Protecting Americans From Russian Litigation Act of 2024

Floor Speech

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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.

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

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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.

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