Sec. 1236. Imposition of sanctions with respect to certain persons providing sophisticated goods, services, or technologies for use in the production of major defense equipment or advanced conventional weapons

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Not later than 120 days after the date of enactment of this Act, the President shall submit to the appropriate congressional committees a report that contains a list of persons described in section 1290(a)(1) of the National Defense Authorization Act for Fiscal Year 2017 related to the Russian Federation’s noted violation of the INF Treaty, as noted in the 2016 Report on Adherence to and Compliance With Arms Control, Nonproliferation, and Disarmament Agreements and Commitments. The report required by subparagraph

(A)shall be provided in unclassified form, but may contain a classified annex. In this paragraph, the term appropriate congressional committees has the meaning given such term in section 1290(h) of the National Defense Authorization Act for Fiscal Year 2017. In this subsection, the term INF Treaty means the Treaty Between the United States of America and the Union of Soviet Socialist Republics on the Elimination of Their Intermediate-Range and Shorter-Range Missiles, commonly referred to as the ‘‘Intermediate- Range Nuclear Forces

(INF)Treaty’’, signed at Washington December 8, 1987, and entered into force June 1, 1988. Not later than 180 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report that contains the following: An analysis of the foreign and domestic supply chains in the Russian Federation that directly or indirectly significantly facilitates, supports, or otherwise aids the Government of the Russian Federation’s development, export, sale, or transfer of major defense equipment or advanced conventional weapons. A description of the geographic distribution of the foreign and domestic supply chains described in subparagraph (A), including sources of sophisticated goods, services, or technologies used for or by Russia for the development, export, sale, or transfer of such equipment or weapons. An assessment of the ability of the Russian Government to domestically manufacture or otherwise produce the goods, services, or technology necessary to support the development, export, sale, or transfer of such equipment or weapons. The report required under paragraph

(1)shall be submitted in unclassified form, but may contain a classified annex. In this subsection, the term appropriate congressional committees means— the Committee on Foreign Relations and the Select Committee on Intelligence of the Senate; and the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence of the House of Representatives. Not later than 60 days after the date of the submission of the report under subsection (b), and annually thereafter for 5 years, the President shall submit to the appropriate congressional committees a report that identifies each foreign person and each agency or instrumentality of a foreign state that the President determines is a foreign person or an agency or instrumentality of a foreign state described in subparagraph (B). A foreign person or an agency or instrumentality of a foreign state described in this subparagraph is a foreign person or an agency or instrumentality of a foreign state that— knowingly sells, leases, or otherwise provides significant sophisticated goods, services, or technology, to any entities owned or controlled by the Government of the Russian Federation, or engages in a significant transaction or transactions to sell, lease, or otherwise provide such sophisticated goods, services, or technologies, to entities beneficially owned by the Russian Federation, if such activity under clause

(i)or transaction under clause

(ii)materially contributes to the ability of Russia to develop or produce major defense equipment or advanced conventional weapons. The report required under subparagraph

(A)shall be submitted in unclassified form, but may contain a classified annex. The President shall not be required to identify a foreign person or an agency or instrumentality of a foreign state in a report pursuant to subparagraph

(A)if— the foreign person or the agency or instrumentality of a foreign state notifies the United States Government in advance that it proposes to engage in an activity under subparagraph (B)(i) or a transaction under subparagraph (B)(ii); and the President determines and notifies the appropriate congressional committees in classified form prior to the foreign person or agency or instrumentality of a foreign state engaging in the activity under subparagraph (B)(i) or transaction under subparagraph (B)(ii) that such activity or transaction is in the national interests of the United States. The exception under clause

(i)shall not apply with respect to— an agency or instrumentality of a foreign state the government of which the Secretary of State determines has repeatedly provided support for acts of international terrorism pursuant to section 6(j) of the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act), section 40 of the Arms Export Control Act, section 620A of the Foreign Assistance Act of 1961, or any other relevant provision of law; or any activity under subparagraph (B)(i) or transaction under subparagraph (B)(ii) that involves, directly or indirectly, a foreign state described in subclause (I). Except as provided in subparagraph (C), not later than 180 days after the date of the submission of the report under subsection (b), and annually thereafter for 8 years, the President shall impose one or more of the sanctions described in subparagraph

