114º CONGRESS OF THE UNITED STATES 2D SESSION S. ll

114TH CONGRESS 2D SESSION S. ll

To provide humanitarian assistance for the Venezuelan people, to defend democratic governance and combat widespread public corruption in Venezuela, and for other purposes.

IN THE SENATE OF THE UNITED STATES llllllllll Mr. CARDIN (for himself, Mr. RUBIO, Mr. DURBIN, Mr. CORNYN, Mr. MENENDEZ, Mr. MCCAIN, Mr. NELSON, Mr. KAINE, and Mr. VAN HOLLEN) introduced the following bill; which was read twice and referred to the Committee on llllllllll A BILL To provide humanitarian assistance for the Venezuelan people, to defend democratic governance and combat widespread public corruption in Venezuela, and for other purposes.

1 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, 3 SECTION

1. SHORT TITLE; TABLE OF CONTENTS. 4 (a) SHORT TITLE.—This Act may be cited as the 5 ‘‘Venezuela Humanitarian Assistance and Defense of 6 Democratic Governance Act of 2017’’. 2 MDM17520 S.L.C.

1 (b) TABLE OF CONTENTS.—The table of contents for 2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Sense of Congress.

Sec. 4. Humanitarian assistance for the people of Venezuela.

Sec. 5. Requirement for strategy to coordinate international humanitarian assistance.

Sec. 6. Support for Organization of American States Inter-American Democratic Charter.

Sec. 7. Support for international election observation missions and democratic civil society in Venezuela.

Sec. 8. Support for Caribbean countries.

Sec. 9. Concerns and report on the involvement of Venezuelan officials in corruption and illicit narcotics trafficking.

Sec. 10. Sanctions on persons responsible for public corruption and undermining democratic governance in Venezuela.

Sec. 11. Concerns over PDVSA transactions with Rosneft. 3 SEC. 2.

FINDINGS. 4 Congress makes the following findings:

5 (1) The deterioration of democratic governance

6 and the economic crisis in Venezuela have led to an

7 unprecedented humanitarian situation in which peo-

8 ple are suffering from severe shortages of essential

9 medicines and basic food products.

