119-hr4346

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4346 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 277
119th CONGRESS
 1st Session
 H. R. 4346

 [Report No. 119-324]

 To secure a peaceful resolution to the Russia-Ukraine conflict by 
 requiring the Secretary of the Treasury to prohibit, or impose strict 
 conditions on, the opening or maintaining in the United States of a 
 correspondent account or a payable-through account by certain foreign 
 financial institutions, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 10, 2025

 Mr. Nunn of Iowa (for himself and Mr. Gottheimer) introduced the 
 following bill; which was referred to the Committee on Financial 
 Services

 October 3, 2025

 Additional sponsors: Mr. Barrett, Mr. Conaway, and Mr. Suozzi

 October 3, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
 10, 2025]

_______________________________________________________________________

 A BILL

 To secure a peaceful resolution to the Russia-Ukraine conflict by 
 requiring the Secretary of the Treasury to prohibit, or impose strict 
 conditions on, the opening or maintaining in the United States of a 
 correspondent account or a payable-through account by certain foreign 
 financial institutions, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Preventing the Escalation of Armed 
Conflict in Europe Act of 2025'' or the ``PEACE Act of 2025''.

SEC. 2. FINDINGS.

 Congress finds the following:

    (1) During the night of March 6-7, 2025, only one week 
 after the President called for peace between Russia and 
 Ukraine, the Russian military bombarded Ukrainian energy 
 infrastructure and civilian residences.

    (2) DTEK, a Ukrainian gas producer, noted that the assault 
 represented the sixth Russian attack on its Odesa facilities in 
 just the preceding two and a half weeks.

    (3) On March 7, 2025, the President published the following 
 statement: ``Based on the fact that Russia is absolutely 
 `pounding' Ukraine on the battlefield right now, I am strongly 
 considering large scale Banking Sanctions, Sanctions, and 
 Tariffs on Russia until a Cease Fire and FINAL SETTLEMENT 
 AGREEMENT ON PEACE IS REACHED. To Russia and Ukraine, get to 
 the table right now, before it is too late.''.

    (4) Despite the President's calls for a peace settlement, 
 Russia has continued to assault Ukraine, including an April 4 
 missile attack on Kryvyi Rih that killed 20 people and an April 
 13 strike on Sumy resulting in 35 deaths.

    (5) On May 25, 2025, Russia launched its largest aerial 
 attack of the war, deploying hundreds of drones and ballistic 
 missiles throughout Ukrainian territory.

    (6) On May 27, 2025, the President posted on social media 
 with reference to Russian leader Vladimir Putin: ``He's playing 
 with fire!''.

    (7) Hours after a July 3, 2025 call between the President 
 and Putin, Russia carried out its largest-yet aerial assault of 
 the war against Kyiv. Less than one week later, following 
 remarks by the President at a Cabinet meeting criticizing 
 Putin, Russia launched an even more expansive drone strike 
 against Ukrainian targets.

    (8) On July 14, 2025, the President reiterated his 
 displeasure with Putin and Moscow's obstruction of the peace 
 process. ``I speak to [Putin] a lot about getting this thing 
 done,'' said the President while announcing new weapons 
 deliveries for Ukraine. ``And I always hang up and say, `Well, 
 that was a nice phone call'. And then missiles are launched 
 into Kyiv or some other city.'' The President continued, 
 ``Ultimately talk doesn't talk. It's got to be action. It's got 
 to be results.''.

SEC. 3. SANCTIONS WITH RESPECT TO THE RUSSIAN FEDERATION.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall prescribe 
regulations to prohibit, or impose strict conditions on, the opening or 
maintaining in the United States of a correspondent account or a 
payable-through account by a foreign financial institution that 
knowingly provides significant financial services to--

    (1) any foreign person designated for the imposition of 
 sanctions with respect to the Russian Federation under--
        (A) Executive Order 14024; or
        (B) title II of the Countering America's 
 Adversaries through Sanctions Act (Public Law 115-44) 
 or an amendment made by that title;

    (2) a foreign financial institution subject to the 
 prohibitions of Directive 2 under Executive Order 14024;

    (3) an entity listed in Annex 1 of Directive 3 under 
 Executive Order 14024; or

    (4) any foreign person that the Secretary finds operates in 
 the energy sector of the Russian Federation.

    (b) Penalties.--

    (1) Civil penalty.--A person who violates, attempts to 
 violate, conspires to violate, or causes a violation of 
 regulations prescribed under this subsection shall be subject 
 to a civil penalty in an amount not to exceed the greater of--
        (A) $377,700; or
        (B) an amount that is twice the amount of the 
 transaction that is the basis of the violation with 
 respect to which the penalty is imposed.

