Sec. 807. Prohibition on contracting with persons that have business operations with the Government of the Russian Federation or the Russian energy sector
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Except as provided under subsections (b), (c), and (d), the Secretary of Defense may not enter into a contract for the procurement of goods or services with any person that has business operations with— an authority of the Government of the Russian Federation; or a fossil fuel company that operates in the Russian Federation, except if the fossil fuel company transports oil or gas— through the Russian Federation for sale outside of the Russian Federation; and that was extracted from a country other than the Russian Federation with respect to the energy sector of which the President has not imposed sanctions as of the date on which the contract is awarded. The prohibition under subsection
(a)does not apply to a contract that the Secretary of Defense and the Secretary of State jointly determine— is necessary— for purposes of providing humanitarian assistance to the people of Russia; or for purposes of providing disaster relief and other urgent life-saving measures; is vital to the military readiness, basing, or operations of the United States or the North Atlantic Treaty Organization; or is vital to the national security interests of the United States. The Secretary of Defense shall notify the appropriate congressional committees of any contract entered into on the basis of an exception provided for under paragraph (1). The prohibition in subsection
(a)shall not apply to a person that has a valid license to operate in Russia issued by the Office of Foreign Assets Control of the Department of the Treasury or is otherwise authorized to operate in Russia by the Federal Government notwithstanding the imposition of sanctions. The prohibition in subsection
(a)shall not apply to contracts related to the operation and maintenance of the United States Government’s consular offices and diplomatic posts in Russia. This section shall take effect on the date of the enactment of this Act and apply with respect to any contract entered into on or after such effective date. This section shall terminate on the date on which the President submits to the appropriate congressional committees a certification in writing that contains a determination of the President that the Russian Federation— has reached an agreement relating to the withdrawal of Russian forces and cessation of military hostilities that is accepted by the free and independent government of Ukraine; poses no immediate military threat of aggression to any North Atlantic Treaty Organization member; and recognizes the right of the people of Ukraine to independently and freely choose their own government. In this section: The term appropriate congressional committees means— the Committee on Oversight and Reform, the Committee on Armed Services, and the Committee on Foreign Affairs of the House of Representatives; and the Committee on Homeland Security and Governmental Affairs, the Committee on Armed Services, and the Committee on Foreign Relations of the Senate. The term business operations means engaging in commerce in any form, including acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce. The term fossil fuel company means a person that— carries out oil, gas, or coal exploration, development, or production activities; processes or refines oil, gas, or coal; or transports, or constructs facilities for the transportation of, Russian oil, gas, or coal. The term Government of the Russian Federation includes the government of any political subdivision of Russia, and any agency or instrumentality of the Government of the Russian Federation. For purposes of this paragraph, the term agency or instrumentality of the Government of the Russian Federation means an agency or instrumentality of a foreign state as defined in section 1603(b) of title 28, United States Code, with each reference in such section to a foreign state deemed to be a reference to Russia . The term person means— a natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; any governmental entity or instrumentality of a government, including a multilateral development institution (as defined in section 1701(c)(3) of the International Financial Institutions Act ( 22 U.S.C. 262r(c)(3) )); and any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subparagraph
(A)or (B).
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Sec. 807
Prohibition on contracting with persons that have business operations with the Government of the Russian Federation or the Russian energy sector
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