[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3661-S3665]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6529. Mr. RISCH (for himself and Mrs. Shaheen) submitted an
amendment intended to be proposed by him to the bill S. 4784, to
authorize appropriations for fiscal year 2027 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the end, add the following:
DIVISION E--SHADOW FLEET SANCTIONS ACT OF 2026
SEC. 1. SHORT TITLE.
This division may be cited as the ``Sanctioning Harborers
And Dodgers Of Western Sanctions Act of 2026'' or the
``SHADOW Fleet Sanctions Act of 2026''.
TITLE I--SANCTIONS WITH RESPECT TO THE RUSSIAN FEDERATION
SEC. 101. DEFINITIONS.
In this title:
(1) Adequate maritime insurance.--
(A) In general.--The term ``adequate maritime insurance''
means--
(i) verified documentation evidencing protection and
indemnity insurance, cargo insurance, and hull and machinery
insurance, with audited financial statements of the insurer;
(ii) records demonstrating compliance with relevant
statutes and regulations regarding the insured subject
matter; and
(iii) a commitment to provide, upon reasonable request,
evidence needed by the insurer, reinsurer, or broker to
satisfy themselves or any regulator of such compliance.
(B) Exclusion.--The term ``adequate maritime insurance''
does not include insurance provided by an insurer that--
(i) is organized under the laws of the Russian Federation;
and
(ii) continues to provide coverage to any vessel designated
for the imposition of sanctions under the laws of the United
States, the European Union, or the United Kingdom without a
specific waiver of or exception to the application of such
sanctions.
(2) Admitted; alien; lawfully admitted for permanent
residence.--The terms ``admitted'', ``alien'', and ``lawfully
admitted for permanent residence'' have the meanings given
those terms in section 101 of the Immigration and Nationality
Act (8 U.S.C. 1101).
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(B) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
(4) Beneficial owner.--The term ``beneficial owner'' means,
with respect to a vessel, any individual who, directly or
indirectly, through any contract, arrangement, understanding,
relationship, or otherwise--
(A) exercises substantial control over the vessel; or
(B) owns not less than 25 percent of the vessel.
(5) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(6) Foreign vessel.--The term ``foreign vessel'' means a
vessel that is not a vessel of the United States (as defined
in section 116 of title 46, United States Code).
(7) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(8) Petroleum product.--The term ``petroleum product''
means oil of any kind or in any form, crude oil, gasoline,
diesel fuel, aviation fuel, fuel oil, kerosene, any product
obtained from refining or processing of crude oil, liquefied
petroleum gases, natural gas liquids, petrochemical
feedstocks, condensate, waste or refuse mixtures containing
any of such oil products, and any other liquid hydrocarbon
compounds.
(9) Russian-origin petroleum product.--The term ``Russian-
origin petroleum product'' means a petroleum product
extracted, refined, processed, or otherwise produced in the
Russian Federation.
(10) Russian person.--The term ``Russian person'' means--
(A) a citizen or national of the Russian Federation; or
(B) an entity organized under the laws of the Russian
Federation or otherwise subject to the jurisdiction of the
Government of the Russian Federation.
(11) Russian shadow fleet.--The term ``Russian shadow
fleet'' means any foreign vessel or vessels used or directed
by or on behalf of the Russian Federation to transport
Russian-origin petroleum products in circumvention of
sanctions imposed with respect to the Russian Federation by
the United States, the United Kingdom, the European Union, or
other countries.
(12) Sabotage activities.--The term ``sabotage activities''
means actions, or preparations for actions, taken with the
intent to cause defective production, operation, or damage to
critical undersea infrastructure, including energy pipelines,
offshore energy facilities, or subsea power lines and
telecommunications cables and associated landing stations and
facilities.
(13) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully admitted
for permanent residence to the United States;
(B) an entity organized under the laws of the United States
or of any jurisdiction within the United States, including a
foreign branch of such an entity; or
(C) a person in the United States.
Subtitle A--Sanctions With Respect to Russian Shadow Fleet
PART I--IMPOSITION OF SANCTIONS
SEC. 111. IMPOSITION OF SANCTIONS WITH RESPECT TO VESSELS
SUSPECTED OF PARTICIPATION IN OR SUPPORT OF THE
RUSSIAN SHADOW FLEET.
