H.R. 4278 (113^th): Ukraine Support Act

improving democratic governance, transparency, accountability, rule of law, and anti-corruption efforts;

supporting Ukrainian efforts to foster greater unity among people and regions of the country, combat anti-Semitism and discrimination, and promote respect for religious freedom;

supporting the people and Government of Ukraine in preparing to conduct and participate in free and fair elections, including through domestic and international election monitoring;

assisting Ukraine in diversifying its economy, trade, and energy supplies, including at the national, regional, and local levels;

strengthening democratic institutions and political and civil society organizations; and

expanding free and unfettered access to independent media of all kinds in Ukraine and assisting with the protection of journalists and civil society activists who have been targeted for free speech activities.

The Ukrainian economy is weak and vulnerable, as evidenced by short-term debt interest rates as high as 15 percent, a high proportion of foreign exchange-denominated government debt that will mature in 2014 and 2015, a banking sector with non-performing loans at the high level of 14 percent, a financing gap which the Government of Ukraine has estimated will amount to $35 billion over the next two years, and a large underground economy. This economic condition undermines democratic prospects in Ukraine.

Years of poor economic management and performance have undermined and may continue to undermine political stability and unity within Ukraine.

On March 6, 2014, the House of Representatives passed H.R. 4152, to redirect previously appropriated funds to cover the cost of roughly $1 billion in loan guarantees for Ukraine.

cutting the massive natural gas subsidies that have led to market inefficiencies;

reducing the bloated public sector;

maintaining a market-determined exchange rate;

strengthening the vulnerable banking sector;

promoting a robust, independent, and impartial judiciary, due process, and uniform application of law; and

reducing corruption, such as by supporting reform efforts of the Government of Ukraine to pass legislation related to greater accountability for government officials, greater protection of private property, and increased transparency of government funds.

The Russian Government has deliberately blocked the Ukrainian people’s access to uncensored sources of information and has provided alternative news and information that is both inaccurate and inflammatory.

United States international programming exists to advance the United States interests and values by presenting accurate and comprehensive news and information, which is the foundation for democratic governance.

The opinions and views of the Ukrainian people, especially those people located in the eastern regions and Crimea, are not being accurately represented in Russian dominated mass media.

Russian forces have seized more than five television stations in Crimea and taken over transmissions, switching to a 24/7 Russian propaganda format; this increase in programming augments the already robust pro-Russian programming to Ukraine.

United States international programming has the potential to combat this anti-democratic propaganda.

provide news and information that is accessible, credible, and accurate;

emphasize investigative and analytical journalism to highlight inconsistencies and misinformation provided by Russian or pro-Russian media outlets;

prioritize programming to areas where access to uncensored sources of information is limited or non-existent, especially populations serviced by Russian supported media outlets;

increase the number of reporters and organizational presence in eastern Ukraine, especially in Crimea;

promote democratic processes, respect for human rights, freedom of the press, and territorial sovereignty; and

take necessary preparatory steps to continue and increase programming and content that promotes democracy and government transparency in Russia.

prioritize programming to eastern Ukraine, including Crimea, and Moldova, and to ethnic and linguistic Russian populations, as well as to Tatar minorities;

prioritize news and information that directly contributes to the target audiences’ understanding of political and economic developments in Ukraine and Moldova, including countering misinformation that may originate from other news outlets, especially Russian supported news outlets;

provide programming content 24 hours a day, seven days a week to target populations, using all available and effective distribution outlets, including—

expand the use, audience, and audience engagement of mobile news and multimedia platforms by RFE/RL, Incorporated, and the Voice of America, including through Internet-based social networking platforms; and

partner with private sector broadcasters and affiliates to seek and start co-production for new, original content, when possible, to increase distribution.

to assist Ukraine to eliminate the human rights abuses associated with the Berkut forces in order to foster a democratically reformed police force with strong public oversight, which is critical to fostering political unity and stability throughout Ukraine; and

to assist Ukraine to develop a robust, independent, and impartial judicial system at national, regional, and local levels, which is essential to ensure that the rights of all citizens are respected, and maintain appropriate checks and balances between the co-equal branches of government.

enhancing existing security cooperation, including defense and military-to-military cooperation, among Central and Eastern European NATO member states;

enhancing security relationships among the United States, the European Union, and Central and Eastern European NATO member states;

providing defense articles, defense services, and military training to Central and Eastern European NATO member states;

expanding the scope and frequency of military exercises among Central and Eastern European NATO member states; and

supporting greater reform, professionalism, and capacity-building efforts within the military, intelligence, and security services in Central and Eastern European NATO member states.

in fiscal year 2013 the United States provided Ukraine with nearly $2,000,000 in assistance under chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to International Military Education Training) and nearly $7,000,000 in assistance under section 23 of the Arms Export Control Act (22 U.S.C. 2763; relating to the Foreign Military Financing Program); and

Ukraine has been a longstanding member of NATO’s Partnership for Peace.

