Waukesha Times

Congressman Scott Fitzgerald (WI-05) has co-introduced the Protecting American Businesses from Russian Litigation Act of 2024, aimed at shielding American businesses from frivolous lawsuits initiated by Russian entities. The bill seeks to close a loophole in federal law by amending Chapter 111 of Title 28 of the United States Code, ensuring that U.S. persons are protected from litigation resulting 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.

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. Consequently, these companies have been targeted by Russian litigants seeking damages and being awarded large claims by Russian courts against them. These decisions are then used as a basis for Russian litigants to seek significant damages under U.S. law, effectively functioning as countersanctions.

The Protecting American Businesses from Russian Litigation Act of 2024 aims to protect American companies so they are not subject to litigation for complying with U.S. sanctions and export controls.