U.S. Rep. Bill Huizenga (R-MI), Ranking Member of the Investor Protection, Entrepreneurship and Capital Markets Subcommittee, said he had introduced legislation that would stop American financial institutions from buying or servicing Russian debt.
The legislation, H.R. 6900, the Russian Sovereign Debt Prohibition Act of 2022, prohibits any U.S. financial institution from participating in secondary market dealings In Russian sovereign debt, regardless of the date the bond was issued.
“This legislation will continue to place tighter restrictions on Russian debt and, more importantly, Russian banks,” Huizenga said. “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.”
If passed, the legislation would take effect no later than 10 days after the date of enactment and would require the Secretary of the Treasury to 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.
The legislation would apply to “any U.S. entity (including its foreign branches) 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, as principal or agent,” including banks, savings banks, money services businesses, operators of credit card systems, trust companies, insurance companies, futures and options brokers and dealers, dealers in precious metals, stones or jewels, and U.S. holding companies, among others.