119-hr5632

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5632 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 5632

 To impose sanctions with respect to Azerbaijan upon renewed acts of 
 aggression, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 30, 2025

Mr. Issa (for himself and Mr. Bilirakis) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
 to the Committees on the Judiciary, and Financial Services, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
 committee concerned

_______________________________________________________________________

 A BILL

 To impose sanctions with respect to Azerbaijan upon renewed acts of 
 aggression, 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 Escalation and Advancing 
Caucasus Engagement Act'' or the ``PEACE Act''.

SEC. 2. STATEMENT OF POLICY.

 It is the policy of the United States to--

    (1) support the sovereignty, territorial integrity, and 
 independence of the Republic of Armenia and the Republic of 
 Azerbaijan;

    (2) support direct negotiations between the governments of 
 the Republic of Armenia and the Republic of Azerbaijan to 
 conclude a comprehensive, fair, and durable peace agreement 
 between the two countries;

    (3) utilize sanctions and related measures to deter the use 
 of force as an alternative to constructive negotiations; and

    (4) welcome and support initiatives of the Armenian 
 Government, led by Prime Minister Nikol Pashinyan, to secure a 
 long-standing peace agreement with the Republic of Azerbaijan, 
 expel malign Russian influence from the Republic of Armenia, 
 and strengthen ties between the Republic of Armenia and the 
 United States.

SEC. 3. DEFINITIONS.

 In this Act--

    (1) the term ``agricultural commodity'' has the meaning 
 given such term in 

section 102 of the Agricultural Trade Act of 
 1978 (7 U.S.C. 5602);

    (2) the term ``appropriate congressional committees'' 
 means--
        (A) the Committee on Foreign Affairs of the House 
 of Representatives; and
        (B) the Committee on Foreign Relations of the 
 Senate;

    (3) the term ``foreign person'' means any individual or 
 entity that is not a United States person;

    (4) the term ``good'' means any article, natural or man-
 made substance, material, supply, or manufactured product, 
 including inspection and test equipment and excluding technical 
 data;

    (5) the term ``hostile action'' means an act of military 
 aggression taken by a country that results in significant loss 
 of life, the disabling of military systems, materiel, or 
 personnel, the incapacitation of major utility or 
 transportation infrastructure, or a material breach of another 
 country's sovereignty, territorial integrity, or political 
 independence;

    (6) the term ``immediate family members'' has the meaning 
 given the term ``immediate relatives'' in 

section 201

    (b)

    (2)
        (A)
            (i) of the Immigration and Nationality Act (8 
 U.S.C. 1201

    (b)

    (2)
        (A)
            (i) );

    (7) 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;

    (8) the term ``medical device'' has the meaning given the 
 term ``device'' in 

section 201 of the Federal Food, Drug, and 
 Cosmetic Act (21 U.S.C. 321);

    (9) the term ``medicine'' has the meaning given the term 
 ``drug'' in 

section 201 of the Federal Food, Drug, and Cosmetic 
 Act (21 U.S.C. 321);

    (10) the term ``military aggression'' means the deliberate 
 initiation of armed force or other coercive military conduct by 
 a country, not undertaken in response to an armed attack, that 
 is reasonably expected to cause substantial harm to the 
 territorial integrity and sovereignty of another country; and

    (11) the term ``United States person'' means--
        (A) a United States citizen or an alien lawfully 
 admitted for permanent residence to the United States;
        (B) 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
            (C) any person within the United States.

SEC. 4. IMPOSITION OF SANCTIONS.

    (a) In General.--If the President determines that the Republic of 
Azerbaijan has engaged in hostile actions against the Republic of 
Armenia, the President--

    (1) shall immediately issue a certification to Congress to 
 that effect; and

    (2) upon issuance of such certification--
        (A) shall impose against each person described in 
 subsection

    (b) the sanctions described in subsection
            (c) ; and
        (B) shall impose sanctions against foreign 
 financial institutions as described in subsection
            (d) .

    (b) Persons Described.--A person described in this subsection is 
any person that--

    (1) is--
        (A) a senior Azerbaijani Government official 
 responsible for the policy and operations of branches 
 of the Azerbaijani Government directly involved in 
 hostile actions against the Republic of Armenia; or
        (B) an immediate family member of an individual 
 described in subparagraph
        (A) ;

    (2) is an Azerbaijani military unit or civilian agency that 
 has engaged in hostile actions against the Republic of Armenia; 
 or

    (3) is a foreign person that has substantially and 
 knowingly aided, abetted, taken part in, or otherwise 
 facilitated hostile actions taken by persons described in 
 paragraph

    (1) or

    (2) against the Republic of Armenia.
            (c) Sanctions on Persons Described.--The sanctions described in 
this subsection are the following:

    (1) Blocking of property.--The President shall exercise all 
 of the powers granted to the President under the International 
 Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the 
 extent necessary to block and prohibit all transactions in 
 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.

