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Today, Congressman Bill Huizenga (R-MI), Ranking Member of the Investor Protection, Entrepreneurship, and Capital Markets Subcommittee announced the introduction of H.R. 6900, the Russian Sovereign Debt Prohibition Act of 2022.

“This legislation will continue to place tighter restrictions on Russian debt and more importantly, Russian banks,” said Congressman Bill Huizenga. “The Russian Sovereign Debt Prohibition Act of 2022 cuts off another avenue for Vladimir Putin to finance his invasion of Ukraine by preventing U.S. financial institutions from buying and servicing Russian debt. The United States must continue to lead efforts to sanction Russia and I am proud to add this legislation to the arsenal of financial tools intended to do just that.”

Background:

The Russian Sovereign Debt Prohibition Act prohibits U.S. financial institutions from secondary market dealings in Russian sovereign debt, regardless of the date a bond was issued.

Not later than 10 days following the date of the enactment of this Act, the Secretary of the Treasury shall prohibit U.S. financial institutions from participating in the secondary market for ruble or non-ruble denominated bonds issued by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, including any such bonds issued prior to the date of the enactment of this Act.

The term “U.S. financial institution” means any U.S. entity (including its foreign branches) that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, futures or options, or procuring purchasers and sellers thereof, as principal or agent. It includes depository institutions, banks, savings banks, money services businesses, operators of credit card systems, trust companies, insurance companies, securities brokers and dealers, futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, dealers in precious metals, stones, or jewels, and U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of any of the foregoing. This term includes those branches, offices, and agencies of foreign financial institutions that are located in the United States, but not such institutions’ foreign branches, offices, or agencies.