Russian Court Approves Seizure of $13 Million in JPMorgan and Commerzbank Assets”
According to a court’s preliminary ruling, a Moscow court has granted permission to seize approximately 12.4 million euros ($13.34 million) in assets held in Russia by a European subsidiary of JPMorgan and Germany’s Commerzbank.
The ruling, issued on April 26, responded to a case brought forward by Russia’s Transkapitalbank, a financial institution that faced sanctions from the U.S. Treasury on April 20, 2022. The court’s decision underscores the legal ramifications of the ongoing geopolitical tensions stemming from Russia’s invasion of Ukraine in 2022.
Since the outbreak of the conflict and the subsequent imposition of Western sanctions, concerns have loomed over the safety of Western companies’ funds and assets in Russia. In response, Russia has taken retaliatory measures, including the seizure of assets, imposition of new management structures at Western subsidiaries, and pressuring departing firms to sell their assets at significant discounts.
Despite the challenging environment, some Western companies have maintained their presence in Russia, while others have temporarily suspended operations. Among those still navigating the landscape are French retailers Auchan and Benetton, although approximately 1,000 companies have chosen to exit the country altogether, according to an analysis by the Yale School of Management.
Transkapitalbank, the plaintiff in this case, has yet to respond to inquiries. Similarly, JPMorgan and Commerzbank, both of which have scaled back their activities in Russia, declined to offer comments on the court ruling.
Reports of the court’s decision surfaced last week through Interfax, with subsequent coverage by German media outlets such as Handelsblatt, highlighting the significance of the development within financial and legal circles.
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