(a) In General.--Beginning on the date of the enactment of
this Act, the President may impose the sanctions described in
section 181 with respect to any Russian shadow fleet vessel
that, on or after the date of the enactment of this Act,
transports Russian-origin petroleum products in circumvention
of sanctions imposed with respect to the Russian Federation
by the United States, the United Kingdom, the European Union,
or other countries, including--
(1) any Russian shadow fleet vessel the owner or operator
of which knowingly--
(A) exhibits or engages in unsafe or nonstandard maritime
behavior in furtherance of the transportation of Russian-
origin petroleum products that originated in the Russian
Federation; or
(B) lacks adequate maritime insurance for the transport of
goods described in subparagraph (A);
(2) any foreign person that the President determines
knowingly--
(A) owns, operates, or manages a vessel described in
paragraph (1);
(B) provides underwriting services or insurance or
reinsurance necessary for such a vessel after sanctions are
imposed with respect to the vessel;
(C) facilitates deceptive or structured transactions to
support a vessel described in paragraph (1);
(D) provides services or facilities for technology upgrades
or installation of equipment for, or retrofitting or
tethering of, a vessel described in paragraph (1) for the
purpose of evading sanctions;
(E) provided services for the testing, inspection, or
certification for a vessel described in paragraph (1) for the
purpose of evading sanctions;
(F) serves as a master of such a vessel; or
(G) transfers to the Russian Federation any foreign vessel
designed to transport Russian-origin petroleum products.
(b) Vessels Subject to Sanctions by the United Kingdom or
the European Union.--Beginning on the date of the enactment
of this Act, the President may impose the sanctions described
in section 181 with respect to any vessel that, on or after
such date of enactment, is--
(1) subject to sanctions with respect to the Russian
Federation imposed by the United Kingdom, the European Union,
the Group of 7, or a member of the Five Eyes intelligence
alliance; or
(2) owned or operated by a person subject to such
sanctions.
(c) Indicators of Unsafe or Nonstandard Maritime
Behavior.--In determining under subsection (a)(1)(A) if a
vessel is exhibiting or engaged in unsafe or nonstandard
maritime behavior, the President may use as prima facie
evidence that the vessel is exhibiting or engaged in such
behavior if the vessel has exhibited 3 or more indicators of
such behavior, including the following:
(1) Has refused to take on a pilot in accordance with best
practices of the International Maritime Organization.
(2) Does not respond when hailed by appropriate maritime
authority.
(3) Turns off the Automatic Identification System of the
vessel without explanation or report to the appropriate
maritime authority within a reasonable period of time.
(4) Engages in unsafe maritime maneuvers with another
vessel.
(5) Is uninsured or underinsured, including any vessel that
is insured by an insurance company organized under the laws
of the Russian Federation or the Islamic Republic of Iran.
(6) Is single-hulled contrary to standards of the
International Maritime Organization.
(7) Has changed ownership or flag registry more than once
in the previous year.
(8) Has a history of deliberately losing power or turning
off transmitters without a compelling security need.
(9) Has not been properly maintained, based on credible
evidence.
(10) Has been involved in a recent maritime or
environmental incident.
[[Page S3662]]
(11) Is escorted by the military of the Russian Federation.
(12) Has engaged in sabotage activities.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter, the
President shall submit to the appropriate congressional
committees a report that describes any sanctions imposed
under this section, including a brief description of each
foreign person and foreign vessel with respect to which
sanctions are imposed and the justification for such
sanctions.
SEC. 112. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN
PERSONS THAT SUPPORT RUSSIAN ILLICIT SHIPPING
WITH VESSELS SUBJECT TO UNITED STATES
SANCTIONS.
(a) In General.--Beginning on the date of the enactment of
this Act, the President may impose the sanctions described in
section 181 with respect to a foreign person if the President
determines that the foreign person, on or after the date of
the enactment of this Act, has engaged in a transaction
described in subsection (b) with a Russian shadow fleet
vessel that is subject to sanctions imposed by the United
States.
(b) Transactions Described.--A transaction described in
this subsection is any of the following:
(1) The conduct of any ship-to-ship transfer involving
Russian-origin petroleum products with a Russian shadow fleet
vessel.
(2) The provision of significant goods or services in
support of a Russian shadow fleet vessel with the knowledge
that the vessel is subject to sanctions imposed by the United
States, unless such goods or services are provided to respond
to an emergency.
(3) In the case of the owner or operator of a foreign port,
allowing a Russian shadow fleet vessel to port or otherwise
receive services at the foreign port, unless that vessel
needs to port or receive services as a result of an
emergency.
(4) In the case of a foreign person that is the owner or
operator of a refinery, knowingly engaging in a transaction
to process, refine, or otherwise deal in any Russian
Federation-origin petroleum products that were transported on
a Russian shadow fleet vessel.
SEC. 113. IMPOSITION OF SANCTIONS WITH RESPECT TO PORT
TERMINALS ACCEPTING OIL FROM RUSSIAN SHADOW
FLEET VESSELS.
Beginning on the date of the enactment of this Act, the
President may impose the sanctions described in section 181
with respect to any foreign person that owns or operates a
port in the People's Republic of China or the Republic of
India that accepts oil from foreign vessels with respect to
which the United States has imposed sanctions.
PART II--DISCLOSURES, PUBLICATIONS, AND REPORTS
SEC. 121. ALIGNMENT OF DESIGNATION AUTHORITIES WITH EUROPEAN
UNION AND UNITED KINGDOM REGARDING RUSSIAN
SHADOW FLEET.
