Russian court approves seizure of assets from JPMorgan, Commerzbank

A Moscow court has granted authorisation for the seizure of approximately 12.4 million euros ($13.34 million) in assets held in Russia by a European subsidiary of JPMorgan and Germany's Commerzbank, according to a preliminary ruling released.

The ruling, issued on April 26, favoured a case brought forward by Russia's Transkapitalbank, a lender that faced Western sanctions following Russia's invasion of Ukraine in 2022.

The court's decision cited the imposition of sanctions against Transkapitalbank by the US Treasury on April 20, 2022, as grounds for the asset seizure.

Since the outbreak of the conflict and subsequent imposition of sanctions, Western banks and corporations have expressed concerns about the safety of their funds and assets in Russia. In response, Russia has undertaken measures such as asset seizures, management changes at Western subsidiaries, and compelling departing firms to sell their assets at significant discounts.

Approximately 1,000 companies have exited Russia in response to the sanctions, although analysis from the Yale School of Management indicates that several companies, including French retailer Auchan and Benetton, continue to operate or have temporarily halted their operations in the country.

Transkapitalbank has yet to provide a response to inquiries regarding the case, while both JPMorgan and Commerzbank, having scaled back their operations in Russia, declined to comment on the matter.

The ruling was initially reported by Interfax last week and subsequently covered by various German media outlets, including Handelsblatt, this week.

(With Reuters inputs)