H.R. 5632

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5632 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5632

To impose sanctions with respect to Azerbaijan upon renewed acts of 
aggression, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 30, 2025

Mr. Issa (for himself and Mr. Bilirakis) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
to the Committees on the Judiciary, and Financial Services, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
committee concerned

_______________________________________________________________________

A BILL

To impose sanctions with respect to Azerbaijan upon renewed acts of 
aggression, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Preventing Escalation and Advancing 
Caucasus Engagement Act'' or the ``PEACE Act''.

SEC. 2. STATEMENT OF POLICY.

It is the policy of the United States to--
(1) support the sovereignty, territorial integrity, and 
independence of the Republic of Armenia and the Republic of 
Azerbaijan;
(2) support direct negotiations between the governments of 
the Republic of Armenia and the Republic of Azerbaijan to 
conclude a comprehensive, fair, and durable peace agreement 
between the two countries;
(3) utilize sanctions and related measures to deter the use 
of force as an alternative to constructive negotiations; and
(4) welcome and support initiatives of the Armenian 
Government, led by Prime Minister Nikol Pashinyan, to secure a 
long-standing peace agreement with the Republic of Azerbaijan, 
expel malign Russian influence from the Republic of Armenia, 
and strengthen ties between the Republic of Armenia and the 
United States.

SEC. 3. DEFINITIONS.

In this Act--
(1) the term ``agricultural commodity'' has the meaning 
given such term in section 102 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5602);
(2) the term ``appropriate congressional committees'' 
means--
(A) the Committee on Foreign Affairs of the House 
of Representatives; and
(B) the Committee on Foreign Relations of the 
Senate;
(3) the term ``foreign person'' means any individual or 
entity that is not a United States person;
(4) the term ``good'' means any article, natural or man-
made substance, material, supply, or manufactured product, 
including inspection and test equipment and excluding technical 
data;
(5) the term ``hostile action'' means an act of military 
aggression taken by a country that results in significant loss 
of life, the disabling of military systems, materiel, or 
personnel, the incapacitation of major utility or 
transportation infrastructure, or a material breach of another 
country's sovereignty, territorial integrity, or political 
independence;
(6) the term ``immediate family members'' has the meaning 
given the term ``immediate relatives'' in section 
201(b)(2)(A)(i) of the Immigration and Nationality Act (8 
U.S.C. 1201(b)(2)(A)(i));
(7) the term ``knowingly'', with respect to conduct, a 
circumstance, or a result, means that a person has actual 
knowledge, or should have known, of the conduct, the 
circumstance, or the result;
(8) the term ``medical device'' has the meaning given the 
term ``device'' in section 201 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321);
(9) the term ``medicine'' has the meaning given the term 
``drug'' in section 201 of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 321);
(10) the term ``military aggression'' means the deliberate 
initiation of armed force or other coercive military conduct by 
a country, not undertaken in response to an armed attack, that 
is reasonably expected to cause substantial harm to the 
territorial integrity and sovereignty of another country; and
(11) the term ``United States person'' means--
(A) a United States citizen or an alien lawfully 
admitted for permanent residence to the United States;
(B) an entity organized under the laws of the 
United States or any jurisdiction within the United 
States, including a foreign branch of such an entity; 
or
(C) any person within the United States.

SEC. 4. IMPOSITION OF SANCTIONS.

