Banking committee as treasury and Justice Department officials testified today on sanctions against russia amid its invasion of ukraine. Live coverage on cspan three. Todays hearing is in hybrid format, witnesses are in person, thank you, both, for being there. I know you have busy schedules, including today, thank you. Members have the option to him here in person or virtually, as you know. Vladimir putins war in ukraine has massacred innocent civilian communities, weaponized food and energy sources, jeopardize the future of a sovereign democracy. His actions threatened global order, drawing a clear distinction between those who stand for democracy and rule of law and the forces of repression and tyranny. There are two things, two things, that putin did not count on, first, the resilience and strength and spirit of the ukrainian people when clear display last week, again, when the Ukrainian Military reached in kharkiv, ukraines second largest city, second, the ability of President Biden to assemble and lead abroad and unified coalition of allies and to keep the coalition together. This administration with bipartisan and bicameral support from congress spearheaded a forceful and comprehensive and Multi Lateral response to support the ukrainian people and to isolate russia. Todays hearing examines economic strategy. This hearing follows on the committees work in evaluating or sanctions policy as we did last year at a hearing on treasury sanctions review and the hearing this past ally, we heard from the Congress Department on its expansion restrictions on exports to russia. Because we are united, how her efforts are beginning to work. Secretary of state blinken said last week, putin thought he would divide and weaken and nato, again, putin was wrong his actions have led to natos growth. We are now police to welcome sweden and finland. His actions lead to natos growth reminding the world the vital role this alliance and democracy plays. America wise to russian propaganda. This administration corralled an unprecedented Multi Lateral coalition which includes our European Partners and other allied countries to oppose one of the most comprehensive sets of economic sanctions in recent years. These measures aimed to limit trade and financial regulations with russia, to penalize corrupt Russian Oligarchs for supporting putin and to cripple russias economy cutting off support for funding this brutal war. Weve dramatically escalated these economic efforts and its impacting every sector, sanctions against a number of major russian banks, dozens of russian officials and putin associates, expanded export controls that restricts russias access to the technologies needed to sustain its aggressive military capabilities, limitations on imports of Russian Energy products, and even the siege of the 300 Million Dollar yacht owned by a sanctioned Russian Oligarch. The impact has rippled throughout the russian economy, damaging their Defence Industrial base. Ukrainian troops to found Russian Military equipment right with s conductors that appear to have been taken out of Home Appliances like dishwashers and refrigerators. Passing the six month mark of the war, we welcome back Elizabeth Rosenberg who serves as assistant secretary for financial crimes at the department of treasury and welcome andrea adams, director of the Kleptocapture Task force at the department of justice. We look forward to hearing from the witnesses about the economic sanctions designed to weaken russian economy and about our efforts to pursue Russian Oligarch assets. Were making it increasingly difficult for putin to find his brutal roar in the face of a shrinking russian economy and its isolation in the global stage. We must maintain the pressure of our many sanctions, regimes, we must keep the coalition intact, theres so much of russias revenue coming from energy sales, i look forward to hearing more from the Witnesses Today about the impact and status have the price gap negotiations. Just last week, i met with a group of ukrainian americans from ohio, my state is proud to have a vibrant ukrainian community. Their match is which clear, we cannot lose the momentum. We must continue to hold the russian government and sanctions the Multilateral Coalition with President Biden adeptly stumbled rolled out a sweeping series of rules designed to degrade russias military and technological capabilities. We will not let up on russia continues to threaten the sovereignty of ukraine,. Thank you, mister chairman, thank you to our witnesses. Last week, Ukrainian Forces recaptured the town of izium and eastern ukraine. It had been occupied by russian soldiers for six months. In the streets overjoyed and carefully residents celebrated their liberation, in a forest just outside, town the horrors of russias invasion were once again revealed. Ukrainian soldiers discovered a mass grave filled with hundreds of civilians. Many of these victims are believed to have been tortured, bound, assaulted and murdered. Not unlike the horrors that occurred in bucha in april. Our government has rightly said such atrocities committed by the russians are war crimes identifying and prosecuting these war crime its crucial. Lets be clear, these crimes will continue unless we can fourth flatten your putin and those around him into concluding to abandon the invasion, and to conclude that abandoning the invasion is better than continuing. Ending this war on terms acceptable to ukraines democratic government is not just a morally righteous