

       In the next few days, the House and the Senate will almost 
     certainly vote on and pass the Sergei Magnitsky Rule of Law 
     Accountability Act. The bill is named after a 37-year-old 
     lawyer who was tortured to death in a Moscow prison after he 
     uncovered an elaborate scheme that had defrauded the Russian 
     treasury of $230 million. November 16th will be the third 
     anniversary of his death.
       The Magnitsky Act would deny entry to the United States and 
     freeze the assets and property of those individuals 
     responsible for this embezzlement, the death of Sergei 
     Magnitsky, and its cover up, as well as any current or future 
     abuse of human and political rights.
       The anti-Putin opposition in Russia has overwhelmingly 
     supported the Magnitsky Act. Even leftists and nationalists 
     have been ardently in favor. Just as vehemently, the Kremlin 
     has denounced the legislation, crying ``interference in its 
     internal affairs'' and threatening an ``appropriate 
     response.''
       The ``interference'' objection has not a leg to stand on. 
     The legislation is directed not against Russia but against 
     those who torment and defraud it. Moreover, Russia and the 
     Soviet Union--to which Russia is the legal successor--are 
     party to multiple agreements, most notably the Helsinki Act 
     of 1976 and its subsequent iterations that explicitly make 
     human and political rights subject to international scrutiny.
       As for the Kremlin's response, Russians on the internet 
     have had tons of fun with it: ``No more shopping trips to 
     Moscow by the wives of US officials!'' ``No more Black Sea 
     vacations for them!'' ``US officials will be prohibited from 
     keeping their money in Russian banks and their children 
     denied admissions to Russian colleges!''
       Although it might precipitate a petty tit-for-tat, the 
     Magnitsky Act is part of something far larger than mere ups 
     and downs in US-Russian relations. It is a long overdue step 
     reaffirming the core values that guide US foreign policy and 
     advancing what is--or ought to be--one of its key, 
     overarching geostrategic objectives: The emergence of a 
     stable, free, and democratic Russian state at peace, in the 
     long last, with its own people and the world.

  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. BERMAN. I yield the gentleman an additional 2 minutes.
  Mr. McGOVERN. Madam Speaker, I would like to enter into a colloquy 
with the majority and minority floor managers--the gentleman from 
Indiana (Mr. Burton) and the gentleman from California (Mr. Berman)--
just to clarify the congressional intent regarding the use of the 
classified annex mentioned in section 404(c)(2) of H.R. 6156.
  Section 404 of the bill would hold accountable Magnitsky's killers 
and other human rights violators by placing targeted sanctions on them. 
In particular, the bill imposes a visa ban and asset freeze on 
individuals responsible for participating in or for covering up Sergei 
Magnitsky's detention, abuse and death, and on individuals responsible 
for certain other gross violations of human rights. As part of that 
accountability, section 404 requires the President to publish a list of 
the people responsible for those particular abuses.
  It is my understanding that the congressional intent behind title IV 
is for people subject to sanctions to be placed on an unclassified list 
in a transparent manner and that any classified annex may be used only 
as an exception and not the rule. The administration may list a person 
in the classified annex only if the President determines that it is 
absolutely vital to the national security interests of the United 
States and provides Congress with prior notice and justification.
  I yield to the floor manager for the majority, Mr. Burton, such time 
as he requires to clarify his own understanding.
  Mr. BURTON of Indiana. Yes, Madam Speaker, I share in the gentleman's 
understanding of congressional intent as reflected in the text of 
section 404(c). The list of sanctionable individuals is meant to be 
unclassified, and any classified annex should be used only as an 
exception.
  Mr. McGOVERN. In reclaiming my time, I thank the gentleman.
  I yield to the floor manager for the minority, Mr. Berman, such time 
as he requires to clarify his understanding.
  Mr. BERMAN. I thank the gentleman for yielding.
  Madam Speaker, that is also my understanding. The intent of Congress 
is to place people in the classified annex only if the President 
determines and justifies to the relevant committees that it is vital 
for the national security interests of the United States.
  Mr. McGOVERN. In reclaiming my time, I thank the gentlemen for their 
assurances and clarifications.

[[Page H6408]]

