On April 8, 2022, the President signed into law two bills suspending normal trade relations with Russia and Belarus and banning the import of Russian energy products. Both measures passed Congress by an overwhelming majority in the US House of Representatives and unanimous votes in the US Senate.
Ending Importation of Russian Oil Act (H.R. 6968)
On March 8, 2022, President Biden issued an Executive Order (“EO 14066“) that bans the importation of Russian oil, liquefied natural gas, and coal. EO 14066 also bans new US investment in Russia’s energy sector and prohibits US financing for foreign companies investing in Russian energy.
This law statutorily bans the import of Russian oil and energy products into the United States (specifically, all products under Chapter 27 of the Harmonized Tariff Schedule (“HTS”)), requiring that it be done in a manner consistent with EO 14066.
- The law would allow the President to terminate the import ban if he submits to Congress a certification in which he has determined the following: (1) that Russia has reached an agreement with Ukraine to withdraw Russian troops and cease military hostilities in Ukraine; (2) that Russia poses no immediate military threat of aggression to any nation that is part of NATO; and (3) that Russia recognizes the right of Ukrainians to independently and freely choose their own government.
- Congress could overturn the President’s termination of the import ban by enacting a joint resolution of disapproval (which could be vetoed by the President). The law establishes expedited procedures for congressional consideration of a resolution of disapproval (and for consideration of a vetoed resolution), including by prohibiting the measure from being filibustered in the Senate.
Suspending Normal Trade Relations with Russia and Belarus Act (H.R. 7108)
Congress granted Russia most favored nation (“MFN”) status as part of the 2012 Russia and Moldova Jackson–Vanik Repeal and Sergei Magnitsky Rule of Law Accountability Act (P.L. 112-208). Under World Trade Organization (“WTO”) rules, failure to grant Russia normal trade relations would have denied WTO benefits to the United States. Only two countries (Cuba and North Korea) do not currently have normal trade relations (“NTR”) status in trade with the United States. The 2012 law to grant Russia permanent NTR status was also needed because Russia was otherwise prohibited from receiving unconditional and permanent NTR under Title IV of the Trade Act of 1974 (P.L. 93-618), commonly known as the Jackson-Vanik amendment. Without NTR status, US tariffs on Russian imports generally would increase.
This law withdraws NTR status from Russia and Belarus, reimposes non-MFN (HTS column 2) tariffs on their goods until January 1, 2024, and allows the President to further increase tariffs on products from Russia and Belarus — but also allows the President to restore normal trade relations with Russia and Belarus subject to certain conditions and congressional approval.
- Under the law, the President could permanently or temporarily (for up to 1 year) restore NTR status and return US tariffs for Russian or Belarusian goods back to MFN levels if he submits to Congress a certification in which he has determined the following: (1) that Russia (and/or Belarus, whichever is applicable) has reached an agreement with Ukraine to withdraw Russian (and/or Belarusian) troops and cease military hostilities in Ukraine; (2) that Russia (and/or Belarus) poses no immediate military threat of aggression to any nation that is part of NATO; and (3) that Russia (and/or Belarus) recognizes the right of Ukrainians to independently and freely choose their own government.
- Congress could reject the President’s certification by enacting a joint resolution of disapproval (which could be vetoed by the President). The law establishes expedited procedures for congressional consideration of a resolution of disapproval (and for consideration of a vetoed resolution), including by prohibiting the measure from being filibustered in the Senate.
This law also directs the United States Trade Representative to use the voice and influence of the United States at the WTO to (1) condemn the recent aggression in Ukraine; (2) encourage other WTO members to suspend trade concessions to Russia and Belarus; (3) consider further steps towards suspending Russia’s participation in the WTO; and (4) work to halt Belarus’ WTO accession process.
Finally, this law permanently reauthorizes the Global Magnitsky Human Rights and Accountability Act, which was set to sunset in December 2022. The Magnitsky Act authorizes sanctions on individuals responsible for human rights abuses and corruption.
