JPMorgan Chase sued Russia’s state-owned VTB Bank yesterday to halt its efforts to recover $439.5 million from an account that was blocked after Russia invaded Ukraine and VTB was hit with sanctions.
In a complaint filed in federal court in Manhattan, JPMorgan said VTB filed a lawsuit on Wednesday in Russia to recover the money in “blatant breach” of its agreement to have disputes addressed in New York.
JPMorgan said American law prohibits it from releasing the $439.5m, and VTB will try to seize its assets abroad if it prevails in the Russia lawsuit.
It said VTB’s prospects there were good, with Russian courts having granted at least six other Russian banks relief against American and European banks that were required to comply with sanctions laws.
“Thus, JPMorgan is immediately facing a certain Russian judgment exposing its assets to seizure, without timely or assured recourse, simply because it is abiding, as it must, with US law,” JPMorgan’s lawyers said.