[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5632 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5632
To impose sanctions with respect to Azerbaijan upon renewed acts of
aggression, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 30, 2025
Mr. Issa (for himself and Mr. Bilirakis) introduced the following bill;
which was referred to the Committee on Foreign Affairs, and in addition
to the Committees on the Judiciary, and Financial Services, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To impose sanctions with respect to Azerbaijan upon renewed acts of
aggression, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preventing Escalation and Advancing
Caucasus Engagement Act'' or the ``PEACE Act''.
SEC. 2. STATEMENT OF POLICY.
It is the policy of the United States to--
(1) support the sovereignty, territorial integrity, and
independence of the Republic of Armenia and the Republic of
Azerbaijan;
(2) support direct negotiations between the governments of
the Republic of Armenia and the Republic of Azerbaijan to
conclude a comprehensive, fair, and durable peace agreement
between the two countries;
(3) utilize sanctions and related measures to deter the use
of force as an alternative to constructive negotiations; and
(4) welcome and support initiatives of the Armenian
Government, led by Prime Minister Nikol Pashinyan, to secure a
long-standing peace agreement with the Republic of Azerbaijan,
expel malign Russian influence from the Republic of Armenia,
and strengthen ties between the Republic of Armenia and the
United States.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``agricultural commodity'' has the meaning
given such term in section 102 of the Agricultural Trade Act of
1978 (7 U.S.C. 5602);
(2) the term ``appropriate congressional committees''
means--
(A) the Committee on Foreign Affairs of the House
of Representatives; and
(B) the Committee on Foreign Relations of the
Senate;
(3) the term ``foreign person'' means any individual or
entity that is not a United States person;
(4) the term ``good'' means any article, natural or man-
made substance, material, supply, or manufactured product,
including inspection and test equipment and excluding technical
data;
(5) the term ``hostile action'' means an act of military
aggression taken by a country that results in significant loss
of life, the disabling of military systems, materiel, or
personnel, the incapacitation of major utility or
transportation infrastructure, or a material breach of another
country's sovereignty, territorial integrity, or political
independence;
(6) the term ``immediate family members'' has the meaning
given the term ``immediate relatives'' in section
201(b)(2)(A)(i) of the Immigration and Nationality Act (8
U.S.C. 1201(b)(2)(A)(i));
(7) 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) 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);
(9) 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);
(10) the term ``military aggression'' means the deliberate
initiation of armed force or other coercive military conduct by
a country, not undertaken in response to an armed attack, that
is reasonably expected to cause substantial harm to the
territorial integrity and sovereignty of another country; and
(11) 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 any jurisdiction within the United
States, including a foreign branch of such an entity;
or
(C) any person within the United States.
SEC. 4. IMPOSITION OF SANCTIONS.
(a) In General.--If the President determines that the Republic of
Azerbaijan has engaged in hostile actions against the Republic of
Armenia, the President--
(1) shall immediately issue a certification to Congress to
that effect; and
(2) upon issuance of such certification--
(A) shall impose against each person described in
subsection (b) the sanctions described in subsection
(c); and
(B) shall impose sanctions against foreign
financial institutions as described in subsection (d).
(b) Persons Described.--A person described in this subsection is
any person that--
(1) is--
(A) a senior Azerbaijani Government official
responsible for the policy and operations of branches
of the Azerbaijani Government directly involved in
hostile actions against the Republic of Armenia; or
(B) an immediate family member of an individual
described in subparagraph (A);
(2) is an Azerbaijani military unit or civilian agency that
has engaged in hostile actions against the Republic of Armenia;
or
(3) is a foreign person that has substantially and
knowingly aided, abetted, taken part in, or otherwise
facilitated hostile actions taken by persons described in
paragraph (1) or (2) against the Republic of Armenia.
(c) Sanctions on Persons Described.--The sanctions described in
this subsection are the following:
(1) Blocking of property.--The President shall 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.--An alien
described in subsection (a) 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.--An alien described in
subsection (a) 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.
(d) Imposition of Sanctions With Respect to Foreign Financial
Institutions.--
(1) In general.--Except as specifically provided in this
subsection, beginning on the date that is 60 days after the
President's certification to Congress under this section, the
President shall prohibit the opening, and prohibit or impose
strict conditions on the maintaining, in the United States of a
correspondent account or a payable-through account by a foreign
financial institution that the President determines has
knowingly conducted or facilitated any significant financial
transaction with any Azerbaijani financial institution
designated by the Secretary of the Treasury to have facilitated
the trade of Azerbaijani petroleum or petroleum products.
(2) Designation.--The Secretary of the Treasury shall--
(A) publish a list of Azerbaijani financial
institutions determined to have facilitated the trade
of Azerbaijani petroleum or petroleum products; and
(B) publish a list of designated foreign financial
institutions subject to prohibitions or conditions
pursuant to paragraph (1).
(3) Exception for sales of agricultural commodities, food,
medicine, and medical devices.--The President may not impose
sanctions under paragraph (1) with respect to any person for
conducting or facilitating a transaction for the sale of
agricultural commodities, food, medicine, or medical devices to
Azerbaijan.
