New Sanctions Mandate Asset Freezes, Visa Bans for Anyone Aiding Russia's Crimea Tunnel Project

The “No Russian Tunnel to Crimea Act” is a foreign policy bill designed to slam the door shut on any non-U.S. person—meaning foreign individuals or companies—who tries to help Russia build, maintain, or fix a tunnel or bridge connecting mainland Russia to the illegally occupied Crimean peninsula. Think of it as an economic and travel block on anyone who helps Russia solidify its hold on Crimea.

This bill doesn't mess around. If the U.S. determines a foreign entity is involved in this construction, two major things happen immediately under Section 3. First, the President must use powerful sanctions laws (the International Emergency Economic Powers Act, or IEEPA) to freeze all property and financial interests belonging to that person or company if those assets are in the U.S. or controlled by a U.S. person. If you're a foreign contractor with a U.S. bank account or investments, those assets are suddenly locked down. Second, the person is instantly banned from entering the U.S., their visa is revoked, and they are denied any future entry.

The Cost of Doing Business with Moscow

This legislation is aimed squarely at deterring international business involvement in infrastructure projects that facilitate Russia’s military logistics. Since Russia has been using Crimea as a crucial base for its invasion of Ukraine (as noted in Section 2), the U.S. is trying to cut off any new supply lines. For example, if a Chinese construction company were to provide specialized drilling equipment or engineering expertise for the proposed tunnel, the company's executives and the company itself would face these mandatory sanctions, potentially crippling their ability to operate internationally due to asset freezes.

Exceptions and Executive Power

While the sanctions are mandatory, the bill does carve out a few sensible exceptions. You can still facilitate transactions for humanitarian aid, like selling food, medicine, or medical devices, and transport related to that aid is exempt. Also, the sanctions won't interfere with U.S. intelligence or law enforcement activities. However, where things get interesting is the power granted to the President. The President can waive these sanctions against a specific person if they certify to Congress that lifting the sanctions is vital for U.S. national security interests. This presidential waiver power, outlined in Section 3, means that while the sanctions are mandatory on paper, the Executive Branch retains significant discretion to lift them if it serves a larger strategic goal. The catch is they have to give the House and Senate Foreign Relations committees 15 days' notice before the waiver takes effect. This concentration of power in the Executive Branch is worth watching, as it allows for swift policy shifts based on national security needs, which can be interpreted broadly.