(a) In General.--If the President determines that the Republic of 
Azerbaijan has engaged in hostile actions against the Republic of 
Armenia, the President--
(1) shall immediately issue a certification to Congress to 
that effect; and
(2) upon issuance of such certification--
(A) shall impose against each person described in 
subsection (b) the sanctions described in subsection 
(c); and
(B) shall impose sanctions against foreign 
financial institutions as described in subsection (d).
(b) Persons Described.--A person described in this subsection is 
any person that--
(1) is--
(A) a senior Azerbaijani Government official 
responsible for the policy and operations of branches 
of the Azerbaijani Government directly involved in 
hostile actions against the Republic of Armenia; or
(B) an immediate family member of an individual 
described in subparagraph (A);
(2) is an Azerbaijani military unit or civilian agency that 
has engaged in hostile actions against the Republic of Armenia; 
or
(3) is a foreign person that has substantially and 
knowingly aided, abetted, taken part in, or otherwise 
facilitated hostile actions taken by persons described in 
paragraph (1) or (2) against the Republic of Armenia.
(c) Sanctions on Persons Described.--The sanctions described in 
this subsection are the following:
(1) Blocking of property.--The President shall exercise all 
of the powers granted to the President under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the 
extent necessary to block and prohibit all transactions in 
property and interests in property of the foreign person if 
such property and interests in property are in the United 
States, come within the United States, or are or come within 
the possession or control of a United States person.
(2) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--An alien 
described in subsection (a) is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other 
documentation to enter the United States; and
(iii) otherwise ineligible to be admitted 
or paroled into the United States or to receive 
any other benefit under the Immigration and 
Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--An alien described in 
subsection (a) is subject to revocation of any 
visa or other entry documentation regardless of 
when the visa or other entry documentation is 
or was issued.
(ii) Immediate effect.--A revocation under 
clause (i) shall take effect immediately and 
automatically cancel any other valid visa or 
entry documentation that is in the alien's 
possession.
(d) Imposition of Sanctions With Respect to Foreign Financial 
Institutions.--
(1) In general.--Except as specifically provided in this 
subsection, beginning on the date that is 60 days after the 
President's certification to Congress under this section, the 
President shall prohibit the opening, and prohibit or impose 
strict conditions on the maintaining, in the United States of a 
correspondent account or a payable-through account by a foreign 
financial institution that the President determines has 
knowingly conducted or facilitated any significant financial 
transaction with any Azerbaijani financial institution 
designated by the Secretary of the Treasury to have facilitated 
the trade of Azerbaijani petroleum or petroleum products.
(2) Designation.--The Secretary of the Treasury shall--
(A) publish a list of Azerbaijani financial 
institutions determined to have facilitated the trade 
of Azerbaijani petroleum or petroleum products; and
(B) publish a list of designated foreign financial 
institutions subject to prohibitions or conditions 
pursuant to paragraph (1).
(3) Exception for sales of agricultural commodities, food, 
medicine, and medical devices.--The President may not impose 
sanctions under paragraph (1) with respect to any person for 
conducting or facilitating a transaction for the sale of 
agricultural commodities, food, medicine, or medical devices to 
Azerbaijan.
(4) Applicability of sanctions with respect to foreign 
central banks.--Except as provided in paragraph (5), sanctions 
imposed under paragraph (1) shall apply with respect to a 
central bank of a foreign country, only insofar as it engages 
in a financial transaction for the sale or purchase of 
petroleum or petroleum products to or from Azerbaijan conducted 
or facilitated on or after that date that is 180 days after the 
President's certification to Congress under this section.
(5) Conditional exemption from sanctions with respect to 
petroleum transactions.--Sanctions imposed pursuant to 
paragraph (1) shall not apply with respect to a financial 
transaction conducted or facilitated by a foreign financial 
institution if--
(A) the financial transaction is only for trade in 
goods or services between the country with primary 
jurisdiction over the foreign financial institution and 
Azerbaijan; and
(B) any funds owed to Azerbaijan as a result of 
such trade are credited to an account located in the 
country with primary jurisdiction over the foreign 
financial institution.
(e) Additional Sanctions.--If, at any time during the 
implementation of Joint Declaration signed on August 8, 2025, by 
Armenia and Azerbaijan, the Secretary of State determines that a person 
has knowingly attempted to delay, frustrate, or thwart the successful 
conclusion of a peace agreement consistent with the principles of such 
Joint Declaration, the President may impose one or more sanctions 
described in subsection (c) of this section against that person.

SEC. 5. FURTHER EXCEPTIONS TO SANCTIONS AND WAIVER.

