Sanctions for Russia Make This Largest US Bank Even Harder

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Jakarta –

Government Russia began carrying out acts of ‘revenge’ because they often received sanctions from western countries led by the United States (US) for their military attacks on Ukraine. Most recently, the country led by Vladimir Putin froze a number of assets of the largest US banks.

Launching from CNBC, Saturday (27/4/2024), a Russian court has ordered the freezing of assets belonging to banking giant JPMorgan Chase in that country. This decision was taken to support the second largest bank in Russia, VTB, in order to recover their assets amounting to US$ 439.5 million or Rp. 7.13 trillion (exchange rate Rp. 16,240/US dollar) which had been blocked abroad due to sanctions led US.

The asset freezing order was issued on Wednesday (24/40) after VTB bank filed a lawsuit last week with the St. Petersburg arbitration court. Petersburg, asked that funds frozen in the US be compensated, and asked for relief because JPMorgan said it planned to exit Russia.

“The court ordered the forfeiture of funds in JPMorgan accounts in Russia and other movable and immovable property including the bank’s shares in Russian subsidiaries,” the court order said.

Regarding the asset freezing order, both VTB and JPMorgan were reluctant to comment. This shows how JPMorgan suffered a loss of almost half a billion dollars due to complying with US sanctions.

However, as a form of resistance, JPMorgan also filed its lawsuit against VTB last week in the Southern District Court of New York. In its lawsuit, JPMorgan attempted to block VTB’s efforts by arguing that US law prohibits the bank from releasing US$439.5 million in VTB funds.

The largest bank in the US also said that the company Russia It broke its contractual promise to seek redress in American courts, and instead sought a friendlier venue in Russia.

(eds/eds)