10 (2) According to the World Health Organization, Venezuela had a shortage of necessary medica- 12 tions and medical supplies of— 13 (A) 55 percent in 2014; 14 (B) 67 percent in 2015; and 15 (C) 75 percent in 2016. 16 (3) According to a Human Rights Watch 2016 17 report, it is increasingly difficult for many Ven- 18 ezuelans, particularly those in lower or middle-in- 3 MDM17520 S.L.C. 1 come families, to obtain adequate nutrition and 2 there are reports of symptoms of malnutrition, particularly in children. 4 (4) Despite massive shortages of basic food- 5 stuffs and essential medicines, President of Ven- 6 ezuela Nicolas Maduro has rejected repeated requests from the Venezuelan National Assembly and 8 civil society organizations to bring humanitarian aid 9 into the country. 10 (5) The International Monetary Fund has esti- 11 mated that in Venezuela in 2016 the country’s gross 12 domestic product contracted by 12 percent and infla- 13 tion rate reached 720 percent, and has stated that 14 Venezuela had the worst growth and inflation per- 15 formance in the world. 16 (6) The International Monetary Fund has not 17 convened an Article IV Executive Board consultation 18 for Venezuela since September 13, 2004, which 19 greatly limits the extent of information available to 20 the international community about the severity of 21 the Venezuelan economic crisis. 22 (7) Venezuela’s political, economic, and human- 23 itarian crisis is fueling social tensions that are re- 24 sulting in growing incidents of public unrest, looting, 4 MDM17520 S.L.C. 1 violence among citizens, and an exodus of Ven- 2 ezuelans abroad. 3 (8) These social distortions are taking place 4 amidst an alarming climate of criminal violence. Ac- 5 cording to the United Nations Office on Drug and 6 Crime, Caracas, Venezuela had the highest per cap- 7 ita homicide rate of any capital city in the world in 8 2015 at 120 murders per 100,000 citizens. 9 (9) In 2016, 18,155 Venezuelans submitted 10 asylum requests in the United States, which was 11 greatest number of requests by any nationality, ac- 12 cording to U.S. Citizenship and Immigration Serv- 13 ices. 14 (10) International and domestic human rights 15 groups, such as Foro Penal Venezolano, recognize 16 more than 108 political prisoners in Venezuela, in- 17 cluding opposition leader and former Chacao mayor 18 Leopoldo Lo´pez, Judge Marı´a Lourdes Afiuni, Cara- 19 cas Mayor Antonio Jose´ Ledezma Dı´az, National 20 Assembly Deputy Gilber Caro, and former San Cris- 21 tobal mayor Daniel Ceballos. 22 (11) According to media accounts, 29 people 23 lost their lives as the result of public demonstrations 24 and protests in Venezuela in April 2017. 5 MDM17520 S.L.C. 1 SEC. 3. SENSE OF CONGRESS. 2 It is the sense of Congress that— 3 (1) Venezuelan President Nicola´s Maduro 4 should permit the delivery of international humani- 5 tarian assistance to address the widespread and 6 deeply concerning shortages of essential medicines 7 and basic food products faced by the people of Ven- 8 ezuela; 9 (2) it is in the best interest of the Venezuelan 10 people for the Government of Venezuela to engage 11 with multilateral and regional economic institutions 12 to ameliorate the effects of the country’s ongoing 13 economic, social, and humanitarian crisis; 14 (3) Venezuelan President Nicola´s Maduro 15 should immediately release all political prisoners and 16 respect internationally-recognized human rights in 17 order to facilitate the conditions for political negotia- 18 tions and dialogue in Venezuela; 19 (4) Venezuelan President Nicola´s Maduro and 20 the Supreme Tribunal of Justice of Venezuela 21 should take steps to reinstate the full powers and 22 authorities of the National Assembly of Venezuela in 23 accordance with the Constitution of the Bolivarian 24 Republic of Venezuela; 25 (5) Venezuela’s National Electoral Council 26 should establish a specific timeline to hold national, 6 MDM17520 S.L.C. 1 regional, and municipal elections in accordance with 2 the Constitution of the Bolivarian Republic of Ven- 3 ezuela; and 4 (6) the United States should support meaning- 5 ful efforts towards political negotiations and dia- 6 logue through which all parties uphold their commit- 7 ments and agree to specific deadlines to restore re- 8 spect for Venezuela’s constitutional mechanisms and 9 resolve the country’s political, economic, and human- 10 itarian crisis. 