Should Congress Reverse Sanctions Relief for Companies Related to a Russian Oligarch? (S. Joint Res. 2)

What is S. Joint Res. 2?

(Updated April 7, 2019)

This bill would disapprove of the Treasury Dept.’s December 19, 2018, decision to relax sanctions on three Russian companies connected to Russian oligarch Oleg Deripaska: EN+ Plc, JSC EuroSibEnergo, and United Co. Rusal Plc. Deripaska is allegedly under investigtion by Special Counsel Robert Mueller, and the Treasury Dept.’s decision wouldn’t affect the existing sanctions against Deripaska as an individual..

Under the Countering America’s Adversaries Through Sanctions Act of 2017, Congress is able to consider a privileged resolution disapproving of sanctions relief announced by the administration. Given when the Treasury Dept. announced the sanctions relief, Congress has until January 17, 2019, to pass the resolution.

As a joint resolution, this bill would need to pass both chambers of Congress and be signed into law by the president. It could also become law after a presidential veto if both chambers of Congress approve the resolution by a two-thirds margin.

Argument in favor

This bill would wisely reverse the Trump administration’s flawed decision to offer sanctions relief to three companies connected to a Russian oligarch named Oleg Deripaska, who is linked to Paul Manafort and is under investigation by Special Counsel Robert Mueller.

Argument opposed

The Treasury Department’s decision to lift sanctions on the three companies connected to Oleg Deripaska didn’t change the fact that he is personally sanctioned and will continue to be. This bill is an attempt to show non-existent impropriety.

Impact

EN+ Plc, JSC EuroSibEnergo, and United Co. Rusal Plc; and the Treasury Department.

Cost of S. Joint Res. 2

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Senate Minority Leader Chuck Schumer (D-NY) introduced this bill to reverse the Treasury Dept.’s decision to offer sanctions relief to three Russian companies connected to oligarch Oleg Deripaska:

“After consultation with relevant committee ranking members and my colleagues, I have concluded that the Treasury Department’s proposal is flawed and fails to sufficiently limit Oleg Deripaska’s control and influence of these companies, and the Senate should move to block this misguided effort by the Trump administration and keep these sanctions in place. Furthermore, given Mr. Deripaska’s potential involvement with Paul Manafort and the fact that the Special Counsel’s Russia investigation has not yet concluded its work, it’s all the more reason these sanctions must remain in place. I urge all of Senate colleagues to vote to reverse the Administration’s wrongheaded decision to relax these much-needed sanctions.”

Senate Republican leaders haven’t taken a position this bill, and GOP lawmakers will be briefed by Treasury Secretary Steve Mnuchin on January 15th — the day the Senate is set to vote on the bill. Sen. Jim Risch (R-ID), who chairs the foreign relations committee, said he expects to vote against the Democrats’ bill and told Bloomberg:

“The Treasury Department has gone through this with a fine-tooth comb and determined that these companies — it’s not Deripaska, it’s the companies — that the companies fall out of the sanctions.”

Media:

• Senate Minority Leader Chuck Schumer (D-NY) Press Release
  
• Bloomberg