§8909 Mandatory Imposition of Sanctions with Respect to Certain Transactions with Persons That Evade Sanctions Imposed with Respect to the Russian Federation

Summary

The President must block a foreign person’s property and stop all transactions if the President finds that, knowingly on or after August 2, 2017, the person either broke or helped break U.S. rules tied to certain Russia-related orders or the Ukraine Freedom Support Act, or helped move major or deceptive (including structured) transactions for someone already under U.S. sanctions for actions related to the Russian Federation or for that person’s child, spouse, parent, or sibling. The blocking actions use the full powers of the International Emergency Economic Powers Act (IEEPA) to freeze property and bar transactions when the property is in the United States, comes into the United States, or is owned or controlled by a U.S. person. The President can use IEEPA authorities in sections 203 and 205 to carry this out, and violations face penalties under IEEPA section 206(b) and (c). The President may delay applying these sanctions only if he sends Congress a written finding that the waiver is either vital to national security or will help enforce the law, plus a certification about Russia’s steps on the Minsk agreements (Feb 11, 2015; Minsk Protocol Sep 5, 2014; or successor agreements agreed with Ukraine) or, for cyber-related orders, that Russia has made significant efforts to reduce cyber intrusions. The President may lift sanctions if he notifies Congress, explains why, and shows the person stopped the bad activity and gives reliable assurances they will not do it again. Covered Executive Orders are Nos. 13660, 13661, 13662, 13685, 13694, and 13757. “Foreign person” and “structured” use the meanings in the cited federal regulations as of August 2, 2017.