Congress preparing list of new sanctions against Russian banks

House Democrats is discussing new sanctions against Russia that would come as punishment for Russian interference into the 2016 presidential elections detailed in the Special Counsel Robert Mueller’s report. Additional sanctions are targeting Russian sovereign debt, financial institutions and energy sector.

The hearing entitled “Assessing the Use of Sanctions in Addressing National Security and Foreign Policy Changes” was held Wednesday in the Rayburn House Office Building. House Financial Services Subcommittee was going to discuss the bill “to respond to and deter Russian attacks on the integrity of the United States elections, and for other purposes.” The bill also includes a list of restrictions that may be applied if Russia tries to meddle into the American elections in future.

According to the document, in response to Russia’s interference  into 2016 and 2018 United States Elections Democrats want to impose the following sanctions:

— Prohibition on transactions relating to new sovereign debt of the Russian Federation. Not later than 60 days after the date of the enactment of the Act, the Secretary of the Treasury shall prescribe regulations prohibiting United States persons from engaging in transactions with, providing financing for, or otherwise dealing in, Russian sovereign debt issued on or after the date that is 90 days after such date of enactment.” (‘Russian sovereign debt’ refers to bonds issued by the Central Bank, the National Wealth Fund, or the Federal Treasury with a maturity of more than 14 days; foreign exchange swap agreements or any other financial instrument

— that was issued by a Russian financial institution on behalf of the Russian Government, the maturity of which is more than 14 days).

— Sanctions on Russian Financial Institutions. On and after the date that is 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall include on the Specially Designated Nationals And Blocked Persons list (hereinafter in this Act referred to as the ‘‘SDN List’’) any Russian financial institution that the President determines has provided financial or other support for interference by the Government of the Russian Federation in the 2016 or 2018 elections held in the United States.

— Mandatory Disclosure. Not later than 90 days after the date of the enactment of the Act, the Secretary of the Treasury shall prescribe regulations requiring any United States person to disclose any equity interest such person holds in Vnesheconombank, Sberbank, VTB Bank, Gazprombank, Rosselkhozbank, or Promynvestbank.

— Sanctions on Russia supported Energy Investments. All of the energy projects not located within the Russian Federation and in which a Russian company invests not less than $5,000,000, shall be included on the SDN List not later than 90 days after the day of the enactment.
If Russia Interferes the US elections in future the following restrictions would be imposed:

— Prohibition on new investment in the Russian Energy Sector. Within 90 days of a determination of election interference by the government of the Russian Federation the Secretary of the Treasury shall issue regulations that prohibit any new investment by United States person in the energy sector or energy companies, and impose sanctions on any foreign person that makes investments in the Russian energy sector, yet the routine maintenance of existing energy projects will be allowed.

— Sanctions on Financial Institutions and Investment funds. Within 90 days of determination of election interference, by the Government of the Russian Federation pursuant to subsection, The Treasury Secretary shall impose sanctions on one or more financial institutions and investment funds owned by the Russian Federation that were not subject to sanctions prior to the date of such determination.

Natalia Veselnitskaya — official website

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