JPMorgan Chase Battles Russia's VTB Bank Over Frozen $439.5 Million

JPMorgan Chase has requested a U.S. judge in Manhattan to dismiss its lawsuit against Russia's VTB Bank over a frozen $439.5 million account. The U.S. bank accuses VTB of coercing it into seeking the dismissal after VTB obtained an injunction from a Russian court. Both banks are now awaiting a decision from U.S. District Judge Lorna Schofield.

JPMorgan Chase has asked a U.S. judge in Manhattan to dismiss its lawsuit against Russia's VTB Bank concerning a frozen $439.5 million account. The bank alleges that VTB coerced it into filing the dismissal request.

Initially, JPMorgan had sued VTB in April after the Russian bank sued in Russia to recover the frozen funds. JPMorgan cited U.S. sanctions as the reason for the freeze, noting that VTB had agreed to settle disputes in Manhattan, not Russia. However, a Russian court's injunction later forced JPMorgan to seek a discontinuance.

Both banks are now awaiting a ruling from U.S. District Judge Lorna Schofield on the matter. The case highlights the ongoing impact of U.S. sanctions on VTB, which was sanctioned following Russia's invasion of Ukraine in February 2022, leading to frozen assets and further complications for JPMorgan in Russia.