(4) Applicability of sanctions with respect to foreign
central banks.--Except as provided in paragraph (5), sanctions
imposed under paragraph (1) shall apply with respect to a
central bank of a foreign country, only insofar as it engages
in a financial transaction for the sale or purchase of
petroleum or petroleum products to or from Azerbaijan conducted
or facilitated on or after that date that is 180 days after the
President's certification to Congress under this section.
(5) Conditional exemption from sanctions with respect to
petroleum transactions.--Sanctions imposed pursuant to
paragraph (1) shall not apply with respect to a financial
transaction conducted or facilitated by a foreign financial
institution if--
(A) the financial transaction is only for trade in
goods or services between the country with primary
jurisdiction over the foreign financial institution and
Azerbaijan; and
(B) any funds owed to Azerbaijan as a result of
such trade are credited to an account located in the
country with primary jurisdiction over the foreign
financial institution.
(e) Additional Sanctions.--If, at any time during the
implementation of Joint Declaration signed on August 8, 2025, by
Armenia and Azerbaijan, the Secretary of State determines that a person
has knowingly attempted to delay, frustrate, or thwart the successful
conclusion of a peace agreement consistent with the principles of such
Joint Declaration, the President may impose one or more sanctions
described in subsection (c) of this section against that person.
SEC. 5. FURTHER EXCEPTIONS TO SANCTIONS AND WAIVER.
(a) Exceptions.--The sanctions described in section 4 shall not
apply to the following:
(1) 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 to any authorized intelligence activities of
the United States.
(2) The admission of an alien to the United States if such
admission is necessary to comply with United States obligations
under the Agreement between the United Nations and the United
States of America regarding the Headquarters of the United
Nations, signed at Lake Success June 26, 1947, and entered into
force November 21, 1947, or under the Convention on Consular
Relations, done at Vienna April 24, 1963, and entered into
force March 19, 1967, or other applicable international
obligations of the United States.
(3) The conduct or facilitation of a transaction for the
sale of agricultural commodities, food, medicine, or medical
devices to the Republic of Azerbaijan or for the provision of
humanitarian assistance to the people of the Republic of
Azerbaijan, including engaging in a financial transaction
relating to humanitarian assistance or for humanitarian
purposes or transporting goods or services that are necessary
to carry out operations relating to humanitarian assistance or
humanitarian purposes.
(4) The requirement to block and prohibit all transactions
in all property and interests in property under this Act shall
not include the authority or a requirement to impose sanctions
on the importation of goods.
(b) Waiver.--The President may waive application of sanctions
described in section 4 with respect to a person if the President--
(1) determines that the waiver is in the national interests
of the United States; and
(2) submits to the appropriate congressional committees a
report on the waiver and the reasons for the waiver.
SEC. 6. TERMINATION.
(a) In General.--The President may terminate the application of
such sanctions with respect to--
(1) any person that--
(A) has taken genuine and verifiable steps to end
their participation in or facilitation of hostile
actions against the Republic of Armenia for a period of
not less than one year after the application of
sanctions under section 4; and
(B) the President determines does not pose a
substantial risk of re-engaging in hostile actions
against the Republic of Armenia for a period of not
less than one year after the application of sanctions
under section 4; and
(2) any foreign financial institution upon the President's
certification that the Republic of Azerbaijan has ceased all
hostile actions against the Republic of Armenia for a period of
not less than one year after the application of sanctions under
section 4.
(b) Release of Credited Funds.--
(1) In general.--Upon a Presidential certification under
subsection (a)(2) with respect to a foreign financial
institution, the President may authorize the release of any
funds to Azerbaijan which were owed but had been instead
credited to an account pursuant to section 4(d)(5).
(2) Report.--Not later than 15 days after the date on which
funds have been released to Azerbaijan under this subsection,
the President shall transmit to appropriate congressional
committees a report on the release of such funds.
(c) Report.--Not later than 15 days prior to the termination of
sanctions with respect to a person under subsection (a), the President
shall submit a report to the appropriate congressional committees that
includes--
(1) the name and nationality of the person against whom
sanctions are being terminated;
(2) the hostile actions previously committed or facilitated
by such person that led to the imposition of sanctions against
the person;
(3) the genuine and verifiable steps taken by the person to
end the person's participation in or facilitation of hostile
actions against the Republic of Armenia; and
(4) the President's determination that the person does not
pose a substantial risk of re-engaging in hostile actions
against the Republic of Armenia.
SEC. 7. REPORTING REQUIREMENTS.
(a) Presidential Reporting.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, and every 90 days thereafter, the
President shall submit a report to the appropriate
congressional committees that contains a determination as to
whether the Republic of Azerbaijan has engaged in hostile
actions against the sovereign territory of Armenia.
(2) Form.--The report submitted pursuant to paragraph (1)
shall be submitted in unclassified form but may contain a
classified annex.
(b) Annual Review.--Not later than one year after the imposition of
sanctions pursuant to this Act, and no less frequently than annually
thereafter, the President shall submit a report to the appropriate
congressional committees describing the status of any sanctions imposed
pursuant to section 4, including an assessment of the effectiveness of
the sanctions.
SEC. 8. SUNSET.
The provisions of this Act shall expire on the date that is 7 years
after the date of the enactment of this Act.
SEC. 9. SEVERABILITY.
If any provision of this Act, or the application thereof, is held
invalid, the remainder of this Act and the application of such
provision to other persons or circumstances shall not be affected
thereby.
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