Russian court freezes funds of US banks JP Morgan

3/10/2024 6:05

        The Moscow Region Arbitration Court on
        Wednesday froze funds of the U.S. Bank of New York Mellon
        held by the Russian branch of Citibank as well as funds of
        JP Morgan Chase held by its Russian affiliate of Morgan Chase
        Bank amounting in total to about $372 million.
        
        The court decision said the action was initiated by Russia's
        deputy prosecutor "in defence of the interests of the Russian
        Federation" in connection with the Ukrainian central bank's
        withdrawal of the licence of MR bank with plans to wind up the
        bank by 2025.
        
        The prosecutor's office launched the action late last month
        against Ukrainian regulators and the two U.S. banks - Bank of
        New York Mellon and JP Morgan Chase Bank recognising the action
        as "expropriation" of the property of MR bank - Ukrainian
        subsidiary of Russia's largest bank, Sberbank. It said the
        action infringed the state's lawful interests.
        
        The prosecutor's office sought recognition of $121 million
        placed by MR bank in an account of JP Morgan Chase as the
        rightful property of Sberbank and $251 million placed in an
        account of the Bank of New York Mellon - amounting to a total
        sum of damages of $372 million.
        
        According to court documents, the action resulted in
        Sberbank being denied judicial control over its subsidiary and
        the right to dispose of its income, meaning that the state "lost
        the opportunity to securе its own income from the activity
        abroad of MR bank."
        
        Both Sberbank and JP Morgan declined to comment on the
        court action.