House Bill Would Sanction Foreign Banks That Support Russian Energy Sector
Reps. Zach Nunn, R-Iowa, and Josh Gottheimer, D-N.J., introduced a bill July 7 that would give the Treasury Department expanded authority to prohibit U.S. bank access for foreign financial institutions that serve Russia’s energy sector or sanctioned Russian entities.
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While the Treasury Department already has tools to sanction such foreign banks, the Preventing the Escalation of Armed Conflict in Europe (PEACE) Act, or Peace Act, is intended to codify a clear framework for taking such action. It would require the Treasury Department to develop regulations to implement the proposed law.
The lawmakers said their legislation is needed to reduce support for Russia’s war against Ukraine. The bill was referred to the House Foreign Affairs and Financial Services committees. It “is expected to advance in the coming weeks” at the Financial Services Committee, a Nunn press release says.
Meanwhile, another Russian sanctions bill has increased its support to 84 Senate co-sponsors and 81 House co-sponsors. The Sanctioning Russia Act, introduced in April by Sen. Lindsey Graham, R-S.C., and Rep. Brian Fitzpatrick, R-Pa., would impose a wide range of sanctions on Russia and its supporters if Moscow refuses to reach a peace deal with Ukraine (see 2504020003 and 2506170076).