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Posted on: August 18, 2023

Enforcement of Russia-Belarus Law Temporarily Suspended

A recent legal challenge has caused State officials to temporarily halt the enforcement of the law prohibiting government dealings with businesses associated with Russia and Belarus. 

On August 4, the United States District Court for the District of New Jersey issued a temporary restraining order (TRO), enjoining the state from enforcing N.J.S.A. 52:32-60.1 against a company on the grounds that the statute is likely inconsistent with federal law. 

N.J.S.A. 52:32-60.1 requires the Department of the Treasury to establish a list of persons and entities engaging in prohibited activities in Russia or Belarus and to update that list every six months. The law also prohibits the State from engaging in certain activities with a person or entity identified on the list as engaged in prohibited activities or whose subsidiaries, parents, or affiliates are so engaged. Local contracting units are also subject to the law and prohibited from contracting with those persons or entities appearing on the Treasury’s list. 

While the TRO issued by the court is applicable only to the named company filing suit, the state has made the decision to voluntarily apply the terms of the TRO to all persons and entities until further order of the court.

The Division of Local Government Services issued an EGG notice which echoes the Treasury’s notice. We suggest you review this information with your procurement officials and municipal attorney. 

Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137. 

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