WASHINGTON, DC – Congressman Scott Fitzgerald (WI-05) co-introduced the Protecting American Businesses from Russian Litigation Act of 2024 to shield American businesses from frivolous Russian lawfare. The bill closes an existing loophole in federal law and amends Chapter 111 of Title 28 of the United States Code to ensure that U.S. persons are protected from lawsuits that result from good faith compliance with U.S. sanctions and export controls.
“Following Putin’s invasion into Ukraine, Russia has waged an aggressive campaign against American companies that withdrew their services from the country to comply with U.S. imposed sanctions designed to weaken the regime. Russian courts have wrongly awarded large claims against these companies, and Russian litigants have used these decisions as evidence to sue in U.S. Federal courts. This is wrong. Wisconsin businesses who distribute internationally should not be punished for good-faith compliance with U.S. sanctions. That’s why I’m proud to cosponsor the Protecting Americans from Russian Litigation Act, which will amend U.S. Code to shield U.S. persons from frivolous lawsuits for good faith compliance with U.S. sanctions and export controls,” said Rep. Fitzgerald.
BACKGROUND: In response to Russia’s February 2022 invasion of Ukraine, the U.S. government imposed sanctions and export controls on Russia. To comply with these measures, U.S. companies wound down operations and ceased work in Russia. As a result, U.S. companies have been targeted by Russian litigants seeking damages and being awarded large and inflated claims by Russian courts against U.S. companies. These subjective decisions are then used as the basis for Russian litigants to seek significant damages under U.S. law – essentially functioning as a countersanction for Russia.
American companies shouldn’t be punished for simply complying with U.S. sanctions and export controls. The Protecting American Businesses from Russian Litigation Act of 2024 will protect American companies and their interests so that they are not subject to litigation for good faith compliance with U.S. sanctions and export controls.