United States assistance to Ukraine under chapter 5 of part II of the Foreign Assistance Act of 1961 and section 23 of the Arms Export Control Act should be increased;

consistent with section 506(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2318(a)), the President is encouraged to draw down defense articles from the stocks of the Department of Defense, in order to provide security assistance, which could include communication equipment, clothing, fuel and other forms of appropriate assistance, to the Government of Ukraine; and

the Government of Ukraine should make greater efforts to secure the protection of classified information and military equipment.

In general

Not later than 30 days after the date of the enactment of this Act, the Secretary of State, in consultation with the heads of other appropriate United States departments and agencies, shall submit to Congress a report on the results of a review of all United States security assistance to the Government of Ukraine.

Form

The report required by paragraph (1) shall be submitted in unclassified form but may contain a classified annex.

Article 1 of the Agreement Establishing the European Bank for Reconstruction and Development (EBRD) states that the EBRD should support investments in countries that are committed to and applying the principles of multiparty democracy, pluralism, and market economics, and the EBRD has recognized that Russian progress in the application of these principles … has been uneven.

Russia received 21 percent of the investments made by the EBRD in 2013, which is more than any other country received from the EBRD in that year, and has received an inordinate ratio of investment from the EBRD since the 2006 Capital Resources Review.

the date that is 90 days after the date on which the President submits to the appropriate congressional committees the certification described in subsection (a) of section 206 in accordance with subsection (b) of such section; or

the date that is 30 days after any date subsequent to January 1, 2020, on which the President submits to the appropriate congressional committees in writing a determination that the termination of such sanctions imposed is in the vital national security interests of the United States.

Executive Order 13660 (March 6, 2014; relating to blocking property of certain persons contributing to the situation in Ukraine).

Executive Order 13661 (March 16, 2014; relating to blocking property of additional persons contributing to the situation in Ukraine).

Executive Order 13662 (March 20, 2014; relating to blocking property of additional persons contributing to the situation in Ukraine).

is knowingly responsible for or complicit in, or engaged in, directly or indirectly—

is a current or former senior foreign political figure of the Government of the Russian Federation who has engaged in any activity described in paragraph (1);

operates in the arms or related materiel sector in the Russian Federation that has engaged in any activity described in paragraph (1);

is a current or former senior foreign political figure of an entity that has, or whose members have, knowingly engaged in any activity described in paragraph (1), (2), or (3) or of an entity whose property and interests in property are blocked pursuant to this section;

has knowingly materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity described in paragraph (1), (2), or (3) or of any person whose property and interests in property are blocked pursuant to this section; or

is owned or controlled by, or has acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this section.

In general

The sanctions described in this subsection are the following:

Penalties

A person that violates, attempts to violate, conspires to violate, or causes a violation of paragraph (1)(A) or any regulation, license, or order issued to carry out paragraph (1)(A) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

Regulatory authority

The President shall, not later than 90 days after the date of the enactment of this Act, promulgate regulations as necessary for the implementation of this section.

Exception to comply with united nations headquarters agreement

Sanctions under paragraph (1)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

Rule of construction

Nothing in this section shall be construed to limit the authority of the President to impose additional sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), relevant executive orders, regulations, or other provisions of law.

determines that such a waiver is vital to the national interest of the United States; and

not less than 15 days after the waiver takes effect, submits to the appropriate congressional committees a notice of the waiver and a justification for such waiver.

Report required

Requests by chairperson and ranking member of appropriate congressional committees

Admitted

The term admitted has the meaning given such term in section 101(a)(13)(A) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(13)(A)).

Alien

The term alien has the meaning given such term in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3)).

Financial institution

The term financial institution has the meaning given that term in section 5312 of title 31, United States Code.

Foreign person

The term foreign person means—

Paroled

The term paroled means paroled into the United States under section 212(d)(5) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(5)).

United states person

The term United States person means—

the date that is 90 days after the date on which the President submits to the appropriate congressional committees the certification described in subsection (a) of section 206 in accordance with subsection (b) of such section; or

the date that is 30 days after any date subsequent to January 1, 2020, on which the President submits to the appropriate congressional committees in writing a determination that the termination of this section and the sanctions imposed by this section is in the vital national security interests of the United States.

On March 20, 2014, the Department of the Treasury designated four individuals and one financial institution for acting for or on behalf of or materially assisting, sponsoring, or providing financial, material, or technological support for, or goods or services to or in support of, a senior official of the Government of the Russian Federation.

Widespread corruption at senior levels of the Government of the Russian Federation, in combination with the suppression of political freedoms and the concentration of enormous wealth in the hands of individuals exercising extensive influence over government policy, has contributed to the establishment of an authoritarian system that does not respect the rights of the Russian people.

