H.R. 8219: Barring Leverage and Obstruction that Contributes to Kremlin Profits Undermining Transatlantic Interests and NATO Act

This bill, formally titled the "Barring Leverage and Obstruction that Contributes to Kremlin Profits Undermining Transatlantic Interests and NATO Act" or "BLOCK PUTIN Act," seeks to address Hungary's energy dependency on Russia and its actions that may hinder support for Ukraine. Below is a summary of its key components:

Purpose

The bill aims to:

• Encourage Hungary to reduce its dependence on Russian energy sources such as oil and gas.
• Hold Hungary accountable for any actions that obstruct financial or military assistance to Ukraine.

Background Findings

The bill includes findings highlighting the concerns related to:

• The significant energy dependence of European countries on Russia, particularly noted during the Russian invasion of Ukraine.
• The response of the U.S. and EU in imposing sanctions on Russia to limit its energy revenue.
• The REPowerEU initiative introduced by the European Commission, aiming to phase out reliance on Russian energy before 2028.
• The increasing reliance of Hungary on Russian energy, estimated at 30 percent since the invasion.
• Hungary's efforts that obstruct EU assistance to Ukraine.

Policy Statements

The Congress expresses a sense that:

• It is in the U.S. national security interests to promote diversification from Russian energy.
• EU member states should support Ukraine financially.

Sanctions Provisions

The bill mandates that:

• The U.S. President must impose sanctions on senior officials from the Hungarian government who:
• Block or delay assistance to Ukraine.
• Facilitate oil or gas imports from Russia.
• Sanctions can include blocking property and assets in the U.S., and ineligibility for U.S. visas.

Exceptions to Sanctions

Sanctions will not apply if Hungary:

• Implements a plan to reduce its dependency on Russian energy by 2028.
• Ceases actions to block assistance to Ukraine for at least 180 days.

Reporting Requirements

Within 30 days of the bill's enactment, the Secretary of the Treasury and the Secretary of State must report on any U.S. government actions that facilitate Hungary's purchases of Russian energy.

Duration and Review of Sanctions

The sanctions imposed will be reviewed every 180 days, with the possibility for the President to waive them under certain national security conditions.

Definitions and Committees

The bill includes specific definitions and clarifies the relevant congressional committees that will oversee the implementation and review of the bill's provisions.

Relevant Companies

• GAZP: Gazprom, a Russian state-controlled energy company, may be significantly impacted by any sanctions on oil and gas imports affecting Hungary.
• ROSN: Rosneft, another major oil company in Russia, may also face consequences from sanctions targeting its revenues through European imports.
• LUKOY: Lukoil could be affected similarly through sanctions related to its dealings with Hungary for Russian oil.