11 SEC. 4. HUMANITARIAN ASSISTANCE FOR THE PEOPLE OF 12 VENEZUELA. 13 (a) IN GENERAL.—The Secretary of State, in coordi- 14 nation with the Administrator of the United States Agen- 15 cy for International Development, subject to the avail- 16 ability of appropriations, shall work through nongovern- 17 mental organizations to provide— 18 (1) public health commodities to Venezuelan 19 health facilities and services, including medicines on 20 the World Health Organization’s List of Essential 21 Medicines and basic medical supplies and equipment; 22 (2) the basic food commodities and nutritional 23 supplements needed to address growing malnutrition 24 and improve food security for the people of Ven- 7 MDM17520 S.L.C. 1 ezuela, with a specific emphasis on the most vulner- 2 able populations; 3 (3) technical assistance to ensure health and 4 food commodities are appropriately selected, pro- 5 cured, and distributed; and 6 (4) improved transparency and accountability in 7 institutions of the Government of Venezuela, includ- 8 ing the publication of official data on public health 9 indicators and shortages of food and medicine. 10 (b) STRATEGY REQUIREMENT.—Not later than 90 11 days after the date of the enactment of this Act, the Sec- 12 retary of State shall submit a strategy for carrying out 13 the activities described in subsection (a) to— 14 (1) the Committee on Foreign Relations of the 15 Senate; 16 (2) the Committee on Appropriations of the 17 Senate; 18 (3) the Committee on Foreign Affairs of the 19 House of Representatives; and 20 (4) the Committee on Appropriations of the 21 House of Representatives. 22 (c) AUTHORIZATION OF APPROPRIATIONS.— 23 (1) IN GENERAL.—There is authorized to be 24 appropriated to the Secretary of State $10,000,000 25 for fiscal year 2018 to carry out the activities set 8 MDM17520 S.L.C. 1 forth in subsection (a) in accordance with this sec- 2 tion. 3 (2) NOTIFICATION REQUIREMENT.— 4 (A) IN GENERAL.—Amounts appropriated 5 or otherwise made available pursuant to para- 6 graph (1) may not be obligated until 15 days 7 after the date on which the President has pro- 8 vided notice of intent to obligate such funds to 9 the committees listed in subsection (b). 10 (B) WAIVER.—The Secretary of State may 11 waive the requirement under subparagraph (A) 12 if the Secretary of State determines that failure 13 to waive such requirement would pose a sub- 14 stantial risk to human health or welfare. If 15 such a waiver is invoked, the President shall no- 16 tify the committees listed in subsection (b) of 17 the intention to obligate funds under this sec- 18 tion as early as practicable, but in no event 19 later than 3 days after taking the action to 20 which such notification requirement was appli- 21 cable in the context of the circumstances neces- 22 sitating such waiver. 23 (d) BRIEFINGS.—Upon a request from one of the 24 committees listed in subsection (b), the Secretary of State 25 and the Administrator of the United States Agency for 9 MDM17520 S.L.C. 1 International Development shall brief the committee on 2 the progress made in implementing the strategy submitted 3 under subsection (b). 4 SEC. 5. REQUIREMENT FOR STRATEGY TO COORDINATE 5 INTERNATIONAL HUMANITARIAN ASSIST- 6 ANCE. 7 (a) SENSE OF CONGRESS.—It is the sense of Con- 8 gress that the United Nations humanitarian agencies, in- 9 cluding the Office for the Coordination of Humanitarian 10 Affairs, the World Health Organization, the Food and Ag- 11 riculture Organization, and UNICEF, should conduct and 12 publish an independent assessment on— 13 (1) the extent and impact of the shortages of 14 food and medicine in Venezuela; and 15 (2) the efforts needed to resolve such shortages. 16 (b) STRATEGY.