    (2) Ineligibility for visas, admission, or parole.--
        (A) Visas, admission, or parole.--An alien 
 described in subsection

    (a) is--
            (i) inadmissible to the United States;
            (ii) ineligible to receive a visa or other 
 documentation to enter the United States; and
            (iii) otherwise ineligible to be admitted 
 or paroled into the United States or to receive 
 any other benefit under the Immigration and 
 Nationality Act (8 U.S.C. 1101 et seq.).
        (B) Current visas revoked.--
            (i) In general.--An alien described in 
 subsection

    (a) is subject to revocation of any 
 visa or other entry documentation regardless of 
 when the visa or other entry documentation is 
 or was issued.
            (ii) Immediate effect.--A revocation under 
 clause
            (i) shall take effect immediately and 
 automatically cancel any other valid visa or 
 entry documentation that is in the alien's 
 possession.
            (d) Imposition of Sanctions With Respect to Foreign Financial 
Institutions.--

    (1) In general.--Except as specifically provided in this 
 subsection, beginning on the date that is 60 days after the 
 President's certification to Congress under this section, the 
 President shall prohibit the opening, and prohibit or impose 
 strict conditions on the maintaining, in the United States of a 
 correspondent account or a payable-through account by a foreign 
 financial institution that the President determines has 
 knowingly conducted or facilitated any significant financial 
 transaction with any Azerbaijani financial institution 
 designated by the Secretary of the Treasury to have facilitated 
 the trade of Azerbaijani petroleum or petroleum products.

    (2) Designation.--The Secretary of the Treasury shall--
        (A) publish a list of Azerbaijani financial 
 institutions determined to have facilitated the trade 
 of Azerbaijani petroleum or petroleum products; and
        (B) publish a list of designated foreign financial 
 institutions subject to prohibitions or conditions 
 pursuant to paragraph

    (1) .

    (3) Exception for sales of agricultural commodities, food, 
 medicine, and medical devices.--The President may not impose 
 sanctions under paragraph

    (1) with respect to any person for 
 conducting or facilitating a transaction for the sale of 
 agricultural commodities, food, medicine, or medical devices to 
 Azerbaijan.

    (4) Applicability of sanctions with respect to foreign 
 central banks.--Except as provided in paragraph

    (5) , sanctions 
 imposed under paragraph

    (1) shall apply with respect to a 
 central bank of a foreign country, only insofar as it engages 
 in a financial transaction for the sale or purchase of 
 petroleum or petroleum products to or from Azerbaijan conducted 
 or facilitated on or after that date that is 180 days after the 
 President's certification to Congress under this section.

    (5) Conditional exemption from sanctions with respect to 
 petroleum transactions.--Sanctions imposed pursuant to 
 paragraph

    (1) shall not apply with respect to a financial 
 transaction conducted or facilitated by a foreign financial 
 institution if--
        (A) the financial transaction is only for trade in 
 goods or services between the country with primary 
 jurisdiction over the foreign financial institution and 
 Azerbaijan; and
        (B) any funds owed to Azerbaijan as a result of 
 such trade are credited to an account located in the 
 country with primary jurisdiction over the foreign 
 financial institution.

    (e) Additional Sanctions.--If, at any time during the 
implementation of Joint Declaration signed on August 8, 2025, by 
Armenia and Azerbaijan, the Secretary of State determines that a person 
has knowingly attempted to delay, frustrate, or thwart the successful 
conclusion of a peace agreement consistent with the principles of such 
Joint Declaration, the President may impose one or more sanctions 
described in subsection
            (c) of this section against that person.

SEC. 5. FURTHER EXCEPTIONS TO SANCTIONS AND WAIVER.

    (a) Exceptions.--The sanctions described in 

section 4 shall not 
apply to the following:

    (1) Any activity subject to the reporting requirements 
 under title V of the National Security Act of 1947 (50 U.S.C. 
 3091 et seq.), or to any authorized intelligence activities of 
 the United States.