Asset blocking

The President, acting through the Secretary of the Treasury and in consultation with the Secretary of State (or their designees), is authorized to impose sanctions described in paragraph (1)(A) of section 202(c) in accordance with the provisions of such section against a foreign person if the foreign person is a senior foreign political figure or a close associate of such senior foreign political figure with respect to whom the President, acting through the Secretary of the Treasury and in consultation with the Secretary of State (or their designees), determines meets one or more of the criteria described in subsection (c).

Aliens ineligible for visas, admission, or parole

The Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) is authorized to impose sanctions described in paragraph (1)(B) of section 202(c) in accordance with the provisions of such section against an alien if the alien is a senior foreign political figure or a close associate of such senior foreign political figure with respect to whom the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) knows, or has reason to believe, meets one or more of the criteria described in subsection (c).

The foreign person or alien is responsible for, or complicit in, or responsible for ordering, controlling, or otherwise directing, acts of significant corruption in the Russian Federation, including the expropriation of private or public assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the proceeds of corruption to foreign jurisdictions.

The foreign person or alien has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, an act described in paragraph (1).

On February 26, 2014, the Department of the Treasury’s Financial Crimes Enforcement Network advised United States financial institutions of their responsibility to take reasonable, risk-based steps regarding the potential suspicious movement of assets related to Viktor Yanukovych departing Kyiv and abdicating his responsibilities and other senior officials resigning from their positions or departing Kyiv.

United States financial institutions are required to apply enhanced scrutiny to private banking accounts held by or on behalf of senior foreign political figures and to monitor transactions that could potentially represent misappropriated or diverted state assets, the proceeds of bribery or other illegal payments, or other public corruption proceeds.

On March 3, 2014, the Government of Ukraine announced that it had initiated criminal proceedings against a number of former Ukrainian officials or close associates of former Ukrainian officials.

On March 5, 2014, the European Union, based on information from Ukraine’s Prosecutor General, issued a Council Regulation requiring the European Union to freeze the funds and economic resources of various former Ukrainian officials and their close associates.

The Government of Canada has taken similar action against the same individuals.

The measures being taken against these former Ukrainian officials and their close associates increase the risk that they will seek to move their assets in a deceptive fashion.

Foreign financial institutions should apply similar, enhanced due-diligence and reporting requirements.

The United States has a strong interest in seeing the international financial system protected from illicit financial activity, including money laundering, terrorism and proliferation financing, transnational organized crime, and the misappropriation of state assets, and international sanctions evasion, among others.

The Department of the Treasury possesses a range of authorities to insulate the United States financial system from entities or jurisdictions that pose an illicit financing risk.

In general

Not later than 30 days after the date of the enactment of this Act, and every 180 days thereafter for a period not to exceed 2 years, the Secretary of State and the Secretary of the Treasury shall jointly submit to the appropriate congressional committees a report on—

Form

The report required to be submitted under this subsection shall be submitted in an unclassified form, to the extent appropriate, but may include a classified annex.

In general

The President shall submit the certification described in subsection (a) to the appropriate congressional committees in writing and shall include a justification for the certification.

Form of certification

The certification described in subsection (a) shall be submitted in unclassified form but may contain a classified annex.

An assessment of the security situation in regions neighboring Russia, including Crimea.

The goals and factors shaping the security strategy of the Government of Russia, including potential annexation of non-Russian territory.

Trends in Russian security behavior that would be designed to achieve, or that are consistent with, the goals described in paragraph (2).

An assessment of the global and regional security objectives of the Government of Russia, including objectives that would affect the North Atlantic Treaty Organization, the Middle East, or the People’s Republic of China.

A detailed assessment of the sizes, locations, and capabilities of the nuclear, special operations, land, sea, and air forces of the Government of Russia and how they affect neighboring countries, including Ukraine.

Developments in Russian military doctrine and training and whether the developments have differed from before the annexation of Crimea.

Other security developments involving Russia that the Secretary of State considers relevant to United States national security.

the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and

the Committee on Foreign Relations and the Committee on Armed Services of the Senate.

In general

Not later than 30 days after the date of the enactment of this Act, the President shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report that includes a determination as to whether or not the Russian Federation is in material breach of its obligations under the INF Treaty.

Additional matters to be included

If the President determines that the Russian Federation is in material breach of its obligations under the INF Treaty, the report shall also include the following:

Form

The report required by this subsection shall be submitted in unclassified form but may contain a classified annex.

the Committee on Foreign Affairs and the Committee on Energy and Commerce of the House of Representatives; and

the Committee on Foreign Relations and the Committee on Energy and Natural Resources of the Senate.

Iran continues its longstanding effort to obtain banned components for its nuclear and missile programs in violation of its obligations under successive United Nations Security Council Resolutions.

Russian entities, including Rosoboronexport, have been sanctioned with respect to proliferation activities, particularly sanctions under the Iran, North Korea, and Syria Nonproliferation Act (Public Law 106–178; 50 U.S.C. 1701 note).

The Department of State must expeditiously restore the deterrent effect of the Iran, North Korea, and Syria Nonproliferation Act by fully applying and enforcing such Act.