  I want to thank this Congress for their bipartisan support of this 
Magnitsky Act, which, I think, makes it clear that, if the United 
States of America stands for anything, we stand out loud and foursquare 
for human rights.
  Mr. BURTON of Indiana. Madam Speaker, I am very happy to yield 2 
minutes to one of the real leaders on the Foreign Affairs Committee, 
the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Madam Speaker, almost 40 years ago, this 
body heard the cries of the Jewish refuseniks trapped behind the Iron 
Curtain, and it passed the Jackson-Vanik amendment, which brilliantly 
linked the free movement of goods with the free movement of people. It 
was a congressional initiative, opposed by the White House, which 
sought ``reset'' at all costs--at that time it was called ``detente''--
with Russia.
  It's a sad commentary on what the Russian people continue to suffer 
that now, more than 40 years after the collapse of the Soviet Union, we 
meet in the same House Chamber to struggle with similar issues.
  Russia is now a market economy and permits emigration, but human 
rights and the rule of law are trampled with impunity and often 
violence. Since Jackson-Vanik--a marvelous tool for promoting human 
rights in the seventies and eighties--doesn't address Russia's current 
problems, we need a new tool. The need for one should be evident to 
anyone who follows the news. Madam Speaker, the Magnitsky provisions of 
the trade bill we are considering provide such a tool.
  These tools couldn't be timelier as some lament a perceived decline 
in American influence abroad. The Magnitsky sanctions shouldn't cost us 
a dime--and the howls from the Kremlin suggest we are on to something. 
While threats like cutting off aid or military cooperation mean nothing 
to the Russians, its kleptocratic elite deeply value access to the 
West. The privilege of a U.S. visa affords a measure of respectability 
as well as a quick exit for those who worry daily that somebody may be 
held to account for the crimes against their countrymen. Further, 
corrupt Russian officials know better than to keep their fortunes 
inside Russia, risking confiscation by other corrupt officials.
  The penalties imposed by Jackson-Vanik applied to the entire Russian 
economy, but those envisioned by the Magnitsky legislation look to 
personal responsibility and target the individual bad actor. What this 
bill is saying is that murderers and torturers are not welcome in this 
country. I would certainly hope that we are not so compromised in our 
security and commercial relations that to publicly name and shame these 
individuals would be seen to hurt our interests. It is a great bill, 
and it will have, hopefully, good, strong bipartisan support.
  Mr. BERMAN. Madam Speaker, may I inquire as to how much time both 
sides have.
  The SPEAKER pro tempore. The gentleman from California has 6\3/4\ 
minutes remaining. The gentleman from Indiana has 4\1/2\ minutes 
remaining.
  Mr. BERMAN. Madam Speaker, I yield 3 minutes to the ranking member of 
the Europe and Eurasia Subcommittee, my friend from New York (Mr. 
Meeks).
  Mr. MEEKS. I want to first thank ranking member Howard Berman for his 
leadership on this, as well as to thank Chairwoman Ros-Lehtinen.
  I urge my colleagues to support H.R. 6156, the Russia and Moldova 
Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability 
Act of 2012. Granting permanent normal trade relations with Russia and 
Moldova is long overdue; and with this vote we look to the future and 
put aside some longstanding vestiges of the Cold War.
  I strongly endorse granting permanent normal trade relations to 
Moldova. Since 2001, when Moldova entered the World Trade Organization, 
the United States has been in noncompliance with WTO rules because 
Congress has failed to repeal the Jackson-Vanik amendment. Moldova is a 
Western-oriented, fully democratic country, and Moldova deserves to be 
treated as an economic partner so we can strengthen our ties to her 
further.
  We will hear lots today about the economic, human rights, and foreign 
policy implications of this bill; and Russia will be at the center of 
the debate.

                              {time}  0940

  But I hope that we do not lose sight of this most basic point. At its 
core, today's vote on Russian PNTR is about an evolving relationship. 
The U.S.-Russia relationship has been at the top of our foreign policy 
agenda for more than half a century. The fact that the House has 
deliberated for so long to bring H.R. 6156 to the floor is an 
indication that this is still an important relationship.
  In 1974, when the Jackson-Vanik amendment was enacted, there was a 
Soviet Union, and the purpose of the amendment was to end the Soviet 
Union's policy that prevented the immigration of Jews. The objective 
has long since been met, and since 1991, Russia terminated fees on 
Russian immigrants. This is why, since 1992, the United States has 
certified that Russia complies with Jackson-Vanik and we have normal 
trade relations with Russia.
  The bill before us today simply makes that policy permanent. It also 
replaces the human rights policy of a bygone era with a more 
appropriate one for the issues in Russia today. In so doing, we allow 
U.S. businesses to take advantage of the many rules-based market 
opening and tariff reducing commitments that were part of the Russians' 
WTO accession package, and we uphold our longstanding commitment to 
protecting human rights and human dignity.
  Madam Speaker, we are nearly 3 months behind our biggest global 
competitors. The U.S. is the only one of the over 150 WTO members that 
did not immediately benefit from Russia joining the WTO. We are the 
only one. Only until we repeal Jackson-Vanik, Russia has a right to 
suspend all agreed upon WTO trade concessions with regard to the U.S. 
We're talking about losing out on hundreds of millions of dollars in 
just tariff cuts alone. Passage of this bill will expand our engagement 
with Russia and better facilitate the exporting of our goods.
  But trade is never just about the movement of goods and services. It 
is also about the transformative flow of people, ideas, best practices, 
and values. Increased trade may be the most efficient way yet to 
promote rule of law, fight corruption, support human rights, and 
inspire a civil society in Russia.
  With passage of H.R. 6156, we get beyond the Jackson-Vanik amendment, 
a Cold War relic, and level the playing field for American businesses 
and provide encouragement for whistleblowers. Therefore, I ask my 
colleagues to support this bill.
  Mr. BURTON of Indiana. Madam Speaker, I'm very happy to now yield 2 
minutes to the gentleman from California, a member of the Foreign 
Affairs Committee, Mr. Rohrabacher.
  Mr. ROHRABACHER. The Soviet dictatorship collapsed over two decades 
ago. Being someone who spent a considerable time of my life opposing 
Soviet communism, I have been disappointed to see that many of my own 
colleagues, on both sides of the aisle, have never gotten the Cold War 
out of their mind. So many of us in this body have been treating 
democratic Russia as if it is still the Soviet Union.
  Over the years, we should have established this level of cooperation, 
especially the economic cooperation that we're codifying today. This 
should have been established long ago. Instead, what happened was the 
people stuck in the Cold War kept vilifying the Soviet Union and 
exaggerating every shortcoming while at the same time ignoring similar 
flaws, for example, in China. The human rights abuses in China are 
outrageous, but yet we have moved forward time and again to expand 
their ability to make money on us, even to steal our technologies with 
a one-way free trade policy with China.
  We need to make sure that the people of Russia know what we're saying 
today: that the Cold War is over, that we need to march forward 
together to meet the challenges of both of our countries, and that we 
will open up our economy in economic cooperation with you so that we 
can stand together and prosper and so that we can also deal with the 
challenges of an ever more powerful and aggressive China and radical 
Islam, which is as great a threat