—Not later than 90 days after the 17 date of the enactment of this Act, the Secretary of State, 18 in consultation with the Administrator of the United 19 States Agency for International Development, shall submit 20 a multi-year strategy to the Committee on Foreign Rela- 21 tions of the Senate and the Committee on Foreign Affairs 22 of the House of Representatives that— 23 (1) describes how the United States will secure 24 support from international donors, including re- 25 gional partners in Latin America and the Caribbean, 10 MDM17520 S.L.C. 1 for the provision of humanitarian assistance to the 2 people of Venezuela; 3 (2) identifies governments that are willing to 4 provide financial and technical assistance for the 5 provision of such humanitarian assistance to the 6 people of Venezuela and a description of such assist- 7 ance; and 8 (3) identifies the financial and technical assist- 9 ance to be provided by multilateral institutions, in- 10 cluding the United Nations humanitarian agencies 11 listed in subsection (a), the Pan American Health 12 Organization, the Inter-American Development 13 Bank, and the World Bank, and a description of 14 such assistance. 15 (c) DIPLOMATIC ENGAGEMENT AND COORDINA- 16 TION.—The Secretary of State, in coordination with the 17 Administrator of the United States Agency for Inter- 18 national Development, as appropriate, shall— 19 (1) carry out diplomatic engagement to secure 20 contributions of financial and technical assistance 21 from international donors and multilateral institu- 22 tions in support of the strategy submitted under 23 subsection (b); and 11 MDM17520 S.L.C. 1 (2) take all necessary steps to ensure effective 2 cooperation among international donors and multi- 3 lateral institutions in support of such strategy. 4 (d) BRIEFINGS.—Upon a request from the Com- 5 mittee on Foreign Relations of the Senate or the Com- 6 mittee on Foreign Affairs of the House of Representatives, 7 the Secretary of State and the Administrator of the 8 United States Agency for International Development shall 9 brief such committee on the progress made in imple- 10 menting the strategy submitted under subsection (b). 11 SEC. 6. SUPPORT FOR ORGANIZATION OF AMERICAN 12 STATES INTER-AMERICAN DEMOCRATIC 13 CHARTER. 14 (a) FINDINGS.—Congress makes the following find- 15 ings: 16 (1) Article 1 of the Inter-American Democratic 17 Charter, adopted by the Organization of American 18 States in Lima on September 11, 2001, affirms, 19 ‘‘The peoples of the Americas have a right to democ- 20 racy and their governments have an obligation to 21 promote and defend it.’’. 22 (2) Article 19 of the Inter-American Demo- 23 cratic Charter states ‘‘an unconstitutional interrup- 24 tion of the democratic order or an unconstitutional 25 alteration of the constitutional regime that seriously 12 MDM17520 S.L.C. 1 impairs the democratic order in a member state, 2 constitutes, while it persists, an insurmountable ob- 3 stacle to its government’s participation in sessions of 4 the General Assembly . . . and other bodies of the 5 Organization.’’. 6 (3) Article 20 of the Inter-American Demo- 7 cratic Charter provides— 8 (A) ‘‘In the event of an unconstitutional al- 9 teration of the constitutional regime that seri- 10 ously impairs the democratic order in a member 11 state, any member state or the Secretary Gen- 12 eral may request the immediate convocation of 13 the Permanent Council to undertake a collective 14 assessment of the situation and to take such de- 15 cisions as it deems appropriate.’’; and 16 (B) ‘‘The Permanent Council, depending 17 on the situation, may undertake the necessary 18 diplomatic initiatives, including good offices, to 19 foster the restoration of democracy.’’. 20 (b) SENSE OF CONGRESS.