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.