    (2) Criminal penalty.--A person who willfully commits, 
 willfully attempts to commit, or willfully conspires to commit, 
 or aids or abets in the commission of, a violation of 
 regulations prescribed under this subsection shall, upon 
 conviction, be fined not more than $1,000,000, or if a natural 
 person, may be imprisoned for not more than 20 years, or both.

SEC. 4. DETERMINATION REQUIRED.

 Not later than 90 days after the date of enactment of this Act, the 
Secretary of the Treasury shall submit a report to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate determining whether 
the following are foreign persons described under 

section 3

    (a)

    (4) :

    (1) Gazprom.

    (2) Rosneft.

    (3) Lukoil.

SEC. 5. WAIVER.

 With respect to a foreign financial institution, the President may 
waive the requirements of 

section 3

    (a) for not more than 180 days at a 
time upon reporting to Congress that--

    (1) the waiver advances the objective of resolving the 
 national emergency described in the Executive Order listed 
 under 

section 3

    (a)

    (1) ; or

    (2) the waiver is important to the national interest of the 
 United States, provided that the President includes a detailed 
 explanation of the reasons therefor.

SEC. 6. TRANSFER OF CERTAIN RUSSIAN ASSETS HELD BY UNITED STATES 
 FINANCIAL INSTITUTIONS.

    (a) Transfer From United States Financial Institutions.--

    (1) In general.--Not later than 90 days following the date 
 of the enactment of this Act, the Secretary of the Treasury 
 shall--
        (A) seize, confiscate, transfer, or vest any 
 covered Russian resources, in whole or in part, and 
 including any interest or interests in such assets, 
 held by a United States financial institution; and
        (B) deposit the resulting funds into the Ukraine 
 Support Fund established under subsection 104
            (d) of the 
 REPO for Ukrainians Act (22 U.S.C. 9521 note), which 
 may be used for the purposes specified in 

section 104

    (f) of such Act or for the purchase of defense 
 articles for the Government of Ukraine.

    (2) Authorities.--The Secretary of the Treasury shall have 
 the same authority under this subsection with respect to 
 covered Russian resources as are provided to the President 
 under 

section 104

    (b) of the REPO for Ukrainians Act (22 U.S.C. 
 9521 note) with respect to Russian aggressor state sovereign 
 assets.

    (b) Waiver.--The President may waive the requirements of subsection

    (a) for up to 180 days at a time, for a cumulative period not to exceed 
1 year, upon reporting to Congress in writing that--

    (1) the Government of the Russian Federation is taking 
 meaningful steps to cease its destabilizing activities with 
 respect to the sovereignty and territorial integrity of 
 Ukraine; or

    (2) the waiver is important to the national interest of the 
 United States.
            (c) === Definitions. ===
-In this section:

    (1) Covered russian resources.--The term ``covered Russian 
 resources'' means funds and other property of the Central Bank 
 of the Russian Federation, the Russian National Wealth Fund, or 
 the Ministry of Finance of the Russian Federation that--
        (A) are included in a report pursuant to--
            (i) directive 4 of Executive Order 14024; 
 or
            (ii) section 104

    (a) of the REPO for 
 Ukrainians Act (22 U.S.C. 9521 note); and
        (B) are located in the United States.

    (2) United states financial institution.--The term ``United 
 States financial institution'' means--
        (A) a financial institution specified in 
 subparagraph
        (A) ,
        (B) ,
            (C) ,
            (D) ,
        (E) ,
        (F) ,
        (G) ,
        (H) ,
            (I) ,
        (J) ,
            (M) , or

    (AA) section 5312

    (a)

    (2) of title 31, 
 United States Code, as amended by the William M.

    (Mac) Thornberry National Defense Authorization Act for 
 Fiscal Year 2021; and
        (B) such other persons or entities as the Secretary 
 of the Treasury determines appropriate.

SEC. 7. TERMINATION.

 This Act shall have no force or effect on the earlier of--

    (1) 30 days after the date that the President reports to 
 Congress that the Russian Federation has ceased destabilizing 
 activities with respect to the sovereignty and territorial 
 integrity of Ukraine; or

    (2) the date that is 5 years after the date of the 
 enactment of this Act.
 Union Calendar No. 277

119th CONGRESS

 1st Session

 H. R. 4346

 [Report No. 119-324]

_______________________________________________________________________

 A BILL

 To secure a peaceful resolution to the Russia-Ukraine conflict by 
 requiring the Secretary of the Treasury to prohibit, or impose strict 
 conditions on, the opening or maintaining in the United States of a 
 correspondent account or a payable-through account by certain foreign 
 financial institutions, and for other purposes.

_______________________________________________________________________

 October 3, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed