The Arbitration Court of St. Petersburg has seized the assets of JPMorgan Chase in Russia totaling $155.8 million as part of two lawsuits by VTB. The Russian bank demands compensation for losses resulting from the freezing of $439.5 million in VTB's correspondent account due to sanctions.
The seizure was imposed on funds in any currency in all bank accounts of JPMorgan, except for funds in so-called C type accounts, which cannot be transferred outside Russia, according to court materials. The lawsuits were filed on October 7, and interim measures in favor of VTB were promptly taken.
VTB is seeking compensation for damages from nine defendants associated with JPMorgan, including its Russian subsidiary JPMorgan International. JPMorgan stated that American law does not allow the payment of the frozen $439.5 million, and called the transfer of the case to Russian jurisdiction a 'flagrant violation' of the agreement by VTB.
JPMorgan previously stated that the value of the claims against it exceeds its assets in Russia, without specifying the amount.
In August, JPMorgan asked an American judge in Manhattan to dismiss the lawsuit against VTB regarding the $439.5 million account frozen after Russia's deployment of troops in Ukraine in February 2022, stating that VTB 'forced' it to file a motion to dismiss the lawsuit, writes Reuters.
Russian courts have already ruled in favor of Russian banks in similar cases. In the fall of 2023, the Moscow Arbitration Court fully supported Sovcombank's claim against Citibank for damages of $24 million.
Photo: The New York Times