U.S. Senators propose sanctions on Nicaragua's gold and military

U.S. Senators Ted Cruz and Tim Kaine have introduced a bipartisan bill, S. 5369, titled the “Act to Restore Electoral Equity and Opposition Rights through 2026 Accountability Mandates.” The legislation seeks to drastically expand and extend economic sanctions against the administration of Daniel Ortega and Rosario Murillo in Nicaragua.

A primary focus of the proposal is the Nicaraguan gold sector, a major driver of the national economy. The bill would empower the U.S. Department of State and the Department of the Treasury to sanction any individual or entity operating in the gold industry. This move targets a critical source of foreign currency for the Managua government.

Additionally, the bill targets the financial arm of the Nicaraguan military, specifically officials within the Instituto de Previsión Social Militar (IPSM). The legislation also expands sanction criteria to include actors who finance or collaborate with the governments of Russia and Iran, as well as those involved in the repression of political dissidents and Catholic Church leaders. These measures are proposed to remain in effect until 2035, unless a U.S. president certifies significant democratic progress, including supervised elections and independent human rights investigations.