—It is the sense of Con- 21 gress that— 22 (1) Venezuelan President Nicola´s Maduro and 23 the Supreme Tribunal of Justice of Venezuela have 24 carried out systematic efforts to undermine, block, 25 and circumvent the authorities and responsibilities 13 MDM17520 S.L.C. 1 of the Venezuelan National Assembly as mandated 2 in the Constitution of the Bolivarian Republic of 3 Venezuela; 4 (2) such efforts by President Maduro and the 5 Supreme Tribunal of Justice of Venezuela amount to 6 an unconstitutional alternation of the constitutional 7 regime that seriously impairs the democratic order 8 in Venezuela; and 9 (3) the Secretary of State, working through the 10 United States Permanent Mission to the Organiza- 11 tion of American States, should take additional steps 12 to support ongoing efforts by Secretary General Luis 13 Almagro— 14 (A) to invoke the Inter-American Demo- 15 cratic Charter; 16 (B) to advance a collective assessment of 17 the situation in Venezuela; and 18 (C) to promote diplomatic initiatives to 19 foster the restoration of Venezuelan democracy. 20 SEC. 7. SUPPORT FOR INTERNATIONAL ELECTION OBSER- 21 VATION MISSIONS AND DEMOCRATIC CIVIL 22 SOCIETY IN VENEZUELA. 23 (a) IN GENERAL.—Subject to the availability of ap- 24 propriations, the Secretary of State, in coordination with 14 MDM17520 S.L.C. 1 the Administrator of the United States Agency for Inter- 2 national Development, shall work — 3 (1) with the Organization of American States to 4 ensure credible international observation that con- 5 tributes to free, fair, and transparent democratic 6 electoral processes in Venezuela; and 7 (2) directly, or through nongovernmental orga- 8 nizations— 9 (A) to defend internationally recognized 10 human rights for the people of Venezuela; 11 (B) to support the efforts of independent 12 media outlets to broadcast, distribute, and 13 share information beyond the limited channels 14 made available by the Government of Ven- 15 ezuela; 16 (C) to facilitate open and uncensored ac- 17 cess to the Internet for the people of Venezuela; 18 and 19 (D) to combat corruption and improve the 20 transparency and accountability of institutions 21 that are part of the Government of Venezuela. 22 (b) VOICE AND VOTE AT THE OAS.—The Secretary 23 of State, acting through the United States Permanent 24 Representative to the Organization of American States, 25 should advocate and build diplomatic support for sending 15 MDM17520 S.L.C. 1 an election observation mission to Venezuela to ensure 2 that democratic electoral processes are organized and car- 3 ried out in a free, fair, and transparent manner. 4 (c) STRATEGY REQUIREMENT.—Not later than 90 5 days after the date of the enactment of this Act, the Sec- 6 retary of State shall submit a strategy to carry out the 7 activities described in subsection (a) to— 8 (1) the Committee on Foreign Relations of the 9 Senate; 10 (2) the Committee on Appropriations of the 11 Senate; 12 (3) the Committee on Foreign Affairs of the 13 House of Representatives; and 14 (4) the Committee on Appropriations of the 15 House of Representatives. 16 (d) AUTHORIZATION OF APPROPRIATIONS.— 17 (1) IN GENERAL.—There are authorized to be 18 appropriated to the Secretary of State for fiscal year 19 2018— 20 (A) $500,000 to carry out the activities set 21 forth in subsection (a)(1); and 22 (B) $9,500,000 to carry out the activities 23 set forth in subsection (a)(2). 24 (2) NOTIFICATION REQUIREMENT.— 16 MDM17520 S.L.C. 1 (A) IN GENERAL.—Except as provided in 2 subparagraph (B), amounts appropriated or 3 otherwise made available pursuant to paragraph 4 (1) may not be obligated until 15 days after the 5 date on which the President has provided notice 6 of intent to obligate such funds to the commit- 7 tees listed in subsection (c). 8 (B) WAIVER.— 9 (i) IN GENERAL.—The Secretary of 10 State may waive the notification require- 11 ment under subparagraph (A) if the Presi- 12 dent determines that such requirement 13 would pose a substantial risk to human 14 health or welfare. 15 (ii) NOTIFICATION REQUIREMENT.—If 16 a waiver is invoked under clause (i), the 17 Secretary of State shall notify the commit- 18 tees listed in subsection (c) of the intention 19 to obligate funds under this section as 20 early as practicable, but in no event later 21 than 3 days after taking the action to 22 which such notification requirement was 23 applicable in the context of the cir- 24 cumstances necessitating such waiver. 