Washington, D.C. – House Foreign Affairs Committee Chairman Ed Royce (R-CA) today wrote Treasury Secretary Steven Mnuchin to request that the administration determine whether individuals included in its Report on Oligarchs and Parastatal Entities of the Russian Federation – transmitted to Congress yesterday pursuant to the Countering America’s Adversaries Through Sanctions Act –  should be designated for sanctions under the Global Magnitsky Act and the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014. 

In addition to the letter, included below, Royce issued the following statement:

“Yesterday marked important progress in implementing our bipartisan legislation to hold Russia accountable for its long record of aggressive acts. Powerful new sanctions on the Russian intelligence and defense sectors are now live. And the good news is these measures are already succeeding in squashing business with bad actors. If and when future violations occur, I expect the administration to act swiftly.   

“Additionally, pursuant to the law, Congress has received substantive reports shedding new light on Russian oligarchs and debt. We’ve always known that corruption is key to Vladimir Putin’s continued power and the funding for his dangerous and destabilizing foreign policies. Upon review of this report on oligarchs, I am requesting that the administration determine whether additional penalties should be levied against any of those individuals listed. I look forward to continuing to work with the administration to target corruption that hurts the Russian people and threatens vital U.S. interests.”

A link to the letter is HERE. Full text follows.

January 30, 2018

The Honorable Steven T. Mnuchin
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

Dear Mr. Secretary:   

Yesterday, the Treasury Department transmitted to Congress the Report on Oligarchs and Parastatal Entities of the Russian Federation required by Section 241 of the Countering America’s Adversaries Through Sanctions Act. Individuals included on this list are not automatically subject to U.S. sanctions, although a number are already. However, the report does raise the obvious question of whether others listed should be sanctioned under existing sanctions authorities—such as the Global Magnitsky Human Rights Accountability Act.

Congress passed the Global Magnitsky Act in 2016 to target human rights abusers and corrupt actors globally, including in Russia. Building on the Sergei Magnitsky Rule of Law Accountability Act of 2012, the act authorizes the President to impose sanctions on government officials or their associates who are responsible for, or complicit in, ordering, controlling, or otherwise directing acts of significant corruption. This includes the expropriation of private or public assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the proceeds of corruption abroad. It also targets any individual or entity who assists, sponsors, or provides financial, material, or technological support for such activities.

Similarly, the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014, as amended, imposes sanctions on individuals or entities responsible for ordering, controlling, or otherwise directing, acts of significant corruption in the Russian Federation or elsewhere, including the expropriation of private or public assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the proceeds of corruption abroad. It also targets any individual or entity who assists, sponsors, or provides financial, material, or technological support for such activities.

As you know, President Vladimir Putin relies on corruption to retain power, foster instability in the Middle East, and attempt to destabilize Western democracies—including the United States. The report required by Section 241 of the Countering America’s Adversaries Through Sanctions Act shines a light on many who have benefited from this corrupt system. I ask that the Treasury Department review the individuals and entities in this report and determine whether they should be designated under existing U.S. sanctions authorities, including those outlined above.

Thank you for your attention to this matter. I look forward to continuing to work with you to target corruption in Russia and around the world.

Sincerely,

EDWARD R. ROYCE
Chairman