    (2) The admission of an alien to the United States if such 
 admission is necessary to comply with United States obligations 
 under the Agreement between the United Nations and the United 
 States of America regarding the Headquarters of the United 
 Nations, signed at Lake Success June 26, 1947, and entered into 
 force November 21, 1947, or under the Convention on Consular 
 Relations, done at Vienna April 24, 1963, and entered into 
 force March 19, 1967, or other applicable international 
 obligations of the United States.

    (3) The conduct or facilitation of a transaction for the 
 sale of agricultural commodities, food, medicine, or medical 
 devices to the Republic of Azerbaijan or for the provision of 
 humanitarian assistance to the people of the Republic of 
 Azerbaijan, including engaging in a financial transaction 
 relating to humanitarian assistance or for humanitarian 
 purposes or transporting goods or services that are necessary 
 to carry out operations relating to humanitarian assistance or 
 humanitarian purposes.

    (4) The requirement to block and prohibit all transactions 
 in all property and interests in property under this Act shall 
 not include the authority or a requirement to impose sanctions 
 on the importation of goods.

    (b) Waiver.--The President may waive application of sanctions 
described in 

section 4 with respect to a person if the President--

    (1) determines that the waiver is in the national interests 
 of the United States; and

    (2) submits to the appropriate congressional committees a 
 report on the waiver and the reasons for the waiver.

SEC. 6. TERMINATION.

    (a) In General.--The President may terminate the application of 
such sanctions with respect to--

    (1) any person that--
        (A) has taken genuine and verifiable steps to end 
 their participation in or facilitation of hostile 
 actions against the Republic of Armenia for a period of 
 not less than one year after the application of 
 sanctions under 

section 4; and
        (B) the President determines does not pose a 
 substantial risk of re-engaging in hostile actions 
 against the Republic of Armenia for a period of not 
 less than one year after the application of sanctions 
 under 

section 4; and

    (2) any foreign financial institution upon the President's 
 certification that the Republic of Azerbaijan has ceased all 
 hostile actions against the Republic of Armenia for a period of 
 not less than one year after the application of sanctions under 
 

section 4.

    (b) Release of Credited Funds.--

    (1) In general.--Upon a Presidential certification under 
 subsection

    (a)

    (2) with respect to a foreign financial 
 institution, the President may authorize the release of any 
 funds to Azerbaijan which were owed but had been instead 
 credited to an account pursuant to 

section 4
            (d) (5) .

    (2) Report.--Not later than 15 days after the date on which 
 funds have been released to Azerbaijan under this subsection, 
 the President shall transmit to appropriate congressional 
 committees a report on the release of such funds.
            (c) Report.--Not later than 15 days prior to the termination of 
sanctions with respect to a person under subsection

    (a) , the President 
shall submit a report to the appropriate congressional committees that 
includes--

    (1) the name and nationality of the person against whom 
 sanctions are being terminated;

    (2) the hostile actions previously committed or facilitated 
 by such person that led to the imposition of sanctions against 
 the person;

    (3) the genuine and verifiable steps taken by the person to 
 end the person's participation in or facilitation of hostile 
 actions against the Republic of Armenia; and

    (4) the President's determination that the person does not 
 pose a substantial risk of re-engaging in hostile actions 
 against the Republic of Armenia.

SEC. 7. REPORTING REQUIREMENTS.

    (a) Presidential Reporting.--

    (1) In general.--Not later than 30 days after the date of 
 the enactment of this Act, and every 90 days thereafter, the 
 President shall submit a report to the appropriate 
 congressional committees that contains a determination as to 
 whether the Republic of Azerbaijan has engaged in hostile 
 actions against the sovereign territory of Armenia.

    (2) Form.--The report submitted pursuant to paragraph

    (1) shall be submitted in unclassified form but may contain a 
 classified annex.

    (b) Annual Review.--Not later than one year after the imposition of 
sanctions pursuant to this Act, and no less frequently than annually 
thereafter, the President shall submit a report to the appropriate 
congressional committees describing the status of any sanctions imposed 
pursuant to 

section 4, including an assessment of the effectiveness of 
the sanctions.

SEC. 8. SUNSET.

 The provisions of this Act shall expire on the date that is 7 years 
after the date of the enactment of this Act.

SEC. 9. SEVERABILITY.

 If any provision of this Act, or the application thereof, is held 
invalid, the remainder of this Act and the application of such 
provision to other persons or circumstances shall not be affected 
thereby.
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