Protecting Americans from Russian Litigation Act of 2025

Bill Summary: Protecting Americans from Russian Litigation Act of 2025

Bill Number: S 2934

Session: 119th Congress

Jurisdiction: United States

Status: Reported by the Committee on the Judiciary (March 26, 2026)

Overview

The Protecting Americans from Russian Litigation Act of 2025 is designed to protect U.S. persons and entities from being penalized in domestic courts for complying with U.S. sanctions and export controls. The bill specifically aims to prevent foreign entities from using the U.S. court system to enforce foreign legal judgments or arbitration awards that were issued because a U.S. person refused to engage in activity prohibited by U.S. law.

Main Purpose and Intent

The core intent of this legislation is to ensure that U.S. citizens and companies are not "disadvantaged" for following federal law. In many cases, when a U.S. company ceases operations or terminates a contract to comply with U.S. sanctions, the foreign counterparty may sue them in a foreign court (such as in Russia) and obtain a judgment for breach of contract. This bill seeks to block those foreign judgments from being enforced within the United States.

Key Provisions

1. Limitation on Civil Actions

The bill amends Title 28 of the U.S. Code to prohibit any person (except the U.S. government) from bringing a civil action in Federal or State court to enforce a foreign judgment or arbitral award if:
* Sanctions Compliance: The underlying claim resulted from the U.S. person taking action to comply with U.S. sanctions, which consequently impeded the performance of a contract.
* Jurisdictional Basis: The foreign court or tribunal claimed jurisdiction based on the imposition of U.S. sanctions, export controls, or any foreign laws enacted in response to U.S. sanctions.

2. Procedural Protections

• Removal and Dismissal: If a lawsuit is filed to enforce such a foreign judgment, the defendant has the right to remove the case to a U.S. district court, which is then mandated to dismiss the action.

3. Important Exceptions

The bill does not limit the following:
* U.S. Government Authority: The President and the Office of Foreign Assets Control (OFAC) retain all powers to bring actions.
* Victims of Atrocities: Rights and remedies for victims of international terrorism, torture, extrajudicial killings, or hostage-taking remain unaffected.
* Domestic Agreements: The restriction does not apply to disputes where both parties explicitly agreed to resolve conflicts via litigation or arbitration specifically within the United States.
* General Domestic Claims: It does not block standard lawsuits arising under U.S. law, provided they are not attempts to enforce a prohibited foreign judgment.

Who is Affected?

• U.S. Businesses and Individuals: Entities that operate internationally and must navigate complex sanctions landscapes will be protected from "double jeopardy" (obeying U.S. law but being sued for it abroad).
• Foreign Entities/Nationals: Foreign parties seeking to collect damages in U.S. courts based on sanctions-related contract breaches will be barred from doing so.

Timeline and Application

• Effective Date: The bill applies to all civil actions pending on or after the date of enactment.
• Procedural Status: As of March 26, 2026, the bill has been reported favorably by the Senate Committee on the Judiciary and placed on the Legislative Calendar.