JPMorgan Chase ‘forced’ to end New York lawsuit against Russian bank VTB

By Jonathan Stempel

NEW YORK (Reuters) – JPMorgan Chase asked a U.S. judge in Manhattan on Friday to dismiss a lawsuit against Russian bank VTB over a $439.5 million account frozen after Russia invaded Ukraine, saying VTB “coerced” it to request dismissal.

The largest US bank sued VTB in April after the Russian state bank sued Russia to recover money that had been frozen.

JP Morgan said US sanctions prevented the funds from being released and VTB agreed to settle the disputes in Manhattan, not Russia.

But JPMorgan said VTB later obtained an injunction from a Russian court asking it to drop the Manhattan suit.

JPMorgan said its request for a freeze was “against its will” because it faced uncertain risks in Russia if it violated that ban.

VTB is the second largest bank in Russia. It also wants JPMorgan’s lawsuit dismissed, but the banks could not agree on appropriate language for a joint dismissal order. U.S. District Judge Lorna Schofield in Manhattan will review their motions.

VTB’s U.S. attorneys did not immediately respond to requests for comment. JPMorgan lawyers did not immediately respond to separate requests.

VTB was placed on the US Treasury Department’s sanctions list in February 2022 after the invasion of Ukraine.

On August 6, Schofield fined VTB $500,000 after it failed to comply with her order to request a suspension of the Russian case.

Some of JPMorgan’s Russian assets have been frozen in connection with the dispute.

In its quarterly report on Aug. 2, JPMorgan said it faces claims and asset freezes in Russia that exceed the available assets it has there, and that asset seizures remain possible.

The case is JPMorgan Chase Bank NA v. VTB Bank PJSC, U.S. District Court, Southern District of New York, no. 24-02924.

(Reporting by Jonathan Stempel in New York; Editing by David Gregorio)