JPMorgan Chase says its Russia assets may be seized after lawsuits in Russia and US

JPMorgan Chase said its assets in Russia may be seized after lawsuits in Russian and US courts, the bank said in a filing on Wednesday.

The bank faces several legal challenges over its Russian dealings after the US and European nations imposed economic sanctions on Russia in response to its invasion of Ukraine.

The value of claims and orders to freeze assets exceed JPMorgan's available assets in Russia, the largest US lender said. JPMorgan declined to comment beyond the filing.

A Russian court earlier this month ordered the seizure of funds in JPMorgan accounts after Russian state-owned bank sued to regain its funds blocked abroad.

Meanwhile, JPMorgan sued VTB Bank as the US lender sought to block VTB's effort to recover $439.5 million.

JPMorgan Chase said its assets in Russia may be seized after lawsuits in Russian and U.S. courts

JPMorgan Chase boss Jamie Dimon

JPMorgan accused Russian courts of ignoring the bank's contractual rights and obligations, and disregarding its inability to make various payments because of sanctions laws.

A Russian court directed that JPMorgan's New York lawsuit be stopped. 

JPMorgan said US law prohibits it from releasing funds to sanctioned companies, including VTB, which was put on the US Department of the Treasury's sanctions list in February 2022. 

The move is unlikely to affect American consumers directly. 

It is the latest example of US banks getting caught between Western sanctions against regimes and overseas interests. 

JPMorgan, which is run by CEO Jamie Dimon, is the biggest bank in the US by assets.

In the two years since Russia's invasion of Ukraine, the Biden administration has implemented sanctions, oil price caps and trade restrictions against Moscow.

Last month, President Biden signed into law a sweeping foreign aid bill that includes new powers for US officials to locate and seize Russian assets in the US, CNBC reported.

It also boosted an ongoing American effort to convince European allies to release Russian state assets to assist Ukraine.