Discussion drafts of US Russia DAKSA and DETER Bills

A discussion draft bill has been debated in a House of Representatives’ Financial Services subcommittee hearing. It takes elements from the DASKA (see post) and DETER (see post) bills. See memorandum and webcast.

The proposed sanctions include:

  • A prohibition on US persons dealing in new sovereign debt of the Russian Federation; and
  • Mandatory contingency sanctions in the event of future Russian attacks on US elections; and
  • A prohibition on investment in the energy sector if interference is determined; and
  • New sanctions on Russian state-owned financial institutions if interference is determined.

Other requirements:

  • The Treasury would report on any interference in an election 90 days after the event; and
  • The Treasury would “update the report required under section 241 of CAATSA (“Oligarch Report”) annually”; and
  • And “prohibit the delisting of certain designated Russian companies unless the companies’ aggregate ownership by a sanctioned individual and immediate family members is less than 25%“. This differs from the present 50% ownership rule under E.O. 13662; it would be more difficult for entities to be delisted and would encourage sanctioned individuals to release ownership of their companies.

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About Maya Lester QC

Maya Lester QC

Maya Lester QC is a senior barrister (Queen’s Counsel) at Brick Court Chambers with a wide-ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. The legal directories say she is the...

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