JPMorgan Chase asked a US judge in Manhattan on Friday to end its lawsuit against Russian bank VTB over a $439.5 million account frozen after Russia’s invasion of Ukraine, saying VTB has “forced” him to reject the request.
The largest US bank sued VTB in April, after the Russian state bank filed a lawsuit in Russia to recover frozen funds.
JP Morgan said US sanctions prevented it from releasing funds and that VTB had agreed to resolve disputes in Manhattan, not Russia.
But JPMorgan said VTB later received an injunction from a Russian court asking it to end the Manhattan lawsuit.
JPMorgan said its withdrawal request was “against its will” because Russia faced uncertain risks if it defied the sanctions.
VTB is the second largest bank in Russia. She also wants JPMorgan’s lawsuit dismissed, but the banks failed to agree on the language of a joint dismissal order. Manhattan District Judge Lorna Schofield will consider their recommendations.
US-based lawyers for VTB did not immediately respond to requests for comment. Lawyers for JPMorgan did not immediately respond to further requests.
VTB was placed on the US Treasury sanctions list in February 2022, following the invasion of Ukraine.
On August 6, Ms. Schofield fined VTB $500,000 for failing to comply with her order to stay in the Russia case.
Some of JPMorgan’s assets in Russia were frozen as part of this dispute.
In its quarterly report on August 2, JPMorgan said that it faced claims and asset freezes in Russia that exceeded the assets available there, and that the seizure of assets was still possible.
The case is JPMorgan Chase Bank NA v VTB Bank PJSC, US District Court, Southern District of New York, No. (Reporting by Jonathan Stempel in New York; Editing by David Gregorio)
2024-08-09 22:58:44
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