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Sec. 5590 of the FY 2023 NDAA

Date issued: Dec. 23 2022

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SEC. 5590. IMPOSITION OF SANCTIONS WITH RESPECT TO THE SALE, SUPPLY, OR TRANSFER OF GOLD TO OR FROM RUSSIA.

(a) Identification.--Not later than 90 days after the date of the enactment of this Act, and periodically as necessary thereafter, the President--
(1) shall submit to Congress a report identifying foreign persons that knowingly participated in a significant transaction--
(A) for the sale, supply, or transfer (including transportation) of gold, directly or indirectly, to or from the Russian Federation or the Government of the Russian Federation, including from reserves of the Central Bank of the Russian Federation held outside the Russian Federation; or
(B) that otherwise involved gold in which the Government of the Russian Federation had any interest; and
(2) shall impose the sanctions described in subsection (b)(1) with respect to each such person; and
(3) may impose the sanctions described in subsection (b)(2) with...

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TURBOFAC Commentary (1108 words)

Notes:

1) BACKGROUND - STRUCTURE OF STATUTE AND NATURE OF CONDUCT TARGETED

Section 5590 of the National Defense Authorization Act (NDAA) for Fiscal Year 2023, passed on 12-23-22, is the first pure "secondary sanctions" provision targeting Russia since the 2-2022 invasion of Ukraine. Compare Sec. 7501 et seq. of the FY 2020 NDAA (“Protecting Europe's Energy Security Act of 2019”), which is similar in most material respects except with regard to the type of activity targeted for sanctions.

Here, "mandatory" sanctions apply to any "foreign person" identified as having (i.e. affirmatively determined to have) "knowingly participated in a significant transaction...for the sale, supply, or transfer (including transportation) of gold, directly or indirectly, to or from the Russian Federation or the Government of the Russian Federation, including from reserves of the Central Bank of the Russian Federation...