Russian court freezes funds of US banks JP Morgan and Mellon By Reuters

(Reuters) – The Arbitration Court of the Moscow Region on Wednesday froze US Bank of New York Mellon (NYSE: ) funds held by the Russian branch of Citibank, as well as funds JP Morgan Chase (NYSE: ) held by its Russian subsidiary Morgan Chase Bank, totaling approximately $372 million.

The court decision says the action was initiated by Russia’s deputy prosecutor “in defense of the interests of the Russian Federation” in connection with the Ukrainian central bank’s withdrawal of MR Bank’s license, with intentions to liquidate the bank by 2025.

The prosecutor’s office started the action at the end of last month against the Ukrainian regulatory authorities and the two US banks – Bank of New York Mellon and JP Morgan Chase Bank, recognizing the action as “expropriation” of the property of MR bank – the Ukrainian subsidiary of the largest bank from Russia, Sberbank. . He said the action violated the state’s legal interests.

The prosecutor’s office requested the recognition of $121 million placed by MR bank in an account of JP Morgan Chase as the legal property of Sberbank and $251 million placed in a Bank of New York Mellon account – worth total compensation of 372 million dollars. .

According to court documents, the action resulted in Sberbank being denied judicial control over its subsidiary and the right to dispose of its revenues, meaning the state “lost the opportunity to secure its own revenues from MR Bank’s overseas activity.” .

Both Sberbank and JP Morgan declined to comment on the court action.