undertaking for the United States, it is also in the vital interest of our allies and ourselves, the outcome will have ramifications far beyond ukraine, we cannot allow revisionist autocrats to feel free to redraw International Borders and fundamentally challenged global stability the principles of sovereignty and freedom must mean something. Even when facing down the barrel of a gun. The stakes are high in europe, with the United States has deep and longstanding security commitments, and they reach as far as asia where the Chinese Government is taking note of how the u. S. And its allies respond to russias invasion if its smaller neighbor. Today, this committee will examine the existing sanctions that the u. S. Allies will bear on the kremlin honors of asian of ukraine, on the outcome of the war, it will be determined on the battlefield, sanctions have the potential to dramatically hasten and end to the conflict by depriving the kremlin of the funds in needs to continue this war. Lets be honest, the sanctions imposed on russia thus far have not yet come remotely close to achieving this objective, roughly one billion dollars in hard currency continues to flow into the kremlins war chest every day from energy sales. Treasury deputy secretary recently acknowledged and, i quote, there is one part of the russian economy doing even better than when the war began, their oil industry. And quote. By the way, russias gas industry is doing equally well. Gazprom recently announced record profits of over 40 billion dollars. Record profits. The first part of this year. Todays hearing will focus on the administrations plan for a novel sanctions regime then post price caps on the purchase of russian oil. This is an intriguing idea. I hope it will be the premise of the idea is simple, Service Providers such as financiers insurers within the g7 will only be permitted to facilitate the purchase of russian oil below the set cap price. Given that the vast majority of such Service Providers are in fact domicile in g7 countries, this plan has the potential to significantly curtail russian oil revenue. Several questions remain about this program including, how lower the price cap beset. What will enforcement of the cap look like. How will the administration ensure that buyers and countries like china and india do not escort the price cap for their own game. This last question is arguably the most important to determining the effectiveness of this price cap regime. Because it is so important, senator, van hollen i prior to introduce legislation that will compliment the price cap scheme and impose mandatory sanctions on any foreign Financial Institutions worldwide involved with any transaction and russian oil above the price cap, the legislation will be the first major bipartisan sanction legislation that has been introduced on russia since february. I intend to work with senator van hollen to get this bill and acted as soon as possible so russia can no longer profit from the oil sales finding its war in ukraine. Seven months after putin began his special operation, as he put, sits in ukraine, we ukrainians have conducted a remarkably Successful Campaign to liberate portions of the country from russian control, concerns harbored by china and india about putins war have been aired publicly and gas prices in europe are actually falling down 45 since late august. Who is not going as planned for putin. I saved my colleagues, now is at the time for half measures are complacency. It is time to crush the kremlin s ability to continue this war. Thank you, mister chairman. Thank you senator, i will introduce todays witnesses, to elizabeth rest and financial crimes and treasury welcome, back to committee as assistant secretary, she is responsible for leveraging the Treasury Department tools to target threats to National Security and safeguarding the Financial System from abuse. We also welcome andrew adams, director of the clapped clasp capture task force at doj, test force at enraged Law Enforcement a desert led by justice prosecutors and dedicated to enforcing the sweeping sanctions and response to russias unprovoked military evasion former federal prosecutor in new york. Assistant secretary rosenberg, please begin. Chairman browned, Ranking Member to meet, and the statement of the committee, thank you for the opportunity to speak to you today about the department of treasurys efforts to hold russia accountable for its brutal and unjustified further invasion of ukraine. The u. S. Department the treasury is working with Administration Partners including my colleague from the department of justice who, i am joined with today to implement the u. S. Governments holistic response to putins war. Since the further invasion began six months ago we have been advancing President Bidens promised to squeeze russias access to finance and technology for strategic sectors of its economy and degrade its industrial capacity for years to come. Just last week, we are posting chose to further degrade russias military, while perpetrators of this war accountable and financially isolate putin, to date treasury has sanctioned has dreads of russian individuals and entities and this includes a majority of russias Financial Institutions, them Industrial Supply chain, and the oligarchy not perpetuate putins war. The United States has been joined by over 30 countries, collectively representing more than half of the Global Economy and imposing sanctions, the largest sanctions regime and modern history. On the other side, russias propagandist have been aggressively attempting to bury any unfavorable news and push misinformation, saying that, for example, sanctions are not working and cause Food Insecurity. In fact, russia has crippled ukraines forming an export economy and dramatically driven up Global Energy and green prices. The u. S. And partner economic responses to russias war have head and will continue to have a significant effect on russias ability to fund its war. Russia has been forced to imposed a coating in capital controls, the imf expects russias economy will contract for at least the next two years. Sharp reversal from its 4. 