(a) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and every 180 days thereafter, the
Secretary of State, through the head of the Office of
Sanctions Coordination and in coordination with the Secretary
of the Treasury and the Director of the Office of Foreign
Assets Control of the Department of the Treasury, shall
submit to the appropriate congressional committees a report
that includes a list of each foreign vessel subject to
sanctions imposed by the European Union or the United Kingdom
that is determined to operate as part of the Russian shadow
fleet.
(2) Justification.--For any vessel listed in a report under
paragraph (1) that is not subject to sanctions imposed by the
United States, the report shall include the justification
provided by the European Union or the United Kingdom, as the
case may be, for designation of the vessel (if that
justification is available to the public) and a brief
justification of the reason provided by the European Union or
the United Kingdom.
(b) Strategy.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of State, through
the head of the Office of Sanctions Coordination and in
coordination with the Secretary of the Treasury and the
Director of the Office of Foreign Assets Control, shall
produce a strategy for enhancing alignment of sanctions
designation authorities of the United States regarding
vessels supporting the Russian shadow fleet with those
authorities of the European Union and the United Kingdom.
SEC. 122. SUPPORT OF EFFORTS OF THE JOINT EXPEDITIONARY
FORCE.
(a) Sense of Congress.--It is the sense of Congress that
the United States supports the efforts of the Joint
Expeditionary Force to track, monitor, deter, and if
necessary, respond to operations and illicit activities of
the Russian shadow fleet.
(b) Statement of Policy.--It shall be the policy of the
United States to use relevant maritime elements of the United
States Government to support and amplify the authorized
efforts of the Joint Expeditionary Force.
SEC. 123. REPORT ON SPECIFIC LICENSES GRANTED UNDER EXECUTIVE
ORDER 14024.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, and every 90 days thereafter, the
Secretary of State, in coordination with the Secretary of the
Treasury, shall submit to the appropriate congressional
committees a report listing any specific license granted or
in effect under Executive Order 14024 (50 U.S.C. 1701 note;
relating to blocking property with respect to specified
harmful foreign activities of the Government of the Russian
Federation).
(b) Form.--Each report required under subsection (a) shall
be submitted in classified form.
PART III--FLAG STATE REQUIREMENTS AND STRATEGY
SEC. 131. MINIMUM STANDARDS FOR OPERATING AS A FLAG STATE
REGISTRY AND ASSESSMENT OF EFFORTS TO PREVENT
THE CIRCUMVENTION OF SANCTIONS AND OTHER
CRIMES.
It is the policy of the United States that the government
of a country is complying with the minimum standards required
by the United States for maintaining an open flag registry
if, on balance, the government--
(1) has enacted and implemented laws and established
government structures, policies, and practices that prohibit
and generally deter the use of its flag registry as a
mechanism to circumvent sanctions imposed by the United
States, the United Kingdom, the European Union, or other
Group of 7 countries, including prohibiting its flag to
continue to fly on vessels that are subject to sanctions
imposed by any such country or jurisdiction;
(2) has enacted and implemented laws and established
government structures, policies, and practices that prohibit
and generally deter the use of its flag registry to avoid
detection of illicit activities, including drug trafficking,
illicit arms shipments, human trafficking, and illegal,
unreported, and unregulated fishing activities;
(3) enforces the laws described in paragraphs (1) and (2)
by punishing any person found, through a fair judicial
process, to have violated those laws;
(4) takes steps to ensure ships flying its flag comply with
well-established industry standards and best practices
relating to maritime activities, including adhering to
resolutions and warnings promulgated by the International
Maritime Organization, such as Resolution A.1192(33)
(December 6, 2023) relating to urging member states and all
relevant stakeholders to promote actions to prevent illegal
operations in the maritime sector by the ``dark fleet'' or
``shadow fleet'';
(5) responds to credible reports from other countries and
private entities warning of vessels flying its flag engaging
in maritime behavior that poses safety risks, such as not
allowing pilot access or turning off Automatic Identification
Systems without adequate justification;
(6) takes steps to ensure vessels flying its flag adhere to
measures that lawfully prohibit and regulate ship-to-ship
transfers of oil or petroleum products subject to sanctions;
(7) takes steps to ensure vessels flying its flag possess
adequate and credible insurance to cover the costs of
maritime accidents;
(8) takes steps to ensure vessels are operating under
transparent ownership structures, including by verifying the
beneficial ownership and management of vessels; and
(9) takes steps to ensure vessels do not avoid flag state
or port state control inspections or avoid commercial
screenings and inspections.
SEC. 132. STRATEGY FOR COUNTRIES THAT DO NOT MAKE SUFFICIENT
EFFORTS TO COMPLY WITH MINIMUM STANDARDS FOR
OPERATING AS A FLAG STATE.
