Protecting Europe’s Energy Security Act of 2019

II Calendar No. 169 116TH CONGRESS 1ST SESSION S. 1441 To impose sanctions with respect to the provision of certain vessels for the construction of Russian energy export pipelines, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 14, 2019 Mr. CRUZ (for himself, Mrs. SHAHEEN, Mr. BARRASSO, Mr. COTTON, Mr. JOHNSON, and Mr. GARDNER) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations JULY 31, 2019 Reported by Mr. RISCH, with an amendment [Strike out all after the enacting clause and insert the part printed in italic] A BILL To impose sanctions with respect to the provision of certain vessels for the construction of Russian energy export pipelines, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protecting Europe’s 4 Energy Security Act of 2019’’. 5 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 2 •S 1441 RS SEC. 2. SENSE OF CONGRESS. 1 It is the sense of Congress that— 2 (1) the United States and Europe share a com- 3 mon history, a common identity, and common values 4 built upon the principles of democracy, rule of law, 5 and individual freedoms; 6 (2) the United States has encouraged and ad- 7 mired the European project, which has resulted in a 8 common market and common policies, has achieved 9 unprecedented prosperity and stability on the con- 10 tinent, and serves as a model for other countries to 11 reform their institutions and prioritize 12 anticorruption measures; 13 (3) the relationships between the United States 14 and Europe and the United States and Germany are 15 critical to the national security interests of the 16 United States as well as to global prosperity and 17 peace, and Germany in particular is a crucial part- 18 ner for the United States in multilateral efforts 19 aimed at promoting global prosperity and peace; 20 (4) the United States should stand against any 21 effort designed to weaken those relationships; and 22 (5) Germany has demonstrated leadership with- 23 in the European Union and in international fora to 24 ensure that sanctions imposed with respect to the 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 3 •S 1441 RS Russian Federation for its malign activities are 1 maintained. 2 SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO PRO- 3 VISION OF CERTAIN VESSELS FOR THE CON- 4 STRUCTION OF RUSSIAN ENERGY EXPORT 5 PIPELINES. 6 (a) REPORT REQUIRED.—Not later than 60 days 7 after the date of the enactment of this Act, and every 90 8 days thereafter, the Secretary of State shall submit to the 9 appropriate congressional committees a report that identi- 10 fies, for the period beginning on the date of the enactment 11 of this Act and ending on the date of the report— 12 (1) vessels that engaged in pipe-laying at 13 depths of 100 feet or more below sea level for the 14 construction of Russian energy export pipelines; and 15 (2) foreign persons that have sold, leased, pro- 16 vided, or facilitated the provision of those vessels for 17 the construction of such pipelines. 18 (b) INADMISSIBILITY TO UNITED STATES OF IDENTI- 19 FIED PERSONS AND CORPORATE OFFICERS.—The Sec- 20 retary of State shall deny a visa to, and the Secretary of 21 Homeland Security shall exclude from the United States 22 of, any alien who is— 23 (1) a foreign person identified under subsection 24 (a)(2); 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 4 •S 1441 RS (2) a corporate officer of a person described in 1 paragraph (1); or 2 (3) a principal shareholder with a controlling 3 interest in a person described in paragraph (1). 4 (c) BLOCKING OF PROPERTY OF IDENTIFIED PER- 5 SONS.—The President shall exercise all powers granted to 6 the President by the International Emergency Economic 7 Powers Act (50 U.S.C. 1701 et seq.) to the extent nec- 8 essary to block and prohibit all transactions in all property 9 and interests in property of any person identified under 10 subsection (a)(2) if such property and interests in prop- 11 erty are in the United States, come within the United 12 States, or are or come within the possession or control 13 of a United States person. 14 (d) SANCTIONS FOR PROVISION OF UNDERWRITING 15 SERVICES OR INSURANCE OR REINSURANCE FOR IDENTI- 16 FIED VESSELS.— 17 (1) IN GENERAL.—The President may impose 5 18 or more of the sanctions described in paragraph (2) 19 with respect to a foreign person if the President de- 20 termines that the person knowingly, on or after the 21 date of the enactment of this Act, provides under- 22 writing services or insurance or reinsurance for a 23 vessel identified under subsection (a)(1). 