[[Page H6409]]

and kills as many Russians as they do Americans. The Russian people 
have to know that after today we have left the Cold War behind; we will 
quit vilifying the Soviet Union and holding them to a different 
standard than we do other countries simply because in the past they 
were our enemies.

  Madam Speaker, I gladly step forward to endorse this expansion of 
freedom of trade between our peoples.
  Mr. BERMAN. Madam Speaker, I have no further requests for time and 
simply need time to close.
  Mr. BURTON of Indiana. I reserve the right to close, so I yield to my 
colleague.
  Mr. BERMAN. Madam Speaker, I yield myself such time as I may consume.
  I think this is a very historic piece of bipartisan legislation. Just 
as Jackson-Vanik became a tool to deal with one aspect of a horrible 
set of policies by the Soviet Union during the Cold War, we now, using 
the Magnitsky legislation, deal with some very serious human rights 
issues remaining in Russia, but not in the context of restricting trade 
but in the context of deepening our economic relationship with Russia. 
I think what this legislation does altogether, in combination, is 
promote both that economic relationship and shared adherence to common 
standards of human rights democracy and the rule of law.
  I urge its support, and I yield back the balance of my time.
  Mr. BURTON of Indiana. Madam Speaker, I yield myself the balance of 
my time.
  Russia joined the World Trade Organization this year. Russia's 
accession will bring 140 million new consumers into the WTO's 
international rules-based system. This will help U.S. companies who 
have been at a disadvantage in competing with their European and Asian 
counterparts in Russia.
  In order to join the WTO, Russia has been required to make 
substantial reforms to open its economy to international investment. 
These reforms include significant cuts on tariffs impacting 
manufactured goods and agricultural products, as well as a pledge to 
cut farm subsidies in half by 2018. Russia must also allow 100 percent 
foreign ownership of companies in a diverse group of industries, 
including banking, telecommunications, and retail. More importantly, 
Russia will be bound to respect the WTO's intellectual property 
protections and will participate in the organization's system for 
settling trade disputes.
  As chairman of the Subcommittee on Europe and Eurasia, I've visited 
Moscow and have met with representatives of the American Chamber of 
Commerce and many American businesses that are already active in 
Russia. Whether we pass this bill or not, these companies will remain 
in Russia, and the Russian market is too big to ignore. However, let's 
make it easier for U.S. companies to do business in Russia.
  In addition, the Peterson Institute, a prominent economic think tank, 
estimates that if we pass this bill and Russia receives PNTR, U.S. 
exports to Russia will double over the next 5 years from $9 billion to 
$19 billion. This increased trade could support upwards of 50,000 new 
jobs here in the United States.
  This legislation requires the Secretary of State and the trade 
representative to provide Congress with a number of reports that 
explain the steps that they've taken to ensure that Russia is in 
compliance with the WTO. These reports must include updates on what the 
administration is doing to advocate for American investors in Russia, 
including those investors in the Yukos Oil Company, who suffered about 
$12 billion in losses when the Russian Government expropriated the 
company.
  Regarding Moldova, this former state of the Soviet Union joined the 
WTO in 2001. However, because Jackson-Vanik applies to Moldova as well 
as Russia, the U.S. has not been able to offer that country PNTR, and 
this bill will fix that.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. BURTON of Indiana. Madam Speaker, Moldova and Russia are now 
going to be able to participate with the United States in more free 
trade. I think this is a great bill, and I urge my colleagues to 
support it.

                          ____________________