Not later than one year after the date of the enactment of
this Act, and annually thereafter through 2030, the Secretary
of State, in consultation with the heads of appropriate
Federal agencies, shall--
(1) conduct an assessment of countries that do not meet the
minimum standards for operating as a flag state registry in
compliance with United States policy, including the standards
described in section 131; and
(2) submit to the appropriate congressional committees a
strategy for identifying and engaging with those countries.
PART IV--OTHER MATTERS
SEC. 141. INTERNATIONAL EFFORTS TO IDENTIFY VESSELS
TRANSPORTING RUSSIAN-ORIGIN OIL.
It shall be the policy of the United States--
(1) to fully promote the recommendations made by Resolution
A.1192(33) of the International Maritime Organization,
adopted on December 6, 2023;
(2) to use the voice and vote of the United States in
international organizations and engage other relevant
multilateral bodies, such as the North Atlantic Treaty
Organization and the European Union, to strongly encourage
the governments of all countries to adopt those
recommendations, including the recommendation that a port
state, when the state becomes aware of a vessel intentionally
taking measures to avoid detection, such as switching off its
Automatic Identification System or long-range identification
and tracking system transmissions or concealing its actual
identity, should, following an initial investigation to
verify that the vessel has not stopped transmitting signals
for legitimate reasons--
(A) subject the vessel to enhanced inspections as
authorized through relevant mechanisms of the port state; and
(B) notify the flag administration of the vessel, as
appropriate; and
(3) to encourage governments of all countries to deny
access to ports and services for any vessel that, following
an initial investigation, is found to have turned off its
transponder or entered false information for the purpose of
conducting a transfer of or
[[Page S3663]]
transaction for crude oil of Russian Federation origin or
refined petroleum products made from such oil.
Subtitle B--Sanctions With Respect to Russian-origin Energy Products
SEC. 151. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS
WITH CERTAIN INTERESTS IN RUSSIAN ENERGY
PROJECTS.
(a) In General.--Beginning on the date of the enactment of
this Act, the President may impose the sanctions described in
section 181 with respect to any foreign person the President
determines is, on or after such date of enactment, a leader,
official, senior executive officer, or member of the board of
directors of, or principal shareholder with a controlling or
majority interest in, any of the following Russian energy
projects:
(1) The Yamal Liquified Natural Gas Project or a successor
project.
(2) The Arctic 1, 2, and 3 Liquified Natural Gas Projects
or a successor project.
(3) Any project in the Arctic region or the Russian Far
East carried out after the date of the enactment of this Act.
(b) Sense of Congress.--It is the sense of Congress that--
(1) countries that rely on Russian energy projects,
including Sakhalin-1 and Sakhalin-2, TurkStream 1 and 2, and
the Druzhba pipeline, should work to expeditiously end their
dependence on such projects and diversify their sources of
energy to exports from other countries, including the United
States; and
(2) the European Union should remain committed to firm
deadlines set forth in the RePowerEU Roadmap for the phasing
out of energy exported from the Russian Federation.
SEC. 152. STRATEGY TO COUNTER ROLE OF THE PEOPLE'S REPUBLIC
OF CHINA IN EVASION OF SANCTIONS WITH RESPECT
TO RUSSIAN-ORIGIN PETROLEUM PRODUCTS.
(a) In General.--Not later than 120 days after the date of
the enactment of this Act, the Secretary of State, in
consultation with the heads of other appropriate Federal
agencies, shall submit to the appropriate congressional
committees a written strategy, and provide to those
committees an accompanying briefing, on the role of the
People's Republic of China in evasion of sanctions imposed by
the United States with respect to Russian-origin petroleum
products that includes an assessment of options--
(1) to strengthen the enforcement of such sanctions; and
(2) to expand sanctions designations targeting the
involvement of the People's Republic of China in the
production, transportation, storage, refining, and sale of
Russian-origin petroleum products.