17 MDM17520 S.L.C. 1 (e) BRIEFINGS.—Upon a request from 1 of the com- 2 mittees listed in subsection (c), the Secretary of State and 3 the Administrator of the United States Agency for Inter- 4 national Development shall brief the committee on the 5 progress made in implementing the strategy submitted 6 under subsection (c). 7 SEC. 8. SUPPORT FOR CARIBBEAN COUNTRIES. 8 (a) FINDINGS.—Congress makes the following find- 9 ings: 10 (1) Caribbean countries, despite facing their 11 own challenges, can play a significant role in the 12 Caribbean region by responding to the humanitarian 13 and political crisis in Venezuela. 14 (2) Energy security is a major challenge for 15 Caribbean countries, which depend largely on high- 16 cost imported fuel for electricity generation, and 17 many of which have benefited from preferential 18 treatment by Venezuela. 19 (3) Caribbean countries— 20 (A) are a market for United States prod- 21 ucts and services; 22 (B) have access to renewable and other en- 23 ergy sources; and 24 (C) can attract financing to develop and 25 implement new energy technologies and ap- 18 MDM17520 S.L.C. 1 proaches, with assistance and through public- 2 private partnerships. 3 (b) SENSE OF CONGRESS.—It is the Sense of Con- 4 gress that— 5 (1) the Secretary of State should— 6 (A) strengthen the Caribbean Energy Se- 7 curity Initiative; and 8 (B) extend current programming, such as 9 the Caribbean Sustainable Energy Road Map 10 and Strategy; and 11 (2) the Secretary of State, working with the 12 Administrator of the United States Agency for 13 International Development, the Director of the 14 United States Trade and Development Agency, and 15 the President and Chief Executive Officer of the 16 Overseas Private Investment Corporation, should— 17 (A) support the Clean Energy Finance Fa- 18 cility for the Caribbean and Central America to 19 encourage and facilitate regional investments in 20 energy diversification; 21 (B) promote energy efficiency and integra- 22 tion of renewables into Caribbean energy grids; 23 and 24 (C) promote United States energy missions 25 to the Caribbean. 19 MDM17520 S.L.C. 1 (c) STATEMENT OF POLICY.—According to the 2 United States-Caribbean Strategic Engagement Act of 3 2016 (Public Law 114–291), it is the policy of the United 4 States to increase engagement with— 5 (1) the governments in the Caribbean region; 6 and 7 (2) the private sector and civil society in the 8 United States and in the Caribbean. 9 SEC. 9. CONCERNS AND REPORT ON THE INVOLVEMENT OF 10 VENEZUELAN OFFICIALS IN CORRUPTION 11 AND ILLICIT NARCOTICS TRAFFICKING. 12 (a) FINDINGS.—Congress makes the following find- 13 ings: 14 (1) The deterioration of governance in Ven- 15 ezuela has been exacerbated by the involvement of 16 senior officials of the Government of Venezuela, in- 17 cluding members of the National Electoral Council, 18 the judicial system, and the Venezuelan security 19 forces, in acts of corruption and illicit narcotics traf- 20 ficking and related money laundering. 21 (2) In March 2015, the Department of the 22 Treasury’s Financial Crimes Enforcement Network 23 determined that approximately $2,000,000,000 had 24 been siphoned from Venezuela’s public oil company, 25 Petro´leos de Venezuela S.A., in conjunction with its 20 MDM17520 S.L.C. 1 designation of the Banca Privada d’Andorra as a 2 Foreign Financial Institution of Primary Money 3 Laundering Concern. 4 (3) On August 1, 2016, General Nestor 5 Reverol, Venezuela’s current Minister of Interior and 6 former National Guard commander, was indicted in 7 a United States district court for participating in an 8 international cocaine trafficking conspiracy. 9 (4) On November 18, 2016, Franqui Francisco 10 Flores de Freitas and Efrain Antonio Campo Flores, 11 nephews of President Maduro and Venezuelan First 12 Lady Cilia Flores, were convicted in a United States 13 district court on charges of conspiring to import co- 14 caine into the United States. 