Russian court approves seizure of assets from JPMorgan, Commerzbank

A Moscow court has granted authorisation for 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.

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.

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

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

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

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

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

(With Reuters inputs)