Russian Court Freezes JPMorgan Chase Assets Worth $439.5M at VTB's Request
A Russian court has ordered the freezing of funds and assets belonging to US banking giant JPMorgan Chase in Russia.
The decision was made in favor of VTB, Russia's second-largest lender, which is trying to recover $439.5 million that is blocked abroad due to Western sanctions.
VTB filed a lawsuit against JPMorgan and its subsidiaries in the Arbitration Court of St. Petersburg and Leningrad Region on April 17.
The order targets funds in JPMorgan's Russian accounts and includes movable and immovable property, including the bank's stake in a Russian subsidiary.
A dispute has arisen between VTB, a Russian bank, and JPMorgan over $439.5 million in funds held by VTB in a JPMorgan account in the US.
The funds were blocked by Washington as part of Ukraine-related sanctions in 2022.
A court ordered the seizure of all funds in JPMorgan bank accounts in Russia, including correspondent accounts and those opened in the name of a subsidiary.
VTB had requested interim measures due to respondents trying to withdraw assets from Russia, while VTB sought to recover money from the US bank.
In response, JPMorgan filed a lawsuit in the Southern District of New York last week to block VTB's efforts, citing US law that prohibits the bank from releasing the funds owned by VTB.
JPMorgan is worried that VTB, a Russian bank, may try to take over its assets in Russia due to the success VTB has had in seizing assets of other US and EU banks in Russian courts, according to Reuters.
JPMorgan acknowledged VTB's strong prospects in this regard, as Russian courts have granted relief to at least six other local lenders against sanction-compliant banks.
A new hearing in JPMorgan's case is set for July 17.
VTB filed a lawsuit against JPMorgan and its subsidiaries in the Arbitration Court of St. Petersburg and Leningrad Region on April 17.
The order targets funds in JPMorgan's Russian accounts and includes movable and immovable property, including the bank's stake in a Russian subsidiary.
A dispute has arisen between VTB, a Russian bank, and JPMorgan over $439.5 million in funds held by VTB in a JPMorgan account in the US.
The funds were blocked by Washington as part of Ukraine-related sanctions in 2022.
A court ordered the seizure of all funds in JPMorgan bank accounts in Russia, including correspondent accounts and those opened in the name of a subsidiary.
VTB had requested interim measures due to respondents trying to withdraw assets from Russia, while VTB sought to recover money from the US bank.
In response, JPMorgan filed a lawsuit in the Southern District of New York last week to block VTB's efforts, citing US law that prohibits the bank from releasing the funds owned by VTB.
JPMorgan is worried that VTB, a Russian bank, may try to take over its assets in Russia due to the success VTB has had in seizing assets of other US and EU banks in Russian courts, according to Reuters.
JPMorgan acknowledged VTB's strong prospects in this regard, as Russian courts have granted relief to at least six other local lenders against sanction-compliant banks.
A new hearing in JPMorgan's case is set for July 17.
Translation:
Translated by AI
