Protecting Americans from Russian Litigation Act of 2024

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 9563) to amend title 28, United States Code, to limit the availability of civil actions affected by United States sanctions, and for other purposes.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and insert extraneous material on H.R. 9563.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise in strong support for H.R. 9563, the Protecting Americans from Russian Litigation Act of 2024.

The Protecting Americans from Russian Litigation Act is simple. It is about protecting American businesses that are being unfairly punished by our adversaries.

U.S. sanctions are a vital tool of American foreign policy that safeguard peace and security, but there are times when U.S. sanctions can put American businesses in difficult situations. A U.S. business that sells goods in Russia, for example, may no longer be able to fulfill orders or complete contracts because of said sanctions.

In such sanctions, their Russian customers have been known to go to Russian courts for breach of contract or other claims. Suffice it to say, American businesses aren't likely to be treated fairly in a Russian court these days.

Russia is engaging in frivolous legal action against American companies because they divested out of their country after they invaded Ukraine.

Whether it is Russia, China, Iran, or any of America's adversaries, we have an obligation to protect America's interests and America's businesses at home and abroad. This bill would protect U.S. businesses and ensure that they are not unfairly punished for simply complying with U.S. sanctions and export controls. Similar provisions protect European companies in the EU courts, and it is high time that Americans get the same protections.

That is why this bill is so important in protecting American companies from unfair litigation. It will provide protection for U.S. companies by barring civil action against those who are forced to breach a contract because of compliance with U.S. sanctions and export controls. American companies shouldn't be forced to pay penalties for doing the right thing and complying with U.S. law.

Madam Speaker, I am proud to co-lead the Protecting Americans from Russian Litigation Act of 2024 with my colleague from Maryland, Mr. Glenn Ivey. I am also honored to have my fellow Judiciary Committee colleagues, Jerry Nadler, Darrell Issa, Scott Fitzgerald, Hank Johnson, and Laurel Lee, join as original cosponsors.

Protecting our businesses from being targeted by adversaries is not a partisan issue, which is why this bill passed the Judiciary Committee with bipartisan support on a voice vote. This bill proves that even in a divided Congress, we can still work across the aisle in a bipartisan manner on the issues that matter to the United States the most.

Madam Speaker, I urge my colleagues to support H.R. 9563. I commend all the bill's sponsors and the Judiciary Committee for their hard work on this important bill, and I reserve the balance of my time.

Madam Speaker, I am prepared to close, and I reserve the balance of my time.

Madam Speaker, I thank my friend, Congressman Ivey, for cosponsoring this bill with me.

This is about putting the priorities of the American public first, and it is about protecting the companies in this country that have done the right thing because of the sanctions that we have placed on Russia.

Madam Speaker, I urge all of my colleagues to support this bill, and I yield back the balance of my time.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, H.R. 9563, the Protecting Americans from Russian Litigation Act of 2024, is targeted legislation to eliminate a loophole in U.S. law that could allow Russian companies to take advantage of Americans in the United States Federal court system.

Under the Biden-Harris administration, the United States has sanctioned thousands of Russians and Russian entities. Agencies across our government, including but not limited to the United States Treasury, the Department of Commerce, and the Office of Foreign Assets Control have worked to make foreign aggression unaffordable for the Russian war machine.

Sanctioned Russian entities, for the most part, have little recourse. A Russian company, for example, cannot physically force U.S. software companies to license platforms or provide them with IT services.

In some limited situations, however, sanctioned Russian entities could bring suit in the United States Federal court system. The legislation before us today would close that loophole.

H.R. 9563 amends title 28 of the United States Code to ensure that U.S. individuals cannot be sued for good faith efforts to comply with U.S. sanctions and export controls. Good faith compliance can include refusal to perform on a purchase contract, the revocation of software credentials, or the freezing of funds of a sanctioned entity, to name a few.

For example, under this provision, a Russian diamond mine could not sue an American company in Federal court for refusing to honor an importation contract because the U.S. issued diamond sanctions in March 2022.

Our businesses here at home should not be open to liability for complying with the law, but that is exactly what happened to J.P. Morgan earlier this year.

Throughout 2024, J.P. Morgan has been embroiled in U.S. and Russian lawsuits with Russian bank VTB for complying with U.S. sanctions related to the war in Ukraine.

I recognize there are some in this country who have praised Russia for its aggression, who have suggested that we should no longer provide aid to our ally Ukraine. As Russia's war continues unabated, however, it is important we remember that Russia's aggression is a destabilizing force in the region. An emboldened Russia, bolstered by North Korean military aid, represents a clear threat to the United States' interests abroad and to our NATO allies. We should not reward their behavior by letting them take advantage of U.S. companies in our courts.

Madam Speaker, I thank my friends, Congressman Hunt and Congressman Ivey, for their work on this bill. I am glad to join them as a cosponsor in this legislation, and I encourage my colleagues to support

Madam Speaker, I yield 3 minutes to the gentleman from Maryland (Mr. Ivey), my friend.

Madam Speaker, Russian companies should not be able to use U.S. Federal law to punish U.S. entities for good faith compliance with American sanctions.

H.R. 9563 would ensure that Russia and Russian entities cannot exploit loopholes in our laws to punish United States businesses.

Because of the ongoing threat posed by Russia, U.S. sanctions are as important today as they were when the war began nearly 3 years ago. Making compliance easier on American companies is an important way to ensure the U.S. remains strong in its resolve to defend and support Ukraine.

Madam Speaker, I urge all Members to support the bill, and I yield back the balance of my time.

Madam Speaker, I thank the gentleman for yielding.

Madam Speaker, I rise in strong support of H.R. 9563, the Protecting Americans from Russian Litigation Act.

I am proud to partner with my co-lead and my friend from Texas, Congressman Wesley Hunt, on this important legislation.

I also thank Ranking Member Nadler and Representatives Issa, Fitzgerald, Lee, and Johnson for their support, as well.

In response to Putin's invasion of Ukraine in February 2022, the United States imposed numerous sanctions and export controls on Russia.

The Protecting Americans from Russian Litigation Act would protect American companies that are targeted by Russian litigants seeking damages resulting from good faith compliance with these sanctions.

Unlike the United Kingdom and the European Union, the U.S. Federal law

does not currently protect companies complying with U.S. sanctions and export controls from litigation. Because of this, some Russian entities subjected to sanctions have sued American companies in Russian courts, resulting in significant financial penalties to American businesses in certain cases.

This bill would prevent Russian entities from seeking relief for these claims in Federal court, thereby ensuring American companies are not punished for their good faith compliance with U.S. sanctions.

Additionally, this bill does not interfere with or limit the rights, remedies, or causes of action available to victims of international terrorism.

This commonsense legislation would protect American companies and ensure Russia is held accountable for its illegal invasion of Ukraine.

Madam Speaker, I urge my colleagues on both sides of the aisle to support passage of this bill.