March 09, 2022

Chairs DeFazio and Titus Write to GSA Regarding Their Process for Determining Applicability of Recent Economic Sanctions

WASHINGTON, D.C. – Today, Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-OR) and Chair of the Subcommittee on Economic Development, Public Buildings, and Emergency Management Dina Titus (D-NV) asked the General Services Administration (GSA) to explain its process for ensuring its real estate leasing activities comply with the recently-imposed sanctions in response to Russia’s unprovoked invasion of Ukraine.

“We request an explanation of GSA’s process to determine the applicability of any such sanctions to its real estate activities,” the members wrote in today’s letter. “Further, we would like GSA to explain what established processes or new measures GSA is taking to abide by all applicable sanctions as a general matter in its real estate activities.”

Read the full letter here and below:

March 9, 2022

 

The Honorable Robin Carnahan

Administrator

General Services Administration (GSA)

1800 F Street, NW
Washington, DC 20405

 

Dear Administrator Carnahan:

The United States has recently imposed expanded sanctions in response to Russia’s unprovoked invasion of Ukraine.[1] These sanctions add to existing layers of sanctions imposed in recent years related to Russian malfeasance by both Democratic and Republican administrations.[2] 

We request an explanation of GSA’s process to determine the applicability of any such sanctions to its real estate activities, including but not limited to its lease of the Old Post Office building in Washington, D.C.– the pending sale of which is currently under review by GSA.  Further, we would like GSA to explain what established processes or new measures GSA is taking to abide by all applicable sanctions as a general matter in its real estate activities.  For example, how does GSA determine that no one from the Specifically Designated Nationals and Blocked Persons List of the Treasury Department’s Office of Foreign Asset Control is involved in the purchase of the Old Post Office building?[3]

As you know, the Old Post Office lease is, “…governed by the federal laws of the United States of America…” and therefore it would seem apparent that any outlease sale involving the Old Post Office would have to be verified to comply with United States sanctions.[4]

We would appreciate your response by March 16, 2022.  Thank you for your timely attention to this important matter.

Sincerely,

PETER A. DeFAZIO   

Chair

DINA TITUS                                                                                                    

Chair

Subcommittee on Economic Development, Public Buildings, and Emergency Management

 

cc:        The Honorable Sam Graves, Ranking Member

            Committee on Transportation & Infrastructure

 

            The Honorable Daniel Webster, Ranking Member

            Subcommittee on Economic Development,

            Public Buildings, and Emergency Management

 

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[1] For example, U.S. Dept. of the Treasury, “Treasury Sanctions Russians Bankrolling Putin and Russia-Backed Influence Actors,” (March 3, 2022), accessed here: https://home.treasury.gov/news/press-releases/jy0628.

[2] Executive Order 14024, “Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation,” 86 Fed. Reg. 73, 20249 (April 19, 2021), accessed here: https://home.treasury.gov/system/files/126/14024.pdf; U.S. Dept. of Treasury, “Treasury Designates Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity,” (April 6, 2018), accessed here: https://home.treasury.gov/news/press-releases/sm0338; see generally, CRS, “U.S. Sanctions on Russia” (updated Jan. 18, 2022), accessed here: https://sgp.fas.org/crs/row/R45415.pdf.

[3] U.S. Dept. of the Treasury, “Specially Designated Nationals and Blocked Persons List (SDN) Human Readable List (updated March 7, 2002), accessed here: https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists

[4] General Services Administration, Ground Lease, By and Between The United States of America (as “Landlord”) and Trump Old Post Office LLC (as “Tenant”) (GS-LS-11-1307), Section 37.2 (Aug. 5, 2013), 97.  Accessed here: https://www.gsa.gov/reference/freedom-of-information-act-foia/electronic-reading-room at “Ground lease Segment One part 2.”