(a) Exceptions.--The sanctions described in section 4 shall not 
apply to the following:
(1) Any activity subject to the reporting requirements 
under title V of the National Security Act of 1947 (50 U.S.C. 
3091 et seq.), or to any authorized intelligence activities of 
the United States.
(2) The admission of an alien to the United States if such 
admission is necessary to comply with United States obligations 
under the Agreement between the United Nations and the United 
States of America regarding the Headquarters of the United 
Nations, signed at Lake Success June 26, 1947, and entered into 
force November 21, 1947, or under the Convention on Consular 
Relations, done at Vienna April 24, 1963, and entered into 
force March 19, 1967, or other applicable international 
obligations of the United States.
(3) The conduct or facilitation of a transaction for the 
sale of agricultural commodities, food, medicine, or medical 
devices to the Republic of Azerbaijan or for the provision of 
humanitarian assistance to the people of the Republic of 
Azerbaijan, including engaging in a financial transaction 
relating to humanitarian assistance or for humanitarian 
purposes or transporting goods or services that are necessary 
to carry out operations relating to humanitarian assistance or 
humanitarian purposes.
(4) The requirement to block and prohibit all transactions 
in all property and interests in property under this Act shall 
not include the authority or a requirement to impose sanctions 
on the importation of goods.
(b) Waiver.--The President may waive application of sanctions 
described in section 4 with respect to a person if the President--
(1) determines that the waiver is in the national interests 
of the United States; and
(2) submits to the appropriate congressional committees a 
report on the waiver and the reasons for the waiver.

SEC. 6. TERMINATION.

(a) In General.--The President may terminate the application of 
such sanctions with respect to--
(1) any person that--
(A) has taken genuine and verifiable steps to end 
their participation in or facilitation of hostile 
actions against the Republic of Armenia for a period of 
not less than one year after the application of 
sanctions under section 4; and
(B) the President determines does not pose a 
substantial risk of re-engaging in hostile actions 
against the Republic of Armenia for a period of not 
less than one year after the application of sanctions 
under section 4; and
(2) any foreign financial institution upon the President's 
certification that the Republic of Azerbaijan has ceased all 
hostile actions against the Republic of Armenia for a period of 
not less than one year after the application of sanctions under 
section 4.
(b) Release of Credited Funds.--
(1) In general.--Upon a Presidential certification under 
subsection (a)(2) with respect to a foreign financial 
institution, the President may authorize the release of any 
funds to Azerbaijan which were owed but had been instead 
credited to an account pursuant to section 4(d)(5).
(2) Report.--Not later than 15 days after the date on which 
funds have been released to Azerbaijan under this subsection, 
the President shall transmit to appropriate congressional 
committees a report on the release of such funds.
(c) Report.--Not later than 15 days prior to the termination of 
sanctions with respect to a person under subsection (a), the President 
shall submit a report to the appropriate congressional committees that 
includes--
(1) the name and nationality of the person against whom 
sanctions are being terminated;
(2) the hostile actions previously committed or facilitated 
by such person that led to the imposition of sanctions against 
the person;
(3) the genuine and verifiable steps taken by the person to 
end the person's participation in or facilitation of hostile 
actions against the Republic of Armenia; and
(4) the President's determination that the person does not 
pose a substantial risk of re-engaging in hostile actions 
against the Republic of Armenia.

SEC. 7. REPORTING REQUIREMENTS.

(a) Presidential Reporting.--
(1) In general.--Not later than 30 days after the date of 
the enactment of this Act, and every 90 days thereafter, the 
President shall submit a report to the appropriate 
congressional committees that contains a determination as to 
whether the Republic of Azerbaijan has engaged in hostile 
actions against the sovereign territory of Armenia.
(2) Form.--The report submitted pursuant to paragraph (1) 
shall be submitted in unclassified form but may contain a 
classified annex.
(b) Annual Review.--Not later than one year after the imposition of 
sanctions pursuant to this Act, and no less frequently than annually 
thereafter, the President shall submit a report to the appropriate 
congressional committees describing the status of any sanctions imposed 
pursuant to section 4, including an assessment of the effectiveness of 
the sanctions.

SEC. 8. SUNSET.

The provisions of this Act shall expire on the date that is 7 years 
after the date of the enactment of this Act.

SEC. 9. SEVERABILITY.

If any provision of this Act, or the application thereof, is held 
invalid, the remainder of this Act and the application of such 
provision to other persons or circumstances shall not be affected 
thereby.
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