JPMorgan Chase (JPM.N) said in a filing that its assets in Russia may be seized after lawsuits in Russian and US courts. According to a Reuters report, the bank had faced several legal challenges over its Russia dealings after the US and European nations imposed economic sanctions in response to its invasion of Ukraine. JPMorgan has not so far specified the amount of its assets in Russia.
The filing comes in response to a court order issued by a Russian court last month. The court ordered the seizure of funds in JPMorgan accounts after Russian state-owned bank VTB (VTBR.MM) sued to regain its funds blocked abroad. Meanwhile, JPMorgan sued Russia’s VTB Bank (VTBR.MM), as the US lender has sought to block VTB’s effort to recover $439.5 million.
The news comes after Russia had said that it would respond to any US confiscation of its currency reserves frozen in the West by seizing the assets, including property and cash, of US citizens and investors in Russia. Russia’s threat was in reaction to the fact that Russian assets in the West may be frozen, seized, and possibly sent to Ukraine.
Taking to Telegram, Russian Foreign Ministry spokeswoman Maria Zakharova promised a “severe response” that could result in what she called “tit-for-tat” measures. Zakharova also made it clear that Moscow would not give up territories from Ukraine in return for the seized assets.
“Our motherland is not for sale,” Zakharova had written on the Telegram messaging app.
“All Russian assets must remain untouched because otherwise there will be a severe response to Western thievery. Many in the West have already understood this. Alas, not everyone.”
Zakharova’s response comes after President Biden recently signed into law a $95 billion bill which included aid to Ukraine, Israel, Taiwan, and other areas. Along with this aid is the question of $300 billion of now blocked Russian holdings in both Europe and the US. Though most of these holdings are in Europe, the US could pave the way by using the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act (REPO) act, which was passed along with the bill. Currently, the US has only $5 billion of Russian holdings, but seizing, freezing, and sending this $5 billion to Ukraine could pave the way for Europe to follow suit.
(With inputs from Reuters)
