The newspaper Kommersant has published a full draft of the proposed “Defending American Security from Kremlin Aggression Act,” which demands a U.S. investigation into Vladimir Putin’s personal wealth and whether Russia sponsors terrorism, and would impose a ban on U.S. citizens buying Russian sovereign debt, though the U.S. Treasury publicly opposed this idea in February, warning that it would disrupt the market broadly. Republican Senator Lindsey Graham, one of the initiative’s sponsors, says one of the draft legislation’s goals is to impose “crushing sanctions.”
Kommersant’s August 8 publication of the U.S. legislative initiative knocked the ruble’s exchange value to its lowest point since November 2016, though the text had been circulating among insiders for at least a week.
- Banning the banks. The draft bill proposes banning Russia’s biggest state banks — Sberbank, VTV Bank, Gazprombank, Rosselkhozbank, Promsvyazbank, or Vnesheconombank — from operating inside the United States, which would effectively prevent these institutions from conducting dollar settlements.
- Oil and gas. In the energy sector, the legislation would impose sanctions on investment in any projects by the Russian government or government-affiliated companies outside Russia worth more than $250 million. Businesses would also incur penalties for any participation (funding or supplying equipment or technology) in new oil projects inside Russia valued above $1 million.
- Lists and research. If the bill is submitted in its current form and adopted, the U.S. president would have 180 days to begin implementing its provisions; within 60 days of adoption, the White House would need to provide a new list of Russian individuals suspected of cyber-attacks against the United States; the Treasury Department would have 180 days to update its “Kremlin list” of Russian state officials and oligarchs; the director of national intelligence would be tasked with completing a “detailed report on the personal net worth and assets” of Vladimir Putin and his family; and the State Department would have 90 days to determine whether Russia should be designated as a state sponsor of terrorism.
- A new Sanctions Office. In order to shore up the 2017 Countering America's Adversaries Through Sanctions Act, the draft legislation would also create an “Office of Sanctions Coordination” within the State Department to coordinate work with the Treasury.