CPA Urges Speaker Pelosi to Pass Legislation Imposing Capital Markets and Secondary Sanctions on China and Russia

WASHINGTON — The Coalition for a Prosperous America (CPA) urged House Speaker Nancy Pelosi (D-CA) to prioritize the passage of additional legislation to impose capital markets sanctions and secondary sanctions on Russia and China. Earlier this month, CPA applauded the House for unanimously passing legislation (H.R. 7108) that would repeal permanent normal trade relations (PNTR) status for Russia. Read CPA’s full letter here.

“While the House took swift action to remove Russia’s PNTR status, more action is required,” the letter states. “On March 17, the House Committee on Financial Services marked-up a handful of bills, taking aim at debt relief for Ukraine and punishment for Russia and its accomplice, Belarus. This tranche of bills touches on some key issues, but noticeably lacks high priority components that we sincerely believe belong in the final bills that come to the House floor.”

In February, CPA announced its support for increased sanctions on Russian companies and institutions — including capital markets sanctions and secondary sanctions on those who seek to help Russia circumvent U.S. sanctions. CPA also called for massive American reindustrialization in light of Russia’s illegal invasion of Ukraine. Earlier this month, Senator Tommy Tuberville (R-AL), along with Senators Jim Risch (R-ID), John Cornyn (R-TX), Rick Scott (R-FL), Kevin Cramer (R-ND), and Mike Braun (R-IN), called on President Biden to ban Russian companies from the United States financial system to ensure American investors are not unwittingly providing capital to fund Russia’s war against Ukraine. 

“First, the Russian sanctions package that comes to the House floor must address the urgent need to impose further — and more serious — capital markets sanctions against Russian companies trading and raising funds in our markets in a manner appearing to be ‘business as usual,’” the letter continues. “Second, the bills must also establish a mechanism by which secondary sanctions can be immediately imposed upon those countries, institutions, or individuals who assist Russia or Belarus directly or assist Russia or Belarus in evading U.S. sanctions or diluting their impact.”

CPA also supports two additional pieces of legislation sponsored by Senator Marco Rubio (R-FL). Rubio’s IMPAIR Russia Act (S.3733) would prohibit U.S. institutional investment in Russian securities. Many Americans, including millions of retirees and pensioners, have money tied up in Russian markets — often without their knowledge — by fund managers. Additionally, Rubio’s Crippling Unhinged Russian Belligerence and Chinese Involvement in Putin’s Schemes (CURB CIPS) Act to sanction Chinese financial institutions that conduct transactions with any Russian financial institutions using alternative financial messaging systems to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Read CPA’s full letter here.

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