HR4825-118

1. Short title This Act may be cited as the No Illegal Oil from Russia Act of 2023.

2. Diplomatic strategy to enhance international compliance with the Russian oil price cap policy Not later than 180 days after the date of enactment of this Act, the Secretary of State and the Secretary of the Treasury shall jointly submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a strategy to enhance international compliance with the Russian oil price cap policy. The strategy under subsection (a) shall include— an overview of general international compliance with the Russian oil price cap policy; a list of the countries known to have purchased significant quantities of Russian oil at prices above the price agreed to in the Russian oil price cap policy set forth by the Group of Seven (G7) nations; any known methods used by such countries to avoid detection of their purchases of Russian oil at prices above the price agreed to in the Russian oil price cap policy; an assessment of possible incentives the United States could provide to countries listed pursuant to paragraph (2) to encourage compliance with the Russian oil price cap policy; an assessment of whether the imposition of additional sanctions, including possible secondary sanctions, would enhance international compliance with the Russian oil price cap policy; a description of the views of the government of each country participating in the Russian oil price cap policy regarding whether the price cap under such policy should be lowered or not; and a description of the United States diplomatic engagement with the government of each country participating in the Russian oil price cap policy regarding the appropriateness of the current cap, including any diplomatic engagement intended to encourage support for the lowering of the price cap.

3. Reports on global impact of the Russian oil price cap policy Not later than 60 days after the date of enactment of this Act, and every 90 days thereafter until the date described in subsection (d), the Secretary of State, in coordination with the Secretary of the Treasury and the Secretary of Energy, shall submit to the appropriate congressional committees a report on the global impact of the Russian oil price cap policy. Each report under subsection (a) shall include an analysis of the impact of the Russian oil price cap policy during the 90-day period covered by the report, and a forecast of such impact over the subsequent 180 days, with respect to the following metrics: Global crude oil prices, including a comparison of global crude oil prices over time since December 2022, and the price set in the oil price cap policy. The volume and sale price of Russian crude and refined oil product exports. Revenue earned by the Russian Federation through exports of oil products. Russian oil production levels. Revenue collected by entities located in a G7 country, the European Union, or Australia that provide maritime services including— trading and commodities brokering; financing; shipping; insurance, including reinsurance and protection and indemnity; and flagging; and customs brokering. The economies of G7 countries, member states of the European Union, and Australia. In this section, the term appropriate congressional committees means— the Committee on Foreign Relations and the Committee on Energy and Natural Resources of the Senate; and the Committee on Foreign Affairs and the Committee on Energy and Commerce of the House of Representatives. The date described in this subsection is the earlier of the following: The date that is 3 years after the date of enactment of this Act. The date on which the Russian oil price cap policy ceases to be in effect.

4. Imposition of sanctions Not later than 180 days after the date of the enactment of this Act, the President shall, pursuant to subsection (b), block the assets of any foreign person that the President determines is a foreign vessel that knowingly transports Russian oil in contravention of the Russian oil price cap policy. Notwithstanding the requirements of section 202 of the International Emergency Economic Powers Act (50 U.S.C. 1701), the President may exercise all powers granted to the President by that Act to the extent necessary to block and prohibit all transactions in all property and interests in property of the foreign person 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. Sanctions under this section shall not apply with respect to a vessel registered under the jurisdiction of— a member country of the European Union; Australia; or a G7 country. Sanctions under this section may not be imposed with respect to transactions or the facilitation of transactions for— the provision of humanitarian assistance; and transporting goods or services that are necessary to carry out operations relating to humanitarian assistance or humanitarian purposes; Sanctions under this section shall not apply with respect to a person providing provisions to a vessel otherwise subject to sanctions under this section if such provisions are intended for the safety and care of the crew aboard the vessel, the protection of human life aboard the vessel, or the maintenance of the vessel to avoid any environmental or other significant damage. The following activities shall be exempt from sanctions under this section: Activities subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.). Any authorized intelligence, law enforcement, or other national security activities of the United States. The President may waive the application of sanctions under this section with respect to a person if the President— determines that the waiver is in the national interests of the United States; and submits to the appropriate congressional committees a report on the waiver and the reasons for the waiver. 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) to carry out this section. A person that violates, attempts to violate, conspires to violate, or causes violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of 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. The authority to impose sanctions under this section shall terminate on the date that is the earlier of the following: The date that is 5 years after the date of the enactment of this Act. The date on which the Russian oil price cap policy ceases to be in effect. Prior to the imposition of sanctions under this section, the Secretary of State shall consult with the appropriate counterparts of the Governments of Australia, G7 countries, and member countries of the European Union with respect to the imposition of sanctions. In this section, the term appropriate congressional committees means— the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives.

5. Definitions In this Act: The term foreign person means a person that is not a United States person. The term knowingly, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result. The term Russian oil price cap policy means the agreement between the United States, other G7 countries, the European Union, and Australia announced in December 2022 to ban a range of services related to the maritime transport of crude oil of Russian Federation origin unless purchasers buy the oil at or below $60 per barrel, and any subsequent revisions to that agreement. 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 any jurisdiction within the United States, including a foreign branch of such an entity; or any person located in the United States.