[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5058 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 5058
To require the imposition of sanctions with respect to purchases of
crude oil from the Russian Federation.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 29, 2022
Mr. Cassidy introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To require the imposition of sanctions with respect to purchases of
crude oil from the Russian Federation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Breaking Russia's Energy Addicted
Kleptocracy and Punishing Uncivil Tyrant Invading Neighbor Act of
2022'' or the ``BREAK PUTIN Act of 2022''.
SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO PURCHASES OF CRUDE OIL
FROM RUSSIAN FEDERATION.
(a) Purchases of Crude Oil From Russian Federation.--
(1) List required.--Not later than 60 days after the date
of the enactment of this Act, and every 30 days thereafter, the
President shall submit to Congress a list of foreign persons
the President determines knowingly purchase, on or after the
date that is 30 days after the date of the enactment of this
Act, crude oil produced in the Russian Federation.
(2) Imposition of sanctions.--The President shall, pursuant
to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of a foreign person on the
list required by paragraph (1) 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.
(b) Facilitation of Purchases of Crude Oil From Russian
Federation.--
(1) List required.--Not later than 60 days after the date
of the enactment of this Act, and every 30 days thereafter, the
President shall submit to Congress a list of foreign financial
institutions, insurance companies, brokering services,
international trading houses, port operators, and shipping
companies that the President determines have knowingly, on or
after the date that is 30 days after the date of the enactment
of this Act, facilitated any significant financial transaction
for the purchase of crude oil produced in the Russian
Federation.
(2) Imposition of sanctions.--The President shall, pursuant
to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of an entity on the list
required by paragraph (1) 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.
(3) Exception for crude oil purchases complying with
certain conditions.--
(A) Report required.--Not later than 30 days after
the date of the enactment of this Act, and every 60
days thereafter, the Administrator of the Energy
Information Administration, in consultation with the
Secretary of the Treasury, the Secretary of State, and
the Director of National Intelligence, shall submit to
Congress a report on the average marginal cost of
production of crude oil throughout the Russian
Federation during the 60-day period preceding the
submission of the report.
(B) Establishment of price cap russian crude oil.--
Not later than 30 days after the date of the enactment
of this Act, and every 60 days thereafter, the
President shall establish a price cap for crude oil
produced in the Russian Federation, which shall be not
more than 15 percent more than the average marginal
cost of production of crude oil throughout the Russian
Federation, as set forth in the most recent report
submitted under subparagraph (A).
(C) Exception.--Sanctions imposed pursuant to
paragraph (2) shall not apply with respect to a foreign
financial institution for facilitating a financial
transaction for the purchase of crude oil from the
Russian Federation if--
(i) the purchase price of the crude oil
does not exceed the most recent price cap
determined under subparagraph (B);
(ii) the funds used to purchase the crude
oil are deposited into an account managed by
the Secretary of the Treasury; and
(iii) funds in the account are available to
the Russian Federation only for purchases of
non-luxury consumers goods, including food,
medicine, and medical devices, the purchase of
which is not subject to sanctions imposed by
the United States.
(D) Release of funds in account.--Funds in the
account described in subparagraph (C)(ii) may be
repatriated to the Russian Federation only if, at a
minimum, the following conditions are met:
(i) The Russian Federation signs a peace
agreement with Ukraine.
(ii) The Russian Federation withdraws all
Armed Forces of the Russian Federation from
both land and seaports in Ukraine, including
Crimea.
(iii) The Organization for Security and Co-
operation in Europe verifies that all such
forces have been withdrawn.
(iv) The President determines that such
funds will not be used for purposes of harming
the United States or other countries.
(4) Waiver.--The President may waive the imposition of
sanctions under paragraph (2) for a period of not more than 120
days, and may renew that waiver for additional periods of not
more than 120 days, if the President--
(A) determines that such a waiver is in the
national interest of the United States; and
(B) submits to Congress a report--
(i) providing a justification for the
waiver; and
(ii) that includes any concrete cooperation
the President has received or expects to
receive as a result of the waiver.
(c) Task Force.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, the President shall establish an
interagency task force, which shall be responsible for--
(A) combating illicit trade by the Russian
Federation to evade sanctions imposed under subsections
(a) and (b) using foreign financial institutions,
insurance companies, brokering services, international
trading houses, port operators, and shipping companies;
and
(B) rapidly declassifying intelligence and issuing
demarches to foreign governments and entities involved
in purchases of crude oil from the Russian Federation
subject to such sanctions.
(2) Composition.--The task force established under
paragraph (1) shall, at a minimum, include representatives of
the following:
(A) The Department of State.
(B) The Department of Energy.
(C) The Department of Commerce.
(D) The Department of Homeland Security.
(E) The Department of the Treasury.
(F) The intelligence community (as defined in
section 3(4) of the National Security Act of 1947 (50
U.S.C. 3003(4))).
(3) Use of satellite data mapping radio frequency
emissions.--The task force established under paragraph (1)
shall, to the extent practicable, make use of commercial space-
based radio frequency data--
(A) to map radio frequency emissions in maritime
areas of interest;
(B) to identify vessels not transmitting Automated
Identification System information; and
(C) to geolocate vessels involved in efforts to
evade sanctions imposed under subsection (a) or (b).
(4) Access to, use of, and handling of information of other
federal agencies.--In carrying out activities under paragraph
(1), the task force established under paragraph (1) shall, to
the extent practicable, be provided with access to all reports
or other information of any Federal agency that the task force
determines necessary to carry out those activities--
(A) upon written request to the agency in
possession of the information;
(B) subject to limitations under applicable
provisions of law;
(C) consistent with the protection of sources and
methods, law enforcement strictures, protection of
proprietary information of businesses, and protection
of personally identifiable information; and
(D) subject to all restrictions required by the
source of the information.
(d) Increase in United States Crude Oil Production and Refining
Capacity.--The President shall--
(1) take all necessary steps to increase the production and
refining of crude oil in the United States; and
(2) conduct outreach to Canada and Mexico to encourage
those countries to increase their production of crude oil--
(A) to ensure there is a sufficient supply of crude
oil from countries other than the Russian Federation;
and
(B) to minimize any impact on the price of crude
oil resulting from the imposition of sanctions under
this section.
(e) Form of Reports.--Each report submitted under this section
shall be submitted in unclassified form, but may contain a classified
annex.
(f) Implementation; Penalties.--
(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out this section.
(2) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of this section or a license, order,
regulation, or prohibition issued under this section to the
same extent that such penalties apply to a person that commits
an unlawful act described in section 206(a) of that Act.
(g) Definitions.--In this section:
(1) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning of that term as
determined by the Secretary of the Treasury in regulations.
(2) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(3) United states person.--The term ``United States
person'' means--
(A) an individual who is a United States citizen or
an alien lawfully admitted for permanent residence to
the United States;
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity;
or
(C) any person in the United States.
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