Russian court freezes funds of US banks JP Morgan and Mellon
The court decision stated that the deputy prosecutor of Russia “in defense of the interests of the Russian Federation” initiated the action related to the revocation of the license of the Central Bank of Ukraine MR Bank in connection with the plan to close the bank by 2025.
The prosecutor's office launched the action late last month against Ukrainian regulators and two US banks – Bank of New York Mellon and JPMorgan Chase Bank, recognizing the move as “expropriation” of assets from MR Bank – the Ukrainian subsidiary of Sberbank, Russia's largest bank. . . It said the move violated the state's legitimate interests.
The prosecutor's office sought MR Bank's recognition of $121 million in an account at JP Morgan Chase as fair property of Sberbank and $251 million in an account at Bank of New York Mellon – a total loss of $372 million. .
According to court documents, the move deprived Sberbank of judicial control over its subsidiary and the right to dispose of its income, meaning the state “lost the opportunity to secure its own income from MR Bank's activities abroad.”
Both Sberbank and JP Morgan declined to comment on the court action.
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Editing by Matthew Lewis Reporting by Reuters
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