[Congressional Record Volume 170, Number 178 (Tuesday, December 3, 2024)]
[House]
[Pages H6214-H6216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROTECTING AMERICANS FROM RUSSIAN LITIGATION ACT OF 2024
Mr. HUNT. 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.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 9563
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Americans from
Russian Litigation Act of 2024''.
SEC. 2. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to ensure that United States persons are not
disadvantaged for actions or omissions undertaken to comply
with United States sanctions and export controls; and
(2) to ensure that foreign persons, or those acting on
their behalf, cannot obtain compensation for any action
directly or indirectly related to United States persons
attempting in good faith to comply with their obligations
under United States sanctions.
SEC. 3. LIMITATION ON CIVIL ACTIONS AFFECTED BY UNITED STATES
SANCTIONS.
(a) In General.--Chapter 111 of title 28, United States
Code, is amended by adding at the end the following:
``Sec. 1660. Limitation on civil actions affected by United
States sanctions
``(a) Limitation.--Notwithstanding any provision of law, a
person may not bring a civil action in Federal court to
obtain relief for a claim where--
``(1) the underlying conduct or circumstances giving rise
to the claim resulted from the imposition of United States
sanctions impeding the performance of a contract (whether
directly or indirectly, or in whole or in part); and
``(2) the United States sanctions described in paragraph
(1) went into effect after the date on which the contract was
executed.
``(b) Rule of Construction.--Nothing in this section may be
construed to limit--
``(1) the authority of the President, or any delegate of
the President (including the Office of Foreign Asset Control
of the Department of the Treasury), to restrict or authorize
legal services, to enter into a settlement agreement, or to
enforce any lien, judgment, arbitral award, decree, or other
order through execution, garnishment, or other judicial
process; or
``(2) any right, remedy, or cause of action available to a
victim of international terrorism, torture, extrajudicial
killing, aircraft sabotage, or hostage taking, who is, or
[[Page H6215]]
was at the time of the victim's injury, a national of the
United States, a member of the United States Armed Forces, an
employee of the United States Government, or an individual
performing a contract awarded by the United States Government
acting within the scope of their employment, or a family
member of any such victim, under any applicable State or
Federal law, including--
``(A) chapter 97 of this title;
``(B) chapter 113B of title 18; and
``(C) the Iran Threat Reduction and Syria Human Rights Act
of 2012 (22 U.S.C. 8701 et seq.), and any other laws
providing for the application of sanctions with respect to
Iran or Syria.
``(c) United States Sanctions Defined.--In this section,
the term `United States sanctions' means any prohibition,
restriction, or condition on transactions involving property
in which any foreign country or national thereof has an
interest that is imposed by the United States to address
threats to the national security, foreign policy, or economy
of the United States pursuant to--
``(1) section 203 of the International Emergency Economic
Powers Act (50 U.S.C. 1702); or
``(2) any other provision of law, including any export
controls.''.
The SPEAKER pro tempore (Mrs. Miller of West Virginia). Pursuant to
the rule, the gentleman from Texas (Mr. Hunt) and the gentleman from
Georgia (Mr. Johnson) each will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. HUNT. 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.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. HUNT. 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.
Mr. JOHNSON of Georgia. 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
H.R. 9563.
Madam Speaker, I reserve the balance of my time.
Mr. HUNT. Madam Speaker, I am prepared to close, and I reserve the
balance of my time.
Mr. JOHNSON of Georgia. Madam Speaker, I yield 3 minutes to the
gentleman from Maryland (Mr. Ivey), my friend.
Mr. IVEY. 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
[[Page H6216]]
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.
Mr. JOHNSON of Georgia. 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.
Mr. HUNT. 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.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Hunt) that the House suspend the rules and
pass the bill, H.R. 9563.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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