7 growth in 2021. The russians dark markets that 35 below pre war levels. Russias unsustainably burning through its rainy day funds, moving towards fiscal deficit by years end. Simply put, russias economic picture is bleak and deteriorating. Significantly, these economic constraints are translating into real battlefield difficulties of her russia. Struggling to import industrial goods and technology, russia has been forced to turn to outdated equipment and approach global prices like north korea and iran to source material. Because russia is a sizeable economy, and globally Important Energy producer, and posing financial cost while mitigating the response has required extraordinary planning, coordination, economic analysis, diplomacy, and created policymaking. We have been keenly focused on russias large volume oil experts and windfall earnings in a high energy price environment. At this point, this represents russias primary source of hard currency. Given the Global Nature of oil markets, elevated Energy Prices affect us all, including american households that have seen rising prices at the pump and Inflationary Pressure across the economy. High Energy Prices hit the poorest the hardest in our country and across the world. Our effort, alongside an International Coalition to start with the g7 to impose a price gap on maritime Russian Oil Exports is the most viable option to support the security and affordability of the global oil supply. And involves price cap priced below the cap and refraining to do so from oil priced above the cap. The majority of providers, like insurance, payments, strayed finances are located within the g7 and eu countries. So, there is an overwhelming economic incentive for buyers to purchase under the price cap so that they can engage the services. It will be cheaper and less risky to move russian oil car goes in this way, we are already seeing this policy were, with russia forced to negotiate steep discounts for oil itself to buyers in asia. To close, id like to express my gratitude for the additional resources, that congress has provided in the appropriations package which helps as a treasury and across the u. S. Government surge in the policy response to russias war and critically, the support the people of ukraine. Id be happy to answer any further questions you have in the setting and you continue to work with you on the future. Director adams . I appreciate the opportunity to appear before you today on behalf of United States department of justice in my capacity as director of the departments russian sanctions test force, kleptocapture, to discuss the important work of the task force in response to russias unprovoked illegal and brutal war of aggression in ukraine. The atrocity committed have been well publicized, russian attacks have devastated ukrainian cities, leaving some on the verge of humanitarian collapse. Estimates are that as many as 1. 6 million ukrainians have been interrogated, detained, forcibly deported to russia under the oversight of russian officials. Numerous news reports of the details of the rational campaigns against ukrainians includes a program of torture and rape reporting that, tragically, find supports in the and devastation uncovered in the wake of russias retreat from the recent ukrainian counter offensive. This is why the work of the task force is so important. Our targets have and continue to profit from a system of corruption and violence. They continue to sustain and enable that same corrupt and violent regime, their willingness to facilitate and acquiesce in russias malign activities contributes to the death and destruction that we are witnessing in ukraine. The task force is dedicated to enforcing the sanctions, export restrictions an economic countermeasures that the United States has imposed along with its International Allies and partners in response to this unprovoked military invasion. It dries on the expertise of and an energy of agents, analysts, translators and prosecutors throughout the department and throughout the u. S. Government, including prominently our colleagues at the Treasury Department. Our goals are to bring charges against any individuals or entity, orlimited through Congress Department rulemaking rolled out in response to russian aggression. With respect to people and entities on those list, we will pursue any charge or seizure theory available. Sanctions of asia and Money Laundering are obvious charges and theories in this space, if opportunities to bring charges on blank rod, visa fraud, extortion, or any other federal crime are presented as to a listed person or entity, that is a charge that this task force will support and pursue. Second, we would target those who would facilitate the evasion of economic sanctions and the commerce departments export controls. Who begs, real estate agents, brokered dealers, exporters, manufacturers, shippi