15 (5) On February 13, 2017, the Department of 16 the Treasury’s Office of Foreign Assets Control des- 17 ignated Venezuelan Vice President Tareck Zaidan El 18 Aissami Maddah for his involvement in illicit nar- 19 cotics trafficking, pursuant to the Foreign Narcotics 20 Kingpin Designation Act (21 U.S.C. 1901 et seq.; 21 title VIII of Public Law 106–120). 22 (6) The Department of the Treasury’s Office of 23 Foreign Assets Control has designated additional in- 24 dividuals and senior Venezuelan officials for their in- 21 MDM17520 S.L.C. 1 volvement in illicit narcotics trafficking, pursuant to 2 such Act, including— 3 (A) Venezuelan national Samark Jose 4 Lopez Bello, who is the primary front man and 5 money launderer for Tareck Zaidan El Aissami 6 Maddah; 7 (B) Hugo Armando Carvajal Barrios, who 8 is the current National Assembly Deputy and 9 the former Director of Venezuela’s Military In- 10 telligence Directorate; 11 (C) Henry de Jesus Rangel Silva, who is 12 the current Governor of Trujillo State and the 13 former Director of Venezuela’s Directorate of 14 Intelligence and Prevention Services; 15 (D) Ramon Emilio Rodriguez Chacin, who 16 previously served as the Minister of Interior; 17 and 18 (E) Freddy Alirio Bernal Rosales, who pre- 19 viously served as the Mayor of the Libertador 20 municipality of Caracas. 21 (b) DEFINITIONS.—In this section: 22 (1) CORRUPTION.—The term ‘‘corruption’’ 23 means the extent to which public power is exercised 24 for private gain, including by bribery, nepotism, 25 fraud, or embezzlement. 22 MDM17520 S.L.C. 1 (2) GRAND CORRUPTION.—The term ‘‘grand 2 corruption’’ means corruption committed at a high 3 level of government that— 4 (A) distorts policies or the central func- 5 tioning of the country; and 6 (B) enables leaders to benefit at the ex- 7 pense of the public good. 8 (c) REPORTING REQUIREMENT.— 9 (1) IN GENERAL.—Not later than 180 days 10 after the date of the enactment of this Act, the Sec- 11 retary of State, acting through the Bureau of Intel- 12 ligence and Research, and in consultation with the 13 intelligence community (as defined in section 3(4) of 14 the National Security Act of 1947 (50 U.S.C. 15 3003(4))), shall submit a report to Congress that 16 describes the involvement of senior officials of the 17 Government of Venezuela, including members of the 18 National Electoral Council, the judicial system, and 19 the Venezuelan security forces, in acts of corruption 20 in Venezuela, with a specific emphasis on acts of 21 grand corruption. 22 (2) ADDITIONAL ELEMENTS.—The report sub- 23 mitted under paragraph (1) shall— 24 (A) describe how the acts of corruption de- 25 scribed in the report pose direct challenges for 23 MDM17520 S.L.C. 1 United States national security and inter- 2 national security; 3 (B) identify individuals that frustrate the 4 ability of the United States to combat illicit 5 narcotics trafficking; and 6 (C) include input from the Drug Enforce- 7 ment Administration, the Office of Foreign As- 8 sets Control, and the Financial Crimes Enforce- 9 ment Network. 10 (3) FORM.—The report under paragraph (1) 11 shall be submitted in unclassified form, but may in- 12 clude a classified annex. The unclassified portion of 13 the report shall be made available to the public. 14 SEC. 10. SANCTIONS ON PERSONS RESPONSIBLE FOR PUB- 15 LIC CORRUPTION AND UNDERMINING DEMO- 16 CRATIC GOVERNANCE IN VENEZUELA. 17 (a) FINDING.—Executive Order 13692 (50 U.S.C. 18 1701 note), which was signed on March 8, 2015, estab- 19 lished sanctions against individuals responsible for under- 20 mining democratic processes and institutions and involved 21 in acts of public corruption that were not included in the 22 Venezuela Defense of Human Rights and Civil Society Act 23 of 2014 (Public Law 113–278). 24 MDM17520 S.L.C. 1 (b) SANCTIONS.