The order comes after VTB filed a lawsuit in St. Petersburg’s Arbitration Court last week seeking full return of funds frozen in the U.S. and relief from JPMorgan’s announcement of plans to withdraw from Russia. It is.
The next hearing in the Russia case is July 17th.
JPMorgan declined to comment. VTB did not immediately respond to CNBC’s request for comment.
The order was the latest example of U.S. banks caught between the demands of the Western sanctions regime and foreign interests. JPMorgan is the largest bank in the United States by assets and is run by veteran CEO Jamie Dimon.
Two years after Russia invaded Ukraine, the Biden administration has imposed an unprecedented set of sanctions, oil price caps and trade restrictions aimed at weakening Russia’s military establishment.
On Wednesday, President Joe Biden signed into law a sweeping foreign aid bill that includes new powers for U.S. authorities to detect and seize Russian assets in the United States. It also supported continued US efforts to persuade European allies to release Russian state assets in support of Ukraine.
JPMorgan filed its own lawsuit against VTB last week in the Southern District of New York, seeking to block VTB’s efforts. Focus on it U.S. law prohibits banks from releasing VTB’s $439.5 million, it said.
This would expose JPMorgan to nearly $500 million in losses from complying with U.S. sanctions.
American banks seeking to thwart VTB’s efforts said the Russian company had broken its contractual promise to seek relief in American courts and instead found a more friendly venue in Russia.
JPMorgan said Russian courts have recognized at least six other similar efforts by Russian lenders against banks in the United States and Europe.
JPMorgan said it faces “certain and irreparable harm” from VTB’s efforts.
