The legislation empowers the President to certify that Azerbaijan has engaged in hostile actions against Armenia and, upon certification, to impose comprehensive sanctions on identified individuals and entities. Sanctions include blocking property, revoking visas, and prohibiting transactions for senior Azerbaijani officials, their families, military units, and foreign persons who aid such actions. The act also extends sanctions to foreign financial institutions that facilitate petroleum trade with Azerbaijan, with a 60‑day delay after certification. Exceptions are carved out for humanitarian aid, agricultural commodities, and certain intelligence activities, and the President may waive sanctions in the national interest. The bill mandates the President to report to Congress within 30 days of enactment and every 90 days thereafter on Azerbaijan’s conduct. Sanctions can be terminated when a sanctioned party demonstrates a year of genuine disengagement from hostile activities and poses no substantial risk, and the President may release previously blocked funds to Azerbaijan under specified conditions. The act requires the President to submit reports on terminations and fund releases within 15 days, and to conduct an annual review of sanctions effectiveness. A sunset clause ends all provisions seven years after enactment, ensuring the measures are time‑limited. The legislation includes a severability clause so that invalid portions do not affect the rest of the act. Overall, the bill seeks to deter further aggression while encouraging a negotiated peace between Armenia and Azerbaijan.