(B)with respect to any foreign person or agency or instrumentality of a foreign state identified pursuant to paragraph (1). The sanctions described in this subparagraph are the following: No sales of any defense articles, defense services, or design and construction services under the Arms Export Control Act ( 22 U.S.C. 2751 et seq.) may be made to the foreign person or agency or instrumentality of the foreign state. No licenses for export of any item on the United States Munitions List that include the foreign person or agency or instrumentality of the foreign state as a party to the license may be granted. No exports may be permitted to the foreign person or agency or instrumentality of the foreign state of any goods or technologies controlled for national security reasons under the Export Administration Regulations, except that such prohibition shall not apply to any transaction subject to the reporting requirements of title V of the National Security Act of 1947 ( 50 U.S.C. 413 et seq.; relating to congressional oversight of intelligence activities). The President may exercise of all powers granted to the President by the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.) (except that the requirements of section 202 of such Act ( 50 U.S.C. 1701 ) shall not apply) to the extent necessary to block and prohibit all transactions in all property and interests in property of a foreign person or agency or instrumentality of the foreign state 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. The authority to impose sanctions under subclause

(I)shall not include the authority to impose sanctions relating to the importation of goods. In item (aa), the term good has the meaning given such term in section 16 of the Export Administration Act of 1979 ( 50 U.S.C. App. 2415 ) (as continued in effect pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.)). The penalties provided for in subsections

(b)and

(c)of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a violation of regulations promulgated under this section to carry out subclause

(I)to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act. Except as provided in subparagraph (I), the President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act ( 50 U.S.C. 1702 and 1704) for purposes of carrying out subclause (I). The President shall not be required to apply sanctions with respect to a foreign person or an agency or instrumentality of a foreign state identified pursuant to paragraph (1)— if the President certifies to the appropriate congressional committees that the foreign person or agency or instrumentality of the foreign state— is no longer carrying out activities or transactions for which the sanctions were imposed pursuant to this paragraph; or has taken and is continuing to take significant verifiable steps toward terminating the activities or transactions for which the sanctions were imposed pursuant to this paragraph; and the President has received reliable assurances from the foreign person or the agency or instrumentality of the foreign state that it will not carry out any activities or transactions for which sanctions may be imposed pursuant to this paragraph in the future; in the case of procurement of defense articles or defense services by the United States Government under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy requirements essential to the national security of the United States, if the President determines in writing to the appropriate congressional committees that— the foreign person or agency or instrumentality of a foreign state to which the sanctions would otherwise be applied is a sole source supplier of the defense articles or services, that the defense articles or services are essential, and that alternative sources are not readily or reasonably available; and it is in the national interest and the President certifies such determination in writing to the appropriate congressional committees; or if the President certifies in writing to the appropriate congressional committees that the identification of the foreign person or agency or instrumentality of a foreign state would impede the supply by any entity of the Russian Federation of a product or service, or the procurement of such product or service, by the Government of the United States— for purposes of civil aviation safety; or in connection with any space launch conducted for the Government of the United States. The President may waive the application of paragraph

(2)for renewable periods not to exceed 180 days with respect to a foreign person or foreign persons, or agency or instrumentality of a foreign state, if the President— determines that the waiver is important to the national security of the United States; and before the waiver takes effect, briefs the appropriate congressional committees on the waiver and the reason for the waiver. In this subsection: The term advanced conventional weapons includes— such long-range precision-guided munitions, fuel air explosives, cruise missiles, low observability aircraft, other radar evading aircraft, advanced military aircraft, military satellites, electromagnetic weapons, and laser weapons that the President determines enhance offensive capabilities in destabilizing ways; such advanced command, control, and communications systems, electronic warfare systems, or intelligence collection systems that the President determines enhance offensive capabilities in destabilizing ways; the S–300 and S–400 missile defense systems and air superiority fighters; and such other items or systems as the President may, by regulation, determine necessary for purposes of this subsection. The term agency or instrumentality of a foreign state has the meaning given such term in section 1603(b) of title 28, United States Code. The term appropriate congressional committees means— the Committee on Foreign Relations, the Committee on Armed Services, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Finance of the Senate; and the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives. The term foreign person means— an individual who is not a United States person; or a corporation, partnership, or other nongovernmental entity which is not a United States person. The term major defense equipment has the meaning given such term under section 120.8 of title 22, Code of Federal Regulations (as in effect on the date of the enactment of this Act). The term person means— a natural person; a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and any successor to any entity described in clause (ii). The term United States person means— a United States citizen or an alien lawfully admitted for permanent residence to the United States; an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity; or any person in the United States. The Secretary of State, with the concurrence of the Secretary of Defense and in coordination with the heads of other relevant Federal agencies, shall promulgate regulations to determine if a good, service, or technology is sophisticated for purposes of this section. Not later than 90 days after the date of the enactment of this Act, the President shall promulgate regulations for determining beneficial ownership of an entity described in paragraph (1)(B)(ii) to be less than fifty percent ownership. The Secretary of State shall seek to consult and cooperate with United States allies and partners to impose sanctions as required under this subsection and to maximize the effect of these sanctions. This subsection takes effect on the date of the enactment of this Act and applies with respect to activities and transactions described in paragraph

