In a shocking development, a Russian court ordered authorities to confiscate JPMorgan Chase’s assets, amounting to $439.5 million. This decision came after a Kremlin-led lender, VTB Bank PJSC, filed a lawsuit against JPMorgan and its subsidiaries in the Arbitration Court of St. Petersburg and the Leningrad Region on April 17.
This move was Putin’s response to the recent decision of the Biden administration to send seized Russian assets to Ukraine as part of its foreign funding package.
VTB claims the lawsuit intends to “recover losses” they incurred from the largest bank in the United States.
The court orders the requisition of funds in JP Morgan’s accounts in Russia and “movable and immovable properties, including the bank’s shares in a Russian subsidiary.
The next hearing on the VTB’s case is on July 17.
JPMorgan refused to comment on the Russian court’s interim measures.
American banks often find themselves ensnared amid ongoing international conflicts, such as the Ukraine-Russia war, in which the Biden administration was involved.
In support of Ukraine, the White House has launched various sanctions against Putin’s government, including oil price caps and trade restrictions, to weaken its military machine.
JPMorgan is the largest US bank in assets, owned by veteran CEO Jamie Dimon.
In retaliation for the VTB lawsuit, JPMorgan Chase counter-charged in the United States, asking the US court to halt the seizure. According to JPMorgan, this move violates their previous agreements.
JP Morgan remarked that the VTB violated their contractual agreement to seek relief in American courts instead of pursuing redress in Russia, where they would likely get favorable judgments.
The US bank added that VTB’s actions caused them “certain and irreparable harm.”
JPMorgan and Goldman Sachs have announced their plans to close their businesses in Russia. Nevertheless, experts cautioned that this process will extend beyond a year to finalize.
Since 2022, any attempts to leave Russia have required authorization from President Vladimir Putin. With this, only seven of the 45 banks operating in the country were given presidential approval: Mercedes-Benz Bank, Ikano, J&T, and Intesa.
Recently, a Russian court held $36 million worth of assets by Goldman as state-owned bank Otkrite filed charges against them. This was followed by a verdict ordering the Wall Street investment bank to pay the funds to Otkritie.
Volkswagen’s assets were also seized early last year, which amounted to $204 million after its former partner Gaz Group filed a lawsuit against the company.
hahaha….the big liberal pos banks are getting a taste of government control of their assets…..how do they think we feel when we see the chinese and wef threat over our assets!!!