Padilla, Cornyn Bill to Protect Americans From Russian Litigation Unanimously Passes Senate

WASHINGTON, D.C. - Today, U.S. Senators Alex Padilla (D-Calif.) and John Cornyn (R-Texas) announced that the Senate unanimously passed their Protecting Americans from Russian Litigation Act. The bipartisan legislation would protect American companies that have been unfairly targeted in foreign jurisdictions, particularly Russian courts, for their good faith compliance with U.S. sanctions and export controls following Russia's invasion of Ukraine.

"We will no longer allow Vladimir Putin to exploit American companies that comply with export controls and U.S. sanctions as he continues his unprovoked war against Ukraine," said Senator Padilla. "Safeguarding the effectiveness of our sanctions regime and protecting American companies from retaliation by Russian courts and other foreign adversaries is both essential to our national security and our business environment. I am proud to see this bipartisan solution advance out of the Senate to ensure American businesses are protected from legal harassment at home and abroad."

"American companies who rightfully stopped doing business in Russia following Putin's invasion of Ukraine should not be punished or subjected to Russian lawfare," said Senator Cornyn. "This legislation would close a legal loophole that has been abused by Russian courts to unfairly target American businesses for complying with U.S. sanctions meant to weaken Putin's war regime and ensure our corporations are not held liable for Russia's actions."

In response to Russia's February 2022 invasion of Ukraine, the United States imposed sanctions and export controls on Russia. Acting in compliance with these measures, U.S. companies have since wound down their operations and ceased work in Russia. As a result, numerous suits have been brought against U.S. companies in Russian courts, with some facing hundreds of millions of dollars in potential damages. Russian entities have subsequently sought to enforce these judgments in other jurisdictions. American businesses should not be punished for complying with U.S. sanctions and export controls. This legislation protects American businesses by ensuring that such retaliatory judgments cannot be enforced against them in U.S. courts or in international courts of arbitration.

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