(1)that are carried out on or after such date of enactment. In the case of an agency or instrumentality of the Islamic Republic of Iran or of any other state sponsor of terrorism that engages in the activities described in paragraph (2), the President shall, pursuant to section 6 of the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.)), require a license under the Export Administration Regulations to export, re-export, or transfer to that foreign state, or specific sectors of that foreign state, any item subject to the Export Administration Regulations other than food, medicine, or medical devices. The activities described in this paragraph are the purchase, lease, or acquisition, on or after March 6, 2014, of major defense equipment or advanced conventional weapons from the Russian Federation. The President may suspend the application of the measures described in paragraph

(1)for renewable periods not to exceed 180 days if the President determines and reports to the appropriate congressional committees that it is in the national security interest of the United States to do so. Nothing in this subsection shall be construed to apply to reexports of foreign manufactured items by non-United States persons that contain less than 10 percent United States-origin content, or previously licensed exports, reexports, or transfers. In this subsection: The term advanced conventional weapons has the meaning given such term in subsection (c). The term appropriate congressional committees means the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives. The term Export Administration Regulations means subchapter C of chapter VII of title 15, Code of Federal Regulations (as in effect on the date of the enactment of this Act). The term major defense equipment has the meaning given such term in subsection (c). The term state sponsor of terrorism means a country the government of which the Secretary of State determines has repeatedly provided support for acts of international terrorism pursuant to section 6(j) of the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act), section 40 of the Arms Export Control Act, section 620A of the Foreign Assistance Act of 1961, or any other relevant provision of law. The licensing requirement under paragraph

(1)shall take effect not later than 90 days after the date of the enactment of this Act. Section 231 of the Countering America’s Adversaries Through Sanctions Act ( Public Law 115–44 ; 22 U.S.C. 9525 ) is amended— by redesignating subsections

(d)and

(e)as subsection

(e)and (f), respectively; and by inserting after subsection (c), as amended, the following new subsection: The President shall not be required to apply sanctions to a person described in subsection

(a)for renewable periods not to exceed 180 days with respect to the person if the President certifies in writing to the appropriate congressional committees that— the person— is no longer engaging in the activity described in subsection (a); has taken and is continuing to take significant verifiable steps toward terminating the activity described in that subsection; or has agreed to reduce reliance upon Russian defense or intelligence sectors of the Government of the Russian Federation trade over a specified period; the person is taking specified actions to further the enforcement of this section; and the President has received reliable assurances from the government with primary jurisdiction over the person that the person will not engage in any activity described in subsection

(a)in the future outside of the parameters of any actions specified in subparagraph (A)(ii) or

(iii)of such certification. The certification described in paragraph

(1)shall be transmitted in an unclassified form, and may contain a classified annex. . No provision affecting sanctions under this section or an amendment made by this section shall apply to any portion of a sanction that affects the importation of goods. This section, including the authority to impose sanctions under this section and any sanctions so imposed, and any amendment made by this section shall terminate on the date that is 5 years after the date of the enactment of this Act.

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U.S. Code

public-private-law

Countering America’s Adversaries Through Sanctions Act
Public Law 115-44

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Sec. 1236

Imposition of sanctions with respect to certain persons providing sophisticated goods, services, or technologies for use in the production of major defense equipment or advanced conventional weapons

Pub. L.Public Law 115-44

U.S.C.§ 9525

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