24 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 5 •S 1441 RS (2) SANCTIONS DESCRIBED.—The sanctions 1 that may be imposed with respect to a foreign per- 2 son under paragraph (1) are the following: 3 (A) EXPORT-IMPORT BANK ASSISTANCE 4 FOR EXPORTS TO SANCTIONED PERSONS.—The 5 President may direct the Export-Import Bank 6 of the United States not to give approval to the 7 issuance of any guarantee, insurance, extension 8 of credit, or participation in the extension of 9 credit in connection with the export of any 10 goods or services to the foreign person. 11 (B) EXPORT SANCTION.—The President 12 may order the United States Government not to 13 issue any specific license and not to grant any 14 other specific permission or authority to export 15 any goods or technology to the foreign person 16 under— 17 (i) the Export Control Reform Act of 18 2018 (50 U.S.C. 4801 et seq.); 19 (ii) the Arms Export Control Act (22 20 U.S.C. 2751 et seq.); 21 (iii) the Atomic Energy Act of 1954 22 (42 U.S.C. 2011 et seq.); or 23 (iv) any other statute that requires 24 the prior review and approval of the 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 6 •S 1441 RS United States Government as a condition 1 for the export or reexport of goods or serv- 2 ices. 3 (C) LOANS FROM UNITED STATES FINAN- 4 CIAL INSTITUTIONS.—The United States Gov- 5 ernment may prohibit any United States finan- 6 cial institution from making loans or providing 7 credits to the foreign person totaling more than 8 $10,000,000 in any 12-month period unless 9 such person is engaged in activities to relieve 10 human suffering and the loans or credits are 11 provided for such activities. 12 (D) PROHIBITIONS ON FINANCIAL INSTI- 13 TUTIONS.—The following prohibitions may be 14 imposed with respect to the foreign person if 15 the foreign person is a financial institution: 16 (i) PROHIBITION ON DESIGNATION AS 17 PRIMARY DEALER.—Neither the Board of 18 Governors of the Federal Reserve System 19 nor the Federal Reserve Bank of New 20 York may designate, or permit the continu- 21 ation of any prior designation of, such fi- 22 nancial institution as a primary dealer in 23 United States Government debt instru- 24 ments. 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 7 •S 1441 RS (ii) PROHIBITION ON SERVICE AS A 1 REPOSITORY OF GOVERNMENT FUNDS.— 2 Such financial institution may not serve as 3 agent of the United States Government or 4 serve as repository for United States Gov- 5 ernment funds. 6 The imposition of either sanction under clause 7 (i) or (ii) shall be treated as 1 sanction for pur- 8 poses of paragraph (1), and the imposition of 9 both such sanctions shall be treated as 2 sanc- 10 tions for purposes of paragraph (1). 11 (E) PROCUREMENT SANCTION.—The 12 United States Government may not procure, or 13 enter into any contract for the procurement of, 14 any goods or services from the foreign person. 15 (F) FOREIGN EXCHANGE.—The President 16 may, pursuant to such regulations as the Presi- 17 dent may prescribe, prohibit any transactions in 18 foreign exchange that are subject to the juris- 19 diction of the United States and in which the 20 foreign person has any interest. 21 (G) BANKING TRANSACTIONS.—The Presi- 22 dent may, pursuant to such regulations as the 23 President may prescribe, prohibit any transfers 24 of credit or payments between financial institu- 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 8 •S 1441 RS tions or by, through, or to any financial institu- 1 tion, to the extent that such transfers or pay- 2 ments are subject to the jurisdiction of the 3 United States and involve any interest of the 4 foreign person. 5 (H) PROPERTY TRANSACTIONS.—The 6 President may, pursuant to such regulations as 7 the President may prescribe, prohibit any per- 8 son from— 9 (i) acquiring, holding, withholding, 10 using, transferring, withdrawing, trans- 11 porting, importing, or exporting any prop- 12 erty that is subject to the jurisdiction of 13 the United States and with respect to 14 which the foreign person has any interest; 15 (ii) dealing in or exercising any right, 16 power, or privilege with respect to such 17 property; or 18 (iii) conducting any transaction in- 19 volving such property. 20 (I) BAN ON INVESTMENT IN EQUITY OR 21 DEBT OF SANCTIONED PERSON.—The President 22 may, pursuant to such regulations or guidelines 23 as the President may prescribe, prohibit any 24 United States person from investing in or pur- 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 9 •S 1441 RS chasing significant amounts of equity or debt 1 instruments of the foreign person. 