(DailyEmailNews.com) – Two of the great powers are on a collision course after a Moscow court froze $372 million from U.S. institutions JP Morgan Chase and Bank of New York Mellon.
Launched by Russia’s deputy prosecutor, this decision is claimed to be a direct response to Ukraine’s actions against a Russian bank subsidiary.
The move highlights the escalating financial tensions between Russia, Ukraine and Western nations amid ongoing geopolitical conflicts.
The Moscow Region Arbitration Court’s ruling targets funds held by Citibank and Morgan Chase Bank’s Russian branches.
This action is part of Russia’s alleged efforts to defend its state interests following Ukraine’s decision to revoke the license of Sberbank-subsidiary MR Bank and plans to liquidate it by 2025.
Russian authorities view Ukraine’s actions as an unjust “expropriation” of assets.
The prosecutor’s office claims that $121 million in JP Morgan Chase and $251 million in Bank of New York Mellon rightfully belong to Sberbank.
This move allegedly denied Sberbank judicial control over its subsidiary and the right to its income.
The case highlights the challenges American banks face in navigating between Western sanctions and foreign interests.
While the Biden-Harris administration has imposed broad sanctions on Russia since the Ukraine invasion, U.S. banks find themselves caught in the crossfire of international legal fights.
In a related development, a Russian court ruled in favor of VTB Bank, allowing it to recover $439.5 million from JPMorgan Chase, funds that were frozen in U.S. accounts following the Ukraine invasion.
The court ordered the seizure of JPMorgan’s assets in Russia, including funds and property.
The actions taken by Russian courts are retaliatory measures against Western financial institutions.
They come in response to the Biden-Harris administration’s recent foreign aid bill, which grants U.S. officials new powers to seize Russian assets and encourages European allies to release Russian state assets to support Ukraine.
JPMorgan has filed a lawsuit in New York to block VTB’s efforts, citing U.S. law that prevents the release of the frozen funds.
The American bank argues that VTB’s actions will significantly harm it and notes that similar cases have occurred in Russian courts against Western banks.
As tensions continue to grow, this situation raises important questions about the effectiveness and consequences of current U.S. foreign policy.
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