- The court’s decision reportedly affects JPMorgan’s funds in various accounts, except for “Type C” accounts.
- The matter involves a lawsuit by VTB, which seeks to recover frozen assets following international sanctions.
A Russian court ordered the seizure of $155.8 million from JPMorgan Chase bank accounts in Russia. The move is part of an ongoing lawsuit by state-owned VTB Bank, which seeks damages related to funds blocked abroad following sanctions.
VTB, one of Russia’s largest state-owned banks, filed the case on October 7, seeking compensation from nine JPMorgan-related entities, including its Russian subsidiary, JPMorgan International.
According to Reuters, the Russian court ordered the seizure of JPMorgan’s funds in all currencies across various accounts, except for those in “Type C” accounts. The court’s decision did not affect these specific accounts, which cannot be transferred out of Russia.
This action involves sanctions that have restricted financial transactions involving Russian institutions since the invasion of Ukraine in February 2022. VTB is aiming to recover funds frozen abroad, particularly after JPMorgan restricted access to Russian clients’ assets due to international sanctions.
See Related: Russian Court Reverses Seizure Of JPMorgan’s Funds
JPMorgan Responds To Sanctions
JPMorgan Chase, the largest US bank, has not disclosed the precise amount of its available assets in Russia, but it previously acknowledged that claims and court orders to freeze its assets exceed the amount of assets it holds in the country. The bank has also emphasized that US sanctions prevent it from releasing frozen funds, complicating the resolution of disputes like the one with VTB.
JPMorgan recently sought to dismiss a lawsuit filed by VTB in the US involving a $439.5 million account that was frozen after Russia’s military intervention in Ukraine. JPMorgan accused VTB of “coercing” the bank into requesting the case’s dismissal, further illustrating the complex nature of financial disputes under current geopolitical conditions.
This latest legal move adds another layer to the growing financial tensions between Russia and Western financial institutions. With increasing sanctions and asset freezes affecting Russian businesses and government entities, the financial repercussions have been profound.