(b) Elements.--The strategy required by subsection (a)
shall include--
(1) a description and assessment of the use of sanctions in
effect before the date of the enactment of this Act to target
individuals and entities of the People's Republic of China
that are directly or indirectly associated with smuggling of
Russian-origin petroleum products;
(2) an assessment of--
(A) Russian-owned entities operating in the People's
Republic of China and involved in petroleum refining supply
chains;
(B) the People's Republic of China's role in Russian
petroleum refining supply chains;
(C) how the People's Republic of China leverages its role
in Russian petroleum supply chains to achieve political
objectives; and
(D) what percent of the energy consumption of the People's
Republic of China is linked to imported Russian-origin
petroleum products;
(3) a detailed plan for--
(A) monitoring the maritime domain for sanctionable
activity related to the transportation of Russian-origin
petroleum products;
(B) identifying the individuals, entities, and vessels
engaging in sanctionable activity related to Russian-origin
petroleum products, including--
(i) vessels--
(I) transporting petrochemicals of Russian Federation
origin;
(II) conducting ship-to-ship transfers of such
petrochemicals;
(III) with deactivated automatic identification systems; or
(IV) that engage in ``flag hopping'' by frequently changing
national registries;
(ii) individuals or entities--
(I) storing petrochemicals subject to sanctions; or
(II) refining or otherwise processing such petrochemicals;
and
(iii) through the use of port entry and docking permission
of vessels subject to sanctions;
(C) deterring individuals and entities from violating
sanctions by educating and engaging--
(i) insurance providers;
(ii) parent companies; and
(iii) vessel operators;
(D) collaborating with allies and partners of the United
States engaged in the Northern Europe, including through
standing or new maritime task forces, to build sanctions
enforcement capacity through assistance and training to
defense and law enforcement services; and
(E) using public communications and global diplomatic
engagements to highlight the role of smuggling of Russian-
origin petroleum products in bolstering the Russian
Federation's war efforts in Ukraine and support for other
malign activity; and
(4) an assessment of--
(A) the total number of vessels transporting Russian-origin
petroleum products;
(B) the total number of vessels smuggling such products
destined for the People's Republic of China;
(C) interference by the People's Republic of China with
attempts by the United States, the United Kingdom, or the
European Union to investigate or enforce sanctions with
respect to Russian-origin petroleum products;
(D) the effectiveness of the use of sanctions with respect
to insurers of entities that own or operate vessels involved
in transporting Russian-origin petroleum products;
(E) the personnel and resources needed to enforce sanctions
with respect to Russian-origin petroleum products; and
(F) the impact of smuggled Russian-origin petroleum
products on global energy markets.
(c) Form.--The strategy required by subsection (a) shall be
submitted in unclassified form but may include a classified
index.
Subtitle C--Sanctions With Respect to Russian Defense Industrial Base
SEC. 161. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS
THAT SELL, LEASE, OR PROVIDE GOODS OR SERVICES
RELATING TO THE DEFENSE INDUSTRIAL BASE OF THE
RUSSIAN FEDERATION.
(a) Report Required.--Not later than 60 days after the date
of the enactment of this Act, and every 90 days thereafter,
the Secretary of State, in consultation with the Secretary of
the Treasury, shall submit to the appropriate congressional
committees a report that identifies, for the period covered
by the report each foreign person that the Secretary of
State, in consultation with the Secretary of the Treasury and
the Secretary of Commerce, determines has knowingly--
(1) sold, leased, provided, or facilitated selling,
leasing, or providing goods or services relating to the
defense industrial base of the Russian Federation,
including--
(A) computer numerical control (CNC) tools and associated
machinery, software, and maintenance or upgrade services;
(B) lubricant additives;
(C) semiconductors and associated manufacturing equipment;
(D) items on the Common High Priority Items List maintained
by the Bureau of Industry and Security of the Department of
Commerce;
(E) nitrocellulose, wood cellulose, and associated
additives and components necessary for the production of
propellant or energetics for munitions;
(F) fiber optic cables with military applications and
associated technologies needed to manufacture such cables;
(G) advanced sensors; and
(H) any additional items identified by the Secretary of
State, in consultation with the Secretary of Commerce, that
are critical to the defense industrial base of the Russian
Federation; or
(2) facilitated deceptive or structured transactions to
provide the goods and services described by paragraph (1).
(b) Ineligibility for Visas, Admission, or Parole of
Identified Persons and Corporate Officers.--
(1) In general.--
(A) Visas, admission, or parole.--An alien described in
paragraph (2) shall be--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other documentation to
enter the United States; and
(iii) otherwise ineligible to be admitted or paroled into
the United States or to receive any other benefit under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--The visa or other entry documentation of
an alien described in paragraph (2) shall be revoked,
regardless of when such visa or other entry documentation is
or was issued.
(ii) Immediate effect.--A revocation under clause (i)
shall--
(I) take effect immediately; and
(II) automatically cancel any other valid visa or entry
documentation that is in the possession of the alien.
(2) Aliens described.--An alien described in this paragraph
is an alien who is--
(A) identified in a report required by subsection (a);
(B) a corporate officer of a foreign entity identified in
that report; or
(C) a principal shareholder with a controlling interest in
a foreign entity described in subparagraph (A).
(c) Blocking of Property of Identified Persons.--The
President may exercise all powers granted to the President by
the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) to the extent necessary to block and prohibit
all transactions in all property and interests in property of
any person identified in a report required by subsection (a)
if such property and interests in property are in the United
States, come within the United States, or are or come within
the possession or control of a United States person.
(d) Wind-down Period.--The President may not impose
sanctions under this section with respect to a person
identified in the first report submitted pursuant to
subsection (a) if the President certifies in such report that
the person has, not later than 30 days after the date of the
enactment of this Act, engaged in good faith efforts to wind
down operations that would otherwise subject the person to
the imposition of sanctions under this section.
[[Page S3664]]
Subtitle D--Modifications of Protecting Europe's Energy Security Act of
2019
SEC. 171. MODIFICATIONS OF PROTECTING EUROPE'S ENERGY
SECURITY ACT OF 2019.
