MOSCOW, Apr. 25 (Xinhua) - The Arbitration Court of St. Petersburg and Leningrad Region has imposed a freeze on American bank J.P. Morgan funds totaling 439.5 million U.S. dollars, local media reported on Thursday.

This move is part of the provisional measures in a lawsuit filed by Russia's VTB Bank against J.P. Morgan's Russian entities, according to Russia's TASS news agency.

The court has also seized all securities owned by J.P. Morgan structures in Russia, as well as shares in J.P. Morgan entities within Russia that belong to J.P. Morgan Limited.

Previously, it was reported that the same court had taken interim measures in a case concerning VTB's claim for approximately 440 million dollars from the U.S. bank's structures. Case documents reveal that VTB is seeking to recover 439.5 million dollars in damages from J.P. Morgan, in addition to 200,000 rubles in legal expenses for the state duty payment.

In response, J.P. Morgan filed a lawsuit against VTB, demanding an end to its request for the 440 million dollars. The claim was submitted to the federal court in Manhattan. J.P. Morgan asserted that VTB had agreed to the account management terms when it opened a correspondent account for transaction processing in 2008. Under the terms, the account would be governed by U.S. laws and could be frozen if required due to sanctions.

VTB was subjected to sanctions by the United States, Britain, and the EU in the spring of 2022. The sanctions involve asset freezes and a prohibition of transactions with these assets by individuals and legal entities from those countries.

Photo from Financial Times