‘Coerced’ JPMorgan Chase seeks to end lawsuit against Russian bank
11 August 2024 - 14:42
byJonathan Stempel
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New York — JPMorgan Chase has asked a US judge in Manhattan to dismiss its lawsuit against Russia’s VTB Bank over a $439.5m account frozen after Russia invaded Ukraine, saying VTB “coerced” it into requesting the dismissal.
The largest US bank had sued VTB in April, after the Russian state-owned bank sued in Russia to recover money that had been frozen.
JPMorgan said US sanctions blocked it from releasing the funds, and VTB had agreed to resolve disputes in Manhattan, not Russia. But JPMorgan said VTB later obtained an injunction from a Russian court requiring that it discontinue the Manhattan lawsuit.
JPMorgan said its request for a discontinuance was “against its will” because it faced uncertain risks in Russia if it violated that injunction.
VTB is Russia’s second-largest bank. It also wants JPMorgan’s lawsuit dismissed, but the banks could not agree on appropriate language for a joint dismissal order. US district judge Lorna Schofield in Manhattan will review their proposals.
US-based lawyers for VTB did not immediately respond to requests for comment. JPMorgan’s lawyers did not immediately respond to separate requests.
VTB was put on the US treasury’s sanctions list in February 2022 after the Ukraine invasion.
On August 6, Schofield fined VTB $500,000 after it failed to comply with her order to seek a stay of the Russian case. Some of JPMorgan’s assets in Russia have been frozen in connection with the dispute.
In its quarterly report on August 2, JPMorgan said it faced claims and asset freezes in Russia that exceeded the available assets it had there, and that asset seizures remained possible.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
‘Coerced’ JPMorgan Chase seeks to end lawsuit against Russian bank
New York — JPMorgan Chase has asked a US judge in Manhattan to dismiss its lawsuit against Russia’s VTB Bank over a $439.5m account frozen after Russia invaded Ukraine, saying VTB “coerced” it into requesting the dismissal.
The largest US bank had sued VTB in April, after the Russian state-owned bank sued in Russia to recover money that had been frozen.
JPMorgan said US sanctions blocked it from releasing the funds, and VTB had agreed to resolve disputes in Manhattan, not Russia. But JPMorgan said VTB later obtained an injunction from a Russian court requiring that it discontinue the Manhattan lawsuit.
JPMorgan said its request for a discontinuance was “against its will” because it faced uncertain risks in Russia if it violated that injunction.
VTB is Russia’s second-largest bank. It also wants JPMorgan’s lawsuit dismissed, but the banks could not agree on appropriate language for a joint dismissal order. US district judge Lorna Schofield in Manhattan will review their proposals.
US-based lawyers for VTB did not immediately respond to requests for comment. JPMorgan’s lawyers did not immediately respond to separate requests.
VTB was put on the US treasury’s sanctions list in February 2022 after the Ukraine invasion.
On August 6, Schofield fined VTB $500,000 after it failed to comply with her order to seek a stay of the Russian case. Some of JPMorgan’s assets in Russia have been frozen in connection with the dispute.
In its quarterly report on August 2, JPMorgan said it faced claims and asset freezes in Russia that exceeded the available assets it had there, and that asset seizures remained possible.
Reuters
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