Bills
| 3.23.22

Should Russian Companies be Sanctioned as Punishment for Russia’s Occupation of Ukraine? (H.R. 6423)

Do you support or oppose this bill?

What is H.R. 6423?

(Updated October 22, 2019)

This bill would sanction Russian institutions with ties to the Kremlin in response to Russia’s occupation of Ukraine. If the president finds that Russia is violating the Minsk Agreement — which was supposed to have led to a ceasefire in the Donbass region of Ukraine — then this bill would compel him to impose sanctions against at least three of the seven financial institutions named in this bill.

The following are named as targets of possible sanctions if the president finds continued violations of the Minsk Agreement:

  • Vnesheconombank

  • Sberbank

  • VTB Bank

  • Gazprombank

  • Bank of Moscow

  • Rosselkhozbank

  • Promsvyazbank.

Argument in favor

The Russian occupation of Ukraine, and the ongoing violence it caused, has been widely condemned by the international community. Since political pressure hasn't worked, putting economic pressure on the Kremlin by sanctioning Russian enterprises is a reasonable next step.

Argument opposed

Putin has made concrete proposals to President Trump on solutions to this problem, and this bill would upend any progress that’s been made towards a diplomatic solution. Additionally, these sanctions might be viewed as sidestepping ongoing European efforts, and could be received poorly by U.S. allies in the region.

Impact

Ukraine; Russia; Russian institutions; the President.

Cost of H.R. 6423

A CBO cost estimate for this bill is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Steve Cohen (D-TN) introduced this bill to impose sanctions on Russian financial institutions in response to Russia’s continued occupation of Ukraine after the February 2014 invasion and annexation of Crimea:

“More than four years after the invasion of its sovereign neighbor, Ukraine, Russia continues to flout its international obligations and world opinion, and needs to see that the United States believes there should be a painful consequence. This bill would hit Russian President Vladimir Putin where it hurts – in his and his cronies’ banking relationships.”

There is one cosponsor of this bill, Rep. Ted Poe (R-TX).


Of Note: Russia’s occupation of Ukraine dates back to 2014, when the Kremlin backed separatists forces in Ukraine’s Donetsk and Luhansk provinces, known as the Donbass region. The Ukrainian government deems Russia an “aggressor state” and calls the parts of the Donbass under Russian control as under “temporary occupation.”

About 10,000 people, including at least 2,000 civilians, have been killed since the conflict began. Another 1.7 million have been displaced from their homes.

2015’s Minsk agreements brokered by Germany and France, which were supposed to have alleviated the war in the Donbass, have slowed the conflict — but sporadic fighting continues.

This bill is part of a bipartisan package of legislation, H.R. 6437, the Secure America from Russian Interference Act of 2018, that addresses concerns related to keeping the United States safe from Russian aggression and interference. It has four basic objectives:

  1. Exposing Russian misdeeds and holding President Vladimir Putin accountable;

  2. Strengthening U.S. government security and election infrastructure to defend against foreign interference;

  3. Bolstering U.S. alliances, especially with NATO partners, to combat the Russian threat; and

  4. Seeking constructive dialogue with the Russian people.

In addition to this bill, the following are included in the package:


Media:

Summary by Lorelei Yang

(Photo Credit: iStock / MarkRubens)