A Senate bill with bipartisan support could apply secondary sanctions on anyone transacting or transporting gold from Russia’s central bank holdings or selling gold in Russia. The Stop Russian Government and Oligarchs from Limiting Democracy Act, introduced this week, would look to close a “loophole” in U.S. sanctions that allows Russian oligarchs to launder money through gold, the sponsoring senators said March 8. The bill would authorize secondary sanctions to “deter the purchase of Russian gold and close this loophole that allows the Russian Federation to soften the financial impact of sanctions.”
The National Electrical Manufacturers Association is asking House and Senate leadership to "expeditiously advance" a compromise China package by resolving differences between the U.S. Innovation and Competition Act (USICA) and the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (America Competes) Act.
Two House Republicans again reminded the State Department that it must submit to Congress any new deal reached with Iran over its nuclear commitments, saying they are concerned the Biden administration may be trying to avoid this requirement (see 2106150029). House Minority Leader Kevin McCarthy, R-Calif., and Rep. Michael McCaul, R-Texas, said they fear the administration is “working through Russian intermediaries to finalize an Iran nuclear deal without submitting it for Congressional consideration.”
The Biden administration should close a sanctions “loophole” that allows Russian nationals to continue making “significant” deposits at U.S. banks and purchases of U.S. securities, Senate Foreign Relations Committee Chair Sen. Bob Menendez, D-N.J., said. He said the move would more closely align U.S. financial restrictions with those imposed by European allies and help cut off all access to the U.S. financial system for Russian elites who are “currently still able to keep sizable assets safe in the U.S. market.”
Democrats who lead the House Select Subcommittee on the Coronavirus Crisis are asking major carriers for extensive documents and proprietary information, saying they have the authority to investigate price gouging and profiteering connected to the pandemic.
China Tech Threat, a consultant-owned organization that advocates for stronger export controls, urged the Senate to speed up the confirmation process for Alan Estevez to lead the Bureau of Industry and Security. The group said Estevez will bring “extensive national security background to the role at a critical time as China’s ambitions to dominate emerging technology markets pose a serious threat to U.S. economic and national security interests.” The vacancy for BIS undersecretary leaves a “glaring hole in our export control regime,” the organization said, noting that it has been more than five years since the agency last had a confirmed undersecretary.
The U.S. should begin seizing the financial and physical assets of sanctioned Russian people and entities instead of just freezing them, said Sen. Rob Portman, R-Ohio. He said other countries have started seizing Russian vessels, such as France, which recently seized a car cargo ship in the English Channel with ties to the son of a former Russian spy chief, according to a Reuters report.
The Congressional Research Service recently issued two new reports detailing the U.S.’s and its allies’ response to Russia’s invasion of Ukraine and an overview of recent sanctions and export controls. The CRS said Western economies, including companies, are “likely” to be affected by the new trade measures and “many transactions will likely be disrupted,” especially in the energy sector.
Congress should make sure the Treasury Department has enough funding to fully target Russian oligarchs and sanctioned Russian companies Sen. Ron Wyden, D-Ore., said March 1. Wyden, chair of the Senate Finance Committee, applauded Treasury’s Russia sanctions work so far but said Congress may need to provide the agency with more resources.
The Ocean Shipping Reform Act, which has both passed the House and was included in the House version of a China package, is scheduled for a hearing in the Senate Commerce Committee next month. The hearing will be March 3.