Section 7503 of the Protecting Europe's Energy Security Act
of 2019 (title LXXV of Public Law 116-92; 22 U.S.C. 9526
note) is amended--
(1) in subsection (a)(1)(B)(v), by striking ``the Nord
Stream 2 pipeline'' and inserting ``the Nord Stream 1
pipeline, the Nord Stream 2 pipeline, or a successor to
either such pipeline'';
(2) in subsection (e)--
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively;
(3) by amending subsection (f) to read as follows:
``(f) National Security Waiver.--
``(1) In general.--The President may waive the application
of sanctions under this section if--
``(A) the President--
``(i) determines such a waiver is in the national security
interests of the United States; and
``(ii) not later than 30 days before the waiver takes
effect, submits to the appropriate congressional committees a
report on the waiver and the reasons for the waiver; and
``(B) a joint resolution prohibiting the waiver is not
enacted into law during the 30-day period described in
subparagraph (A)(ii).
``(2) Consideration of joint resolutions.--
``(A) In general.--A joint resolution described in
paragraph (1)(B) introduced in either House of Congress shall
be considered in accordance with the provisions of section
601(b) of the International Security Assistance and Arms
Export Control Act of 1976 (Public Law 94-329; 90 Stat. 765),
except that the resolution shall be subject to germane
amendments.
``(B) Consideration of veto messages.--If joint resolution
described in paragraph (1)(B) is vetoed by the President, the
time for debate in consideration of the veto message on the
resolution shall--
``(i) in the Senate, be limited to 20 hours; and
``(ii) in the House of Representatives, be determined in
accordance with the Rules of the House.''; and
(4) in subsection (h)--
(A) by striking paragraph (2);
(B) by striking ``terminate'' and all that follows through
``the date on which'' and inserting ``terminate on the date
on which'';
(C) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and by moving such
paragraphs, as so redesignated, 2 ems to the left; and
(D) in paragraph (2), as redesignated, by striking ``; or''
and inserting a period.
Subtitle E--General Provisions
SEC. 181. SANCTIONS DESCRIBED.
The sanctions described in this section that may be imposed
with respect to a foreign person are the following:
(1) Blocking of property.--The President may exercise all
of the powers granted to the President under the
International Emergency Economic Powers Act ( 50 U.S.C. 1701
et seq.) to the extent necessary to block and prohibit all
transactions in property and interests in property of the
foreign person if such property and interests in property are
in the United States, come within the United States, or are
or come within the possession or control of a United States
person.
(2) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--A foreign person that is
an alien is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other documentation to
enter the United States; and
(iii) otherwise ineligible to be admitted or paroled into
the United States or to receive any other benefit under the
Immigration and Nationality Act ( 8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--A foreign person that is an alien is
subject to revocation of any visa or other entry
documentation regardless of when the visa or other entry
documentation is or was issued.
(ii) Immediate effect.--A revocation under clause (i) shall
take effect immediately and automatically cancel any other
valid visa or entry documentation that is in the alien's
possession.
SEC. 182. EXCEPTIONS; WAIVERS.
(a) Exceptions.--
(1) Exception relating to importation of goods.--
(A) In general.--A requirement to block and prohibit all
transactions in all property and interests in property under
this title shall not include the authority or a requirement
to impose sanctions on the importation of goods.
(B) Good.--In this paragraph, the term ``good'' means any
article, natural or manmade substance, material, supply, or
manufactured product, including inspection and test
equipment, and excluding technical data.
(2) Exception to comply with united nations headquarters
agreement and law enforcement activities.--Sanctions under
this title shall not apply with respect to the admission of
an alien to the United States if admitting or paroling the
alien into the United States is necessary--
(A) to permit the United States to comply with the
Agreement regarding the Headquarters of the United Nations,
signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, between the United Nations and the United
States, or other applicable international obligations of the
United States; or
(B) to carry out or assist authorized law enforcement
activity in the United States.
(3) Exception to comply with intelligence activities.--
Sanctions under this title shall not apply to any activity
subject to the reporting requirements under title V of the
National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any
authorized intelligence activities of the United States.
(4) Humanitarian assistance.--
(A) In general.--Sanctions under this title shall not apply
to--
(i) the conduct or facilitation of a transaction for the
provision of agricultural commodities, food, medicine,
medical devices, humanitarian assistance, or for humanitarian
purposes; or
(ii) transactions that are necessary for or related to the
activities described in clause (i).
(B) Definitions.--In this paragraph:
(i) Agricultural commodity.--The term ``agricultural
commodity'' has the meaning given that term in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
(ii) Medical device.--The term ``medical device'' has the
meaning given the term ``device'' in section 201 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
(iii) Medicine.--The term ``medicine'' has the meaning
given the term ``drug'' in section 201 of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 321).
