July 10, 2025
Mr. Nunn of Iowa (for himself and Mr. Gottheimer) introduced the following bill; which was referred to the Committee on Financial Services
To secure a peaceful resolution to the Russia-Ukraine conflict by requiring the Secretary of the Treasury to prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by certain foreign financial institutions, and for other purposes.
Section 1. Short title
This Act may be cited as the Preventing the Escalation of Armed Conflict in Europe Act of 2025
or the PEACE Act of 2025
.
Sec. 2. Findings
Congress finds the following:
(1)
During the night of March 6–7, 2025, only one week after the President called for peace between Russia and Ukraine, the Russian military bombarded Ukrainian energy infrastructure and civilian residences.
(2)
DTEK, a Ukrainian gas producer, noted that the assault represented the sixth Russian attack on its Odesa facilities in just the preceding two and a half weeks.
(3)
On March 7, 2025, the President published the following statement: Based on the fact that Russia is absolutely
.pounding
Ukraine on the battlefield right now, I am strongly considering large scale Banking Sanctions, Sanctions, and Tariffs on Russia until a Cease Fire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED. To Russia and Ukraine, get to the table right now, before it is too late.
(4)
Despite the President’s calls for a peace settlement, Russia has continued to assault Ukraine, including an April 4 missile attack on Kryvyi Rih that killed 20 people and an April 13 strike on Sumy resulting in 35 deaths.
(5)
On May 25, 2025, Russia launched its largest aerial attack of the war, deploying hundreds of drones and ballistic missiles throughout Ukrainian territory.
(6)
On May 27, 2025, the President posted on social media with reference to Russian leader Vladimir Putin: He’s playing with fire!
.
(7)
Hours after a July 3, 2025, call between the President and Putin, Russia carried out its largest-yet aerial assault of the war against Kyiv. Less than one week later, following remarks by the President at a Cabinet meeting criticizing Putin, Russia launched an even more expansive drone strike against Ukrainian targets.
Sec. 3. Sanctions with respect to the Russian Federation
(a) In general
Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe regulations to prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly provides significant financial services to—
(1)
any foreign person designated for the imposition of sanctions with respect to the Russian Federation under—
(A)
Executive Orders 13660, 13661, 13662, 13685, or 14024; or
(B)
title II of the Countering America’s Adversaries through Sanctions Act (Public Law 114–44) or an amendment made by that title;
(2)
a foreign financial institution subject to the prohibitions of Directive 2 under Executive Order 14024;
(3)
an entity listed in Annex 1 of Directive 3 under Executive Order 14024; or
(4)
any foreign person that the Secretary finds operates in the energy sector of the Russian Federation.
(b) Penalties
(1) Civil penalty
A person who violates, attempts to violate, conspires to violate, or causes a violation of regulations prescribed under this subsection shall be subject to a civil penalty in an amount not to exceed the greater of—
(A)
$377,700; or
(B)
an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.
(2) Criminal penalty
A person who willfully commits, willfully attempts to commit, or willfully conspires to commit, or aids or abets in the commission of, a violation of regulations prescribed under this subsection shall, upon conviction, be fined not more than $1,000,000, or if a natural person, may be imprisoned for not more than 20 years, or both.
Sec. 4. Determination required
Not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury shall submit a report to Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate determining whether the following are foreign persons described under section 3(a)(4):
(1)
Gazprom.
(2)
Rosneft.
(3)
Lukoil.
Sec. 5. Waiver
With respect to a foreign financial institution, the President may waive the requirements of section 3(a) for not more than 180 days at a time upon reporting to Congress that—
(1)
the waiver advances the objective of resolving the national emergency described in any Executive Order listed under section 3(a)(1); or
(2)
the waiver is important to the national interest of the United States, provided that the President includes a detailed explanation of the reasons therefor.
Sec. 6. Termination
This Act shall have no force or effect on the earlier of—
(1)
30 days after the date that the President reports to Congress that the Russian Federation has ceased destabilizing activities with respect to the sovereignty and territorial integrity of Ukraine; or
(2)
the date that is 5 years after the date of the enactment of this Act.