Skip to content
Edit post

Reuters: Russian court cancels confiscation of some JPMorgan assets in dispute with Russian bank

by Rachel Amran and The Kyiv Independent news desk May 2, 2024 11:22 PM 2 min read
A sign above the entrance to a branch of VTB Bank PJSC in Moscow, Russia, on Tuesday, Feb. 22, 2022. (Andrey Rudakov/Bloomberg via Getty Images)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

A Russian court canceled the seizure of some of JPMorgan funds in Russia as part of a lawsuit with the Russian state-owned bank VTB, Reuters reported on May 2.

JPMorgan has faced several legal challenges with VTB largely as a result of U.S. and European economic sanctions on Russia and its financial institutions following the outbreak of the full-scale invasion.

VTB sued JPMorgan in a Russian court to force the American lender to recover $439.5 million of its assets in JPMorgan that was blocked following the implementation of U.S. sanctions.

JPMorgan then launched a lawsuit in a U.S. court in late April to prevent VTB from recovering $439.5 million. It argued that American law prohibited the lender from releasing the money, and VTB would try to seize its assets abroad if it prevailed in the Russia lawsuit.

The Russian court initially ordered the seizure of all blocked funds in JPMorgan accounts. However, this week, the court reversed this decision and ruled that only some of the JPMorgan assets would be seized. The funds that cannot be seized include "type C accounts," which cannot be transferred out of Russia, and current accounts used to pay staff and taxes.  

Russian court documents indicate that JPMorgan has 243.3 billion roubles ($2.64 billion) of assets in Russia, 204.7 billion of which is in type C accounts.

The U.S. originally announced extensive economic sanctions against VTB Bank at the outset of Moscow's full-scale invasion of Ukraine on Feb. 24, 2022.

Since then, the U.S. and its partners have imposed extensive sanctions against Russian entities, individuals, and other actors aiding Moscow's aggression against Ukraine.

Gazprom reports nearly $6.9 billion in net losses in 2023
The state-owned Russian energy giant Gazprom reported a net loss of 629 billion rubles (nearly $6.9 billion) in 2023, the company’s largest profit downturn in decades amidst falling gas prices and a limited European market.
Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

10:37 AM

Blinken meets with Sandu in Moldova, announces $50 million in support.

U.S. Secretary of State Antony Blinken visited Moldova on May 29 to meet with President Maia Sandu and announce support worth $50 million to help Chisinau transition away from Russian energy dependence and further integrate with the EU, amid warnings of heightened hybrid threats from Russia.
Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.