He passed his examination on 2 December 1772, being then described in his certificate as
"more than 32." During a cruise off
Chesapeake Bay, Russell engaged and fought the 16-gun
privateer Lady Washington. She was captured and sold for £26,000, of which, as captain, Russell was entitled to two-eighths in
prize money. On his return to England he was appointed to the , under Captain
James Gambier, afterwards Lord Gambier, and was present at the relief of
Jersey in May 1779,. Briefly Russell was placed in command of
Drake's Island lying in
Plymouth Sound as a reward for his services on Jersey. At Charlestown Russell was promoted by Arbuthnot on 11 May 1780 to the command of sloop , from which, on 7 May 1781, he was promoted
post-captain and put in command of the
third-rate . Apparently this was for rank only, Kergarou came aboard the
Hussar to surrender his sword. the Count handed Russell his sword and complemented the Captain and his crew on the capture of his vessel. Russell took the sword and reportedly said: "Sir, I must humbly beg leave to decline any compliments to this ship, her officers, or company, as I cannot return them. She is indeed no more than a British ship of her class should be. She had not fair play; but Almighty God has saved her from the most foul snare of the most perfidious enemy. - Had you, Sir, fought me fairly, I should, if I know my own heart, receive your sword with a tear of sympathy. From you, Sir, I receive it with inexpressible contempt. And now, Sir, you will please observe, that lest this sword should ever defile the hand of any honest French or English officer, I here, in the most formal and public manner, break it." Russell stuck the blade into the deck and broke the blade in half and threw it to the deck. He placed the Count under close arrest. The crew of the
Hussar discovered £500 in valuables aboard the
Sybille, which the French officers claimed as theirs and Russell permitted them to keep even though it would have reduced his and his crew's prize money. When Russell brought the prize into
New York City he reported the circumstance, and his officers swore an
affidavit in support of their captain. The
Treaty of Paris was then on the point of being concluded, and in consequence the
Admiralty Board and British government thought the affair would cause undue scandal and kept the official account from the general public and did not publish Russell's letter. Kergariou sent his subordinate, the
Chevalier d'Ecures to see Russell. He threatened that when he should be released, he would, through influence at the
French Court, acquire another ship and would obtain the requisite orders he needed to hunt down and capture Russell in retaliation if Russell reported the incident. When Russell failed to be moved, the Count, again through his subordinate issued a challenge to Russell to demand personal satisfaction. Russell considered the challenge and returned with the answer to the Chevalier: "Sir I have considered your challenge maturely...I will fight him, by land or by water, on foot or on horseback, in any part of this globe that he pleases. You will, I suppose, be his second; and I shall be attended by a friend worthy of your sword." On the declaration of peace,
Hussar returned to England for decommissioning, and Russell was offered a
knighthood, which he refused, as his income would not have been enough to support the title. Russell was informed that Kregarou had been tried and acquitted of the loss of his ship and the breach of internationally recognised laws and applied to the Admiralty for permission to travel to France. Admiral Arbuthnot accompanied him as his second. Kregarou wrote to Russell and expressed his gratitude of the treatment that he and his crew had received from Russell after they had been captured and informing Russell that he intended to move to the
Pyrenees. Arbuthnot convinced Russell that he should not follow the Count but return to England. Russell returned to England and remained unemployed until 1791. ==Command in the West Indies==