S2934-119

What This Bill Does

The Protecting Americans from Russian Litigation Act of 2025 prevents foreign persons from using U.S. courts to enforce foreign judgments or arbitral awards that arise because a U.S. person complied with U.S. sanctions or export controls. It is aimed at situations where sanctions make contract performance impossible or where a foreign court or tribunal asserted jurisdiction based on U.S. sanctions, export controls, or foreign laws reacting to those controls.

The bill adds a new Section 1660 to Chapter 111 of title 28. Covered enforcement actions can be removed by defendants to federal district court, and the federal court must dismiss them. The policy statement makes clear that U.S. persons should not be disadvantaged for good-faith compliance with U.S. sanctions or export controls.

Who Benefits and How

U.S. companies, U.S. exporters, financial institutions, defense contractors, logistics firms, and other United States persons benefit because foreign counterparties cannot use U.S. courts to collect covered foreign judgments tied to sanctions compliance. Federal courts benefit from a clear removal-and-dismissal rule rather than case-by-case uncertainty.

Who Bears the Burden and How

Foreign judgment creditors, Russian counterparties, foreign arbitral award holders, and foreign persons suing over sanctions-disrupted contracts lose an enforcement path in U.S. courts. Federal courts must process removals and dismiss covered actions. Contract counterparties in sanctioned jurisdictions bear litigation risk when their claims depend on conduct required by U.S. sanctions or export controls.

Key Provisions

• Establishes U.S. policy that sanctions-compliant U.S. persons should not be disadvantaged.
• Prohibits enforcement in U.S. courts of covered foreign judgments or arbitral awards.
• Restricts covered arbitral-award enforcement when claims arise from U.S. sanctions or export controls.
• Allows defendants to remove covered enforcement actions to federal district court.
• Requires federal courts to dismiss covered actions after removal.