(5) Exception for safety of vessels and crew and
decommissioning or demolition of vessels.--Sanctions under
this title shall not apply with respect to--
(A) a person providing provisions to a vessel otherwise
subject to sanctions under this title if the provisions are
intended for--
(i) the safety and care of the crew aboard the vessel;
(ii) the protection of human life aboard the vessel; or
(iii) the maintenance of the vessel to avoid any
environmental or other significant damage; or
(B) a person providing services to a vessel otherwise
subject to sanctions under this title if--
(i) the vessel fails to meet international maritime vessel
safety standards; and
(ii) the services are necessary to ensure the safe
decommissioning or destruction of the vessel.
(6) Annual report.--Not later than 1 year after the date of
the enactment of this Act, and annually thereafter, the
President shall submit to the appropriate congressional
committees a report that describes each activity that would
be sanctionable under this title if not covered by an
exception under this subsection.
(b) Waiver.--
(1) In general.--The President may, on a case-by-case basis
and for periods not to exceed 180 days each, waive the
application of sanctions imposed with respect to a foreign
vessel or a foreign person under this title if the President
certifies to the appropriate congressional committees, not
later than 15 days after such waiver is to take effect, that
the waiver is in the national security interests of the
United States.
(2) Certification.--The President shall not be required to
impose sanctions under this title with respect to a foreign
person who has engaged in activity subject to sanctions under
this title if the President certifies in writing to the
appropriate congressional committees that the foreign
person--
(A) is no longer engaging in such activities; or
(B) has taken and is continuing to take significant,
verifiable steps toward permanently terminating such
activities.
(c) Rule of Construction.--Nothing in this section shall be
construed to affect the availability of any existing
authorities to issue waivers, exceptions, exemptions,
licenses, or other authorization.
SEC. 183. IMPLEMENTATION.
(a) Implementation.--The President may exercise all
authorities under sections 203 and 205 of the International
Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for
purposes of carrying out this title.
(b) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
title or any regulation, license, or order issued to carry
out this title may be subject to the penalties set forth in
subsections (b) and (c) of section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1705) to the same
extent as a person that commits an unlawful act described in
subsection (a) of that section.
SEC. 184. TERMINATION OF SANCTIONS AUTHORITIES.
The requirements and authorities to impose sanctions under
subtitles A, B, and C, and any sanctions imposed under those
subtitles, shall terminate on the date that is 10 years after
the date of the enactment of this Act.
TITLE II--OTHER MATTERS
SEC. 201. DETERMINATION WITH RESPECT TO RUSSIAN MILITARY
ACTIONS IN SUPPORT OF RUSSIAN SHADOW FLEET.
(a) In General.--The President may determine, at such times
as are required under subsection (b), whether--
(1) the Government of the Russian Federation, including
through any of its proxies, is
[[Page S3665]]
engaged in or knowingly supporting an escalation of military
measures in the Gulf of Finland, the Baltic Sea, or the
Straits of Denmark, including to deter members of the North
Atlantic Treaty Organization from inspecting vessels
transporting Russian-origin petroleum products or posing a
threat to undersea infrastructure to ensure such vessels are
adhering to accepted maritime standards; and
(2) if the President makes a positive determination under
paragraph (1), whether that escalation increases the risk of
an incident at sea, including damage to undersea cable
infrastructure.
(b) Timing of Determinations.--The President may make the
determination described in subsection (a)--
(1) not later than 15 days after the date of the enactment
of this Act;
(2) after the first determination under paragraph (1), not
less frequently than every 30 days (or more frequently as
warranted) during the 1-year period beginning on such date of
enactment; and
(3) after the end of that 1-year period, not less
frequently than every 90 days.
(c) Report Required.--Upon making a determination under
subsection (a), the President shall submit a report on the
determination to--
(1) the committees specified in subsection (d);
(2) the majority leader and the minority leader of the
Senate; and
(3) the Speaker and the minority leader of the House of
Representatives.
(d) Committees Specified.--The committees specified in this
subsection are--
(1) the Committee on Foreign Relations, the Committee on
Armed Services, and the Select Committee on Intelligence of
the Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Armed Services, and the Permanent Select Committee on
Intelligence of the House of Representatives.
SEC. 202. RESOURCES FOR SANCTIONS IMPLEMENTATION AT THE
DEPARTMENT OF STATE.
(a) Sense of Congress.--It is the sense of Congress that
sanctions are a vital foreign policy and national security
tool, and as such, it is critical that the Department of
State and other agencies with responsibilities relating to
sanctions across the executive branch--
(1) are fully staffed, including through the prompt
confirmation by the Senate of a qualified head of the Office
of Sanctions Coordination of the Department of State; and
(2) have the resources and infrastructure necessary for the
successful development and implementation of sanctions.
