In a surprising move, a court in the Moscow Region has ordered a freeze on funds belonging to two major U.S. banks: JP Morgan Chase and The Bank of New York Mellon. This freeze affects a staggering amount of nearly 93.5 billion rubles, which is about $1 billion!
Why Did This Happen?
This court order is the result of a case filed by Russia’s Prosecutor General last month. It’s part of an ongoing legal battle concerning the liquidation of a bank called the International Reserve Bank (MR Bank). This bank was a subsidiary of Sberbank, one of Russia's largest banks. The Ukrainian authorities closed MR Bank back in early 2022, leading to a series of legal disputes over its funds.
When MR Bank was shut down, it had approximately $372 million deposited with JP Morgan and The Bank of New York. However, due to actions taken by Ukraine and financial restrictions imposed by the U.S., these funds became inaccessible to Sberbank and the Russian government.
What’s at Stake?
The Ru...
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