JPMorgan Seeks Dismissal of Lawsuit Against Russia’s VTB Bank Amid Complex Sanctions Dispute

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JPMorgan Chase requested that a U.S. judge in Manhattan dismiss its ongoing lawsuit against Russia’s VTB Bank (VTBR.MM), citing claims that VTB coerced it into making this request. The lawsuit pertains to a $439.5 million account that was frozen following Russia’s invasion of Ukraine.

JPMorgan initially filed the lawsuit in April, seeking resolution after VTB had taken legal action in Russia to recover the frozen funds. The major U.S. bank argued that U.S. sanctions prevented it from releasing the funds and emphasized that VTB had previously agreed to settle disputes in Manhattan rather than in Russian courts.

However, JPMorgan contends that VTB subsequently obtained an injunction from a Russian court, compelling it to cease the lawsuit in Manhattan. According to JPMorgan, the request to discontinue the lawsuit was made “against its will” due to the potential risks it might face in Russia if it did not comply with the injunction.

VTB, which ranks as Russia’s second-largest bank, is also seeking the dismissal of JPMorgan’s lawsuit. The two banks have been unable to reach an agreement on the precise terms for a joint dismissal order, and the matter now awaits review by U.S. District Judge Lorna Schofield in Manhattan.

U.S.-based legal representatives for VTB did not immediately provide comments on the situation, and JPMorgan’s attorneys also did not respond to separate inquiries.

VTB was added to the U.S. Department of the Treasury’s sanctions list in February 2022 as part of the broader sanctions imposed following Russia’s invasion of Ukraine. On August 6, Judge Schofield imposed a $500,000 fine on VTB for failing to comply with an earlier order to seek a stay of the Russian legal proceedings.

The dispute has led to some of JPMorgan’s assets in Russia being frozen, complicating the situation further. In its quarterly report released on August 2, JPMorgan disclosed that it is facing claims and asset freezes in Russia that exceed the available assets it holds there, with ongoing concerns about potential asset seizures.

The case is officially titled JPMorgan Chase Bank NA v. VTB Bank PJSC, and it is being heard in the U.S. District Court for the Southern District of New York under case number 24-02924.