Reuters reported on Tuesday that a Moscow court has authorized the seizure of a staggering 12.4 million euros ($13.34 million) worth of assets held in Russia by a European subsidiary of financial giant JPMorgan and Germany’s prominent Commerzbank.
The court’s ruling, issued on April 26, follows a case brought forward by Russia’s Transkapitalbank, which found itself under the weight of Western sanctions following Russia’s invasion of Ukraine in 2022.
The US Treasury’s imposition of sanctions against Transkapitalbank on April 20, 2022, sent shockwaves through Western banks and companies with interests in Russia, prompting concerns about the safety of their funds and property amidst escalating tensions.
Russia swiftly responded to Western sanctions by seizing assets, installing new management at Western companies’ subsidiaries, and pressuring departing firms to sell at significant discounts, reshaping the business landscape.
Despite approximately 1,000 companies exiting the country, many, including French retailer Auchan and Benetton, continued operations or suspended activities in Russia, according to an analysis by the Yale School of Management.
Transkapitalbank has yet to comment on the ruling, while both JPMorgan and Commerzbank, which had scaled back their presence in Russia, declined to provide statements.
The news of the court ruling, initially reported by Interfax and subsequently covered by German media outlets such as Handelsblatt, marks an ongoing development in a story with unfolding chapters.
