Preventing the Escalation of Armed Conflict in Europe Act of 2025; PEACE Act of 2025
Summary
The "Preventing the Escalation of Armed Conflict in Europe Act of 2025" (PEACE Act of 2025) aims to secure a peaceful resolution to the Russia-Ukraine conflict. It mandates the Secretary of the Treasury to impose sanctions on foreign financial institutions that provide significant financial services to entities involved in the Russian Federation's energy sector or those already sanctioned under existing Executive Orders and laws. The Act also requires a determination on whether Gazprom, Rosneft, and Lukoil fall under the sanctionable entities.
Expected Effects
If enacted, the PEACE Act would broaden the scope of financial sanctions against Russia by targeting institutions facilitating transactions with sanctioned entities. This could further isolate Russia financially, potentially limiting its ability to fund its military actions in Ukraine. The Act also includes a waiver provision, allowing the President to temporarily suspend sanctions under certain conditions.
Potential Benefits
- Potentially accelerates a peaceful resolution to the Russia-Ukraine conflict.
- Strengthens U.S. national security by countering Russian aggression.
- Reinforces international norms against destabilizing activities.
- May deter other nations from engaging in similar conflicts.
- Could stabilize European energy markets by reducing reliance on Russian energy.
Potential Disadvantages
- Potential for unintended economic consequences for U.S. allies and partners.
- May escalate tensions with Russia, leading to further instability.
- Could negatively impact global energy markets and prices.
- Risk of retaliatory measures from Russia.
- The waiver provision could be used to weaken the sanctions regime.
Constitutional Alignment
The Act aligns with the Constitution's broad grant of authority to Congress in matters of foreign policy and commerce. Article I, Section 8 grants Congress the power to regulate commerce with foreign nations and to declare war, implying the power to use economic sanctions as a tool of foreign policy. The Act's provisions for presidential waivers and reporting to Congress also reflect the system of checks and balances.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).