(b) Increasing Resources and Improving Modernization for
Sanctions Implementation.--The head of the Office of
Sanctions Coordination shall take steps to modernize the
sanctions infrastructure and increase resources dedicated to
implementing sanctions, including by--
(1) ensuring the Department of State has necessary
subscriptions and access to open-source databases for
purposes of making determinations to support the designation
of persons for the imposition of sanctions;
(2) equipping bureaus involved in drafting and reviewing
evidentiary packages to support such designations with
sufficient technical resources to do so, including an
adequate number of workstations that can be used to review
classified information; and
(3) increasing the number of personnel dedicated to making
and reviewing such designations.
(c) Report on Modernizations Efforts.--Not later than 180
days after the date of the enactment of this Act, the head of
the Office of Sanctions Coordination shall submit to the
Committee on Foreign Relations of the Senate and the
Committee on Foreign Affairs of the House of Representatives
a report describing steps the Department of State is taking
to address challenges in the ability of the Department to
support the designation of persons for the imposition of
sanctions.
(d) Authorizations of Appropriation.--
(1) Office of sanctions coordination.--There is authorized
to be appropriated to the Office of Sanctions Coordination
for each of fiscal years 2026 and 2027 $15,000,000 to carry
out this section.
(2) Office of foreign assets control.--There is authorized
to be appropriated to the Office of Foreign Assets Control of
the Department of the Treasury for each of fiscal years 2026
and 2027 $15,000,000 to carry out this section.
SEC. 203. MODIFICATION OF LIMITATION ON MILITARY COOPERATION
BETWEEN THE UNITED STATES AND THE RUSSIAN
FEDERATION.
Section 1232 of the National Defense Authorization Act for
Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2488) is
amended--
(1) by striking subsections (c) and (d); and
(2) by redesignating subsections (e) and (f) as subsections
(c) and (d), respectively.
SEC. 204. EMERGENCY APPROPRIATIONS FOR THE COUNTERING RUSSIAN
INFLUENCE FUND.
(a) Emergency Appropriations.--
(1) Authorization of appropriation.--There is authorized to
be appropriated, out of any money in the Treasury not
otherwise appropriated, $200,000,000 to the Secretary of
State for fiscal years 2026 and 2027 for the Countering
Russian Influence Fund to provide additional support to
Ukraine and allies of the United States in Central and
Eastern Europe in the wake of aggression by the Russian
Federation, including assistance combating Russian Federation
information operations, sabotage activities, cyber threats,
and security threats.
(2) Emergency designation.--
(A) In general.--The amounts provided under paragraph (1)
are designated as an emergency requirement pursuant to
section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2
U.S.C. 933(g)).
(B) Designation in the senate and the house of
representatives.--This subsection is designated as an
emergency requirement pursuant to subsections (a) and (b) of
section 4001 of S. Con. Res. 14 (117th Congress), the
concurrent resolution on the budget for fiscal year 2022.
(b) Report Required.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, and every 180 days thereafter, the
Secretary of State shall submit to the appropriate committees
of Congress a report that contains a description of the
activities carried out pursuant to this section.
(2) Form.--The strategy required by paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex if necessary.
(c) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committee on Foreign Relations and the Committee on
Appropriations of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives.
SEC. 205. REPORT ON PRESIDENTIAL DRAWDOWN AUTHORITY AND
UKRAINE SECURITY ASSISTANCE INITIATIVE.
(a) In General.--Not later than 30 days after the date of
the enactment of this Act, and every 30 days thereafter, the
Secretary of State and the Secretary of Defense shall jointly
submit to the appropriate committees of Congress a report
that includes--
(1) the status of remaining amounts available for Ukraine
under the Presidential drawdown authority provided in the
Additional Ukraine Supplemental Appropriations Act, 2022
(Public Law 117-128; 136 Stat. 1211) and the Ukraine Security
Supplemental Appropriations Act (Public Law 118-50; 138 Stat.
905);
(2) a description of all defense articles and services
provided to Ukraine under Presidential drawdown authority,
Foreign Military Financing, and the Ukraine Security
Assistance Initiative under section 1250 of the National
Defense Authorization Act for Fiscal Year 2016 (Public Law
114-92; 129 Stat. 1068); and
(3) a description of the readiness requirements,
valuations, and replenishment calculations used to determine
the availability of inventory to transfer to Ukraine.
(b) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committee on Foreign Relations, the Committee on
Armed Services, and the Committee on Appropriations of the
Senate; and
(2) the Committees on Foreign Affairs, the Committee on
Armed Services, and the Committee on Appropriations of the
House of Representatives.
SEC. 206. SUPPORT FOR UKRAINE ARMS SALES.
For any letter of offer to sell or license to export
defense articles or defense services to Ukraine that would
require a numbered certification to Congress required by
section 36 of the Arms Export Control Act (22 U.S.C. 2776),
the President shall not offer such letter of offer or issue
such license until 15 days have elapsed from the time such
numbered certification is provided to Congress,
notwithstanding the requirements of such section for 30 days,
and any joint resolution of disapproval shall be eligible for
a motion to discharge from the Committee on Foreign Relations
of the Senate 5 days after introduction.
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