2 (J) EXCLUSION OF CORPORATE OFFI- 3 CERS.—The President may direct the Secretary 4 of State to deny a visa to, and the Secretary of 5 Homeland Security to exclude from the United 6 States, any alien that the President determines 7 is a corporate officer or principal of, or a share- 8 holder with a controlling interest in, the foreign 9 person. 10 (K) SANCTIONS ON PRINCIPAL EXECUTIVE 11 OFFICERS.—The President may impose on the 12 principal executive officer or officers of the for- 13 eign person, or on persons performing similar 14 functions and with similar authorities as such 15 officer or officers, any of the sanctions under 16 this paragraph. 17 (e) EXCEPTIONS.— 18 (1) EXCEPTION TO COMPLY WITH UNITED NA- 19 TIONS HEADQUARTERS AGREEMENT.—Sanctions 20 under this subsection shall not apply with respect to 21 the admission of an alien to the United States if the 22 admission of the alien is necessary to permit the 23 United States to comply with the Agreement regard- 24 ing the Headquarters of the United Nations, signed 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 10 •S 1441 RS at Lake Success June 26, 1947, and entered into 1 force November 21, 1947, between the United Na- 2 tions and the United States, the Convention on Con- 3 sular Relations, done at Vienna April 24, 1963, and 4 entered into force March 19, 1967, or other applica- 5 ble international obligations. 6 (2) EXCEPTION RELATING TO IMPORTATION OF 7 GOODS.— 8 (A) IN GENERAL.—A requirement or the 9 authority to block and prohibit all transactions 10 in all property and interests in property under 11 this section shall not include the authority to 12 impose sanctions on the importation of goods. 13 (B) GOOD DEFINED.—In this paragraph, 14 the term ‘‘good’’ means any article, natural or 15 man-made substance, material, supply or manu- 16 factured product, including inspection and test 17 equipment, and excluding technical data. 18 (f) NATIONAL SECURITY WAIVER.—The President 19 may waive the application of sanctions under this section 20 with respect to a person if the President— 21 (1) determines that the waiver is in the national 22 security interests of the United States; and 23 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 11 •S 1441 RS (2) submits to the appropriate congressional 1 committees a report on the waiver and the reasons 2 for the waiver. 3 (g) IMPLEMENTATION; PENALTIES.— 4 (1) IMPLEMENTATION.—The President may ex- 5 ercise all authorities provided to the President under 6 sections 203 and 205 of the International Emer- 7 gency Economic Powers Act (50 U.S.C. 1702 and 8 1704) to carry out this section. 9 (2) PENALTIES.—A person that violates, at- 10 tempts to violate, conspires to violate, or causes a 11 violation of this section or any regulation, license, or 12 order issued to carry out this section shall be subject 13 to the penalties set forth in subsections (b) and (c) 14 of section 206 of the International Emergency Eco- 15 nomic Powers Act (50 U.S.C. 1705) to the same ex- 16 tent as a person that commits an unlawful act de- 17 scribed in subsection (a) of that section. 18 (h) DEFINITIONS.—In this section: 19 (1) ADMISSION; ADMITTED; ALIEN.—The terms 20 ‘‘admission’’, ‘‘admitted’’, and ‘‘alien’’ have the 21 meanings given those terms in section 101 of the 22 Immigration and Nationality Act (8 U.S.C. 1101). 23 (2) APPROPRIATE CONGRESSIONAL COMMIT- 24 TEES.—The term ‘‘appropriate congressional com- 25 VerDate Sep 11 2014 23:44 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6401 E:\BILLS\S1441.RS S1441 kjohnson on DSK79L0C42 with BILLS 12 •S 1441 RS mittees’’ means the Committee on Foreign Relations 1 of the Senate and the Committee on Foreign Affairs 2 of the House of Representatives. 3 (3) FOREIGN PERSON.—The term ‘‘foreign per- 4 son’’ means an individual or entity that is not a 5 United States person. 6 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 7 respect to conduct, a circumstance, or a result, 8 means that a person has actual knowledge, or should 9 have known, of the conduct, the circumstance, or the 10 result. 11 (5) UNITED STATES PERSON.—The term 12 ‘‘United States person’’ means— 13 (A) a United States citizen or an alien law- 14 fully admitted for permanent residence to the 15 United States; or 16 (B) an entity organized under the laws of 17 the United States or any jurisdiction within the 18 United States, including a foreign branch of [Text truncated for display. 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