Russia Starts Revenge, Freezes Assets of Largest US Bank

MOSCOW – A St Petersburg court ordered the freezing of funds belonging to the United States (US) banking giant JPMorgan Chase in Russia last Wednesday.

The decision was in retaliation by Moscow and in support of Russia’s second-largest bank, VTB, which has filed a lawsuit to recover $439.5 million blocked abroad under US-led sanctions.

VTB sued JPMorgan and its subsidiaries in the Arbitration Court of St. Petersburg and the Leningrad Region on April 17, according to a court filing on Monday.

The court order targets funds in JPMorgan accounts in Russia as well as “movable and immovable property,” including the bank’s stake in a Russian subsidiary.

The dispute centers on $439.5 million that VTB held in a JPMorgan account in the US, which was blocked by Washington as part of sanctions related to Russia’s war in Ukraine since 2022.

A St Petersburg court ordered the seizure of all funds in JPMorgan’s Russian bank accounts, including correspondent accounts and those opened in the names of subsidiaries.

Quoting the report Russia TodayFriday (26/4/2024), VTB has requested temporary measures as the respondents or defendants take action to withdraw their assets from Russia, while the Russian bank seeks to recover money from the US bank.

In its own lawsuit against VTB last week in the Southern District of New York, JPMorgan sought to block the Russian bank’s efforts, arguing that U.S. law prohibits the bank from releasing $439.5 million in funds held by VTB.

According to Reutersciting US lender JPMorgan is concerned that VTB will try to seize its assets in Russia.

Wall Street banks admit to Reuters that VTB’s prospects are good, as Russian courts have granted at least six waivers to other local lenders against US and European Union banks required to comply with sanctions laws.

The next hearing in the JPMorgan case is scheduled for July 17, 2024.

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