Russia Freezes JPMorgan And BNY Mellon's Assets Worth IDR 5.8 Trillion

Russia has frozen assets belonging to JPMorgan and BNY Mellon worth IDR 5.8 trillion (Photo; Doc. Cityam)

JAKARTA - The Moscow Region Arbitration Court has just issued a decision ordering asset freezes worth US$372 million (equivalent to Rp5.8 trillion) owned by two US financial giants, JPMorgan Chase and BNY Mellon. This decision was born out of a long dispute over the cash funds stored in the branches of the bank in Russia, which is now attracting worldwide attention.

The move is seen as Russia's strong response to actions taken by Ukraine's National Bank that revoked the MR Bank's operating license, Russia's Sberbank subsidiary. The Russian side alleges that JPMorgan Chase and BNY Mellon had illegally seized MR Bank assets, prompting an escalation of the dispute to the court.

Reporting from Cointurk, the Deputy Attorney General of Russia submitted a request to the court with the aim of protecting the interests of the Russian Federation. According to him, US$ 121 million in JPMorgan Chase and US$251 million in BNY Mellon belonged to Sberbank, one of Russia's largest banks. The Deputy Attorney General emphasized that this step was taken to ensure that important state-owned assets remain protected amid heated geopolitical situations.

The decision is also rooted in a complex international situation, in which the United States government had previously frozen 300 billion US dollars in Russian Central Bank reserves as a sanction over Russia's invasion of Ukraine. This action is part of a broader package of economic sanctions that includes restrictions on Russia's major financial institutions, including Sberbank and VTB.

With this latest decision, tensions between Russia and the United States are increasing. Sanctions imposed by the US have sparked reactions from the Russian government, which is trying to protect its economic interests amid international pressure.

To date, neither JPMorgan Chase nor BNY Mellon have made an official statement regarding the Russian court's decision. How these two banks will respond to this legal action is highly anticipated by market players and global financial analysts, given its potential to exacerbate diplomatic relations and international banking.