—Section 5 of the Venezuela Defense 2 of Human Rights and Civil Society Act of 2014 (Public 3 Law 113–278) is amended— 4 (1) in subsection (a)— 5 (A) in paragraph (2), by striking ‘‘or’’ at 6 the end; 7 (B) by redesignating paragraph (3) as 8 paragraph (5); and 9 (C) by inserting after paragraph (2) the 10 following: 11 ‘‘(3) has perpetrated, or is responsible for or- 12 dering or otherwise directing, significant actions or 13 policies that undermine democratic processes or in- 14 stitutions; 15 ‘‘(4) has perpetrated, or is responsible for or- 16 dering or otherwise directing, significant acts of pub- 17 lic corruption; or’’; 18 (2) by redesignating subsections (e) and (f) as 19 subsections (f) and (g), respectively; 20 (3) by inserting after subsection (d) the fol- 21 lowing: 22 ‘‘(e) BRIEFINGS.—Upon a request from the Com- 23 mittee on Foreign Relations of the Senate or the Com- 24 mittee on Foreign Affairs of the House of Representatives, 25 the Secretary of State, in conjunction with the Secretary 25 MDM17520 S.L.C. 1 of the Treasury, shall offer a classified briefing on the ef- 2 forts to impose sanctions under this section and the im- 3 pact of such sanctions.’’; and 4 (4) in subsection (f), as redesignated, by strik- 5 ing ‘‘December 31, 2019’’ and inserting ‘‘December 6 31, 2022’’. 7 SEC. 11. CONCERNS OVER PDVSA TRANSACTIONS WITH 8 ROSNEFT. 9 (a) FINDINGS.—Congress makes the following find- 10 ings: 11 (1) In late 2016, Venezuelan state owned oil 12 company Petro´leos de Venezuela, S.A. (referred to in 13 this section as ‘‘PDVSA’’), through a no-compete 14 transaction, secured a loan from Russian govern- 15 ment-controlled oil company Rosneft, using 49.9 per- 16 cent of PDVSA’s American subsidiary, CITGO Pe- 17 troleum Corporation, including its assets in the 18 United States, as collateral. As a result of this 19 transaction, 100 percent of CITGO is held as collat- 20 eral by PDVSA’s creditors. 21 (2) CITGO, a wholly owned subsidiary of 22 PDVSA, is engaged in interstate commerce and 23 owns and controls critical energy infrastructure in 24 19 States in the United States, including an exten- 25 sive network of pipelines, 48 terminals, and 3 refin- 26 MDM17520 S.L.C. 1 eries, with a combined oil refining capacity of 2 749,000 barrels per day. CITGO’s refinery in Lake 3 Charles, Louisiana is the sixth largest refinery in the 4 United States. 5 (3) The Department of the Treasury imposed 6 sanctions on Rosneft, which is controlled by the Rus- 7 sian Government, and its Executive Chairman, Igor 8 Sechin, following Russia’s military invasion of 9 Ukraine and its illegal annexation of Crimea in 10 2014. 11 (4) The Department of Homeland Security has 12 designated the energy sector as critical to United 13 States infrastructure. 14 (5) The growing economic crisis in Venezuela 15 raises the probability that the Government of Ven- 16 ezuela and PDVSA will default on their inter- 17 national debt obligations, resulting in a scenario in 18 which Rosneft could come into control of CITGO’s 19 United States energy infrastructure holdings. 20 (b) SENSE OF CONGRESS.—It is the sense of Con- 21 gress that— 22 (1) control of critical United States energy in- 23 frastructure by Rosneft, a Russian government-con- 24 trolled entity currently under United States sanc- 27 MDM17520 S.L.C. 1 tions, would pose a significant risk to United States 2 national security and energy security; 3 (2) the President should take all necessary 4 steps to prevent Rosneft from gaining control of 5 critical United States interstate energy infrastruc- 6 ture; 7 (3) a default by PDVSA on its loan from 8 Rosneft, resulting in Rosneft coming into possession 9 of PDVSA’s United States CITGO assets, would 10 warrant careful consideration by the Committee on 11 Foreign Investment in the United States; 12 (4) if PDVSA defaults on its debt obligations, 13 the Department of the Treasury’s Office of Foreign 14 Asset Control should review CITGO’s transactions 15 with United States persons to assess and ensure 16 compliance with United States sanctions policies and 17 regulations; and 18 (5) the Department of Homeland Security 19 should conduct an assessment of the security risks 20 posed by foreign control of CITGO’s United States 21 energy infrastructure holdings.

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