(CTN News) – According to court filings, a Russian court has ordered the seizure of funds in JPMorgan Chase bank accounts in Russia, in a suit filed by VTB, a state-owned bank seeking to regain funds blocked abroad.
There was a lawsuit filed against VTB in New York by JP Morgan Chase following the invasion of Ukraine by Russia in 2022, which resulted in VTB being sanctioned, preventing them from recouping $439.5 million on the blocked account.
The JPMorgan Chase has declined to comment on the interim measures that the Russian court has imposed. As of Wednesday, VTB had not yet commented on the matter. There have been no comments made by the firm on its legal disputes with JPMorgan Chase, as it has declined to do so in the past.
On April 22, the Arbitration Court of St Petersburg and the Leningrad Region handed down its ruling.
Therefore, the court ruled that all funds in JPMorgan Chase bank accounts in Russia, including correspondent accounts and those opened in the name of subsidiaries, should be seized.
The court stated in its judgment that it had not seized securities or other property belonging to JPMorgan Chase funds. Also, the domain name jpmorgan.ru was not seized.
As part of the complaint that was filed with a federal court in Manhattan earlier this month, JPMorgan described VTB’s attempt to recover the money in Russia as a “blatant violation” of its agreement to have any disputes resolved in New York by the court.
As a result of the US law, the largest U.S. JPMorgan Chase bank said it was unable to release the $439.5 million, and VTB, Russia’s second-largest bank, will try to seize these assets from the bank, in the event it wins its suit in Russia.
Despite the fact that VTB has a good chance of survival in the Russian market, it said a number of other Russian banks have been granted relief against U.S. and European banks that are required to comply with sanctions laws.
SEE ALSO:
UK to Send the First Migrant Flight to Rwanda in 10-12 Weeks
