Russia court allows seizure of $13 mln of JPMorgan and Commerzbank assets

FRANKFURT (Reuters): A Moscow court has authorized the seizure of some 12.4 million euros ($13.34 million) of assets held in Russia by a European subsidiary of JPMorgan and Germany’s Commerzbank, it said in a preliminary ruling.

The court made the ruling on April 26 in favour of a case lodged by Russia’s Transkapitalbank, a lender that came under Western sanctions in the wake of Russia’s invasion of Ukraine in 2022.

“The application is motivated by the fact that on April 20, 2022, sanctions were introduced against the plaintiff” by the U.S. Treasury, the court document said.

Western banks and other companies have long worried about their funds and property in Russia since the onset of the war and retaliation by Russia after sanctions were imposed.

Russia has seized assets, installed new management at Western companies’ subsidiaries and forced departing firms to sell at huge discounts in response to Western sanctions.

About 1,000 companies have exited the country. But hundreds of companies including French retailer Auchan and Benetton are still operating or have put business on hold there, according to analysis by Yale School of Management.

Transkapitalbank didn’t immediately respond to an emailed questions about the case.

JPMorgan and Commerzbank, which have both pared down their footprint in Russia, declined to comment.

Interfax reported on the ruling last week and German media, including Handelsblatt, this week reported the development.