JPMorgan Chase says its Russia assets may be seized after lawsuits in Russia and US
- A Russian court has seized funds in JPMorgan’s accounts after Russia’s state-owned bank filed a lawsuit to recover its funds blocked abroad
- The measure is not expected to have any direct impact on American customers
JPMorgan Chase said its assets in Russia may be seized following lawsuits in Russian and U.S. courts, the bank said in a filing Wednesday.
The bank is facing several legal challenges related to its Russian transactions after US and European countries imposed economic sanctions on Russia in response to its invasion of Ukraine.
The value of claims and orders to freeze assets exceeds JPMorgan’s available assets in Russia, the largest US lender said. JPMorgan declined to comment beyond the filing.
A Russian court ordered the seizure of funds in JPMorgan accounts earlier this month after the Russian state bank filed a lawsuit to get back its funds blocked abroad.
Meanwhile, JPMorgan sued VTB Bank as the US lender tried to block VTB’s attempt to recover $439.5 million.
JPMorgan Chase said its assets in Russia may be seized following lawsuits in Russian and U.S. courts
JPMorgan Chase boss Jamie Dimon
JPMorgan accused the Russian courts of ignoring the bank’s contractual rights and obligations, and ignoring its inability to make various payments due to sanctions laws.
A Russian court has ruled that the lawsuit against JPMorgan in New York must be dropped.
JPMorgan said U.S. law prohibits it from releasing funds to sanctioned companies, including VTB, which was placed on the U.S. Treasury Department’s sanctions list in February 2022.
This move is unlikely to directly impact US consumers.
It is the latest example of US banks getting caught between Western sanctions on regimes and foreign interests.
JPMorgan, led by CEO Jamie Dimon, is the largest bank in the US by assets.
In the two years since Russia’s invasion of Ukraine, the Biden administration has imposed sanctions, oil price ceilings and trade restrictions on Moscow.
Last month, President Biden signed a sweeping foreign aid bill that includes new powers for US officials to locate and seize Russian assets in the US. CNBC reported.
It also fueled an ongoing U.S. effort to convince European allies to release Russian state resources to help Ukraine.