JPMorgan Chase Seeks Dismissal of Lawsuit Against Russia’s VTB Bank Amid Legal Pressures

JPMorgan Chase has requested the dismissal of its lawsuit against Russia’s VTB Bank, citing coercion by the Russian state-owned bank. The legal battle began when JPMorgan froze $439.5 million of VTB’s funds following U.S. sanctions imposed after Russia’s invasion of Ukraine. VTB retaliated by suing JPMorgan in a Russian court, which subsequently ordered the U.S. bank to drop its Manhattan lawsuit.

JPMorgan argued that the Russian court’s injunction forced its hand, leaving the bank vulnerable to legal and financial risks in Russia if it did not comply. Although both banks seek to end the Manhattan litigation, they have not reached an agreement on how to phrase the dismissal order. U.S. District Judge Lorna Schofield will decide on the appropriate course of action.

The situation underscores the complexities and pressures faced by global financial institutions navigating sanctions and legal disputes across jurisdictions. VTB, sanctioned by the U.S. Treasury in February 2022, continues to challenge JPMorgan’s actions, complicating the resolution of the frozen assets. Meanwhile, JPMorgan’s assets in Russia have also been frozen, adding to the financial uncertainties the bank faces in the region.