116 STAT. 1446 PUBLIC LAW 107-228—SEPT. 30, 2002 section 1314 will be used to promote the nonproliferation of weapons of mass destruction and the means of delivering such weapons. An agreement entered into under this section may be referred to as the "Russian Federation Nonproliferation Investment Agreement". President. (2) CONGRESSIONAL NOTIFICATION. —The President shall notify the appropriate congressional committees at least 15 days in advance of the United States entering into a Russian Federation Nonproliferation Investment Agreement. (b) CONTENT OF THE AGREEMENT. — The Russian Federation Nonproliferation Investment Agreement shall ensure that— (1) an amount equal to the value of the debt reduced pursuant to this subtitle will be made available by the Russian Federation for agreed nonproliferation programs and projects; (2) each program or project funded pursuant to the Agreement will be approved by the President; (3) the administration and oversight of nonproliferation programs and projects will incorporate best practices from established threat reduction and nonproliferation assistance programs; (4) each program or project funded pursuant to the Agreement will be subject to monitoring and audits conducted by or for the United States Government to confirm that agreed funds are expended on agreed projects and meet agreed targets and benchmarks; (5) unobligated funds for investments pursuant to the Agreement will not be diverted to other purposes; (6) funds allocated to programs and projects pursuant to the Agreement will not be subject to any taxation by the Russian Federation; (7) all matters relating to the intellectual property rights and legal liabilities of United States firms in any project will be agreed upon before the expenditure of funds would be authorized for that project; and (8) not less than 75 percent of the funds made available for each nonproliferation program or project under the Agreement will be spent in the Russian Federation. (c) USE OF EXISTING MECHANISMS. —It is the sense of Congress that, to the extent practicable, the boards and administrative mechanisms of existing threat reduction and nonproliferation programs should be used in the administration and oversight of programs and projects under the Agreement. (d) JOINT AUDITING. —It is the sense of Congress that the United States and the Russian Federation should consider commissioning the United States General Accounting Office and the Russian Chamber of Accounts to conduct joint audits to ensure that the funds saved by the Russian Federation as a result of any debt reduction are used exclusively, efficiently, and effectively to implement agreed programs or projects pursuant to the Agreement. (e) STRUCTURE OF THE AGREEMENT.— It is the sense of Congress that the Agreement should provide for significant penalties— (1) if funds obligated for approved programs or projects are determined to have been misappropriated; and (2) if the President is unable to make the certification required by section 1317(a) for two consecutive years.
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