The Kremlin-controlled VTB bank has initiated legal action against the largest US bank, JPMorgan, to retrieve funds stuck due to Washington’s sanctions.

The Russian arbitration court in St. Petersburg issued a seizure order targeting JPMorgan’s accounts and shares in its Russian subsidiaries, published in the Russian court register on Wednesday.

The dispute revolves around $439 million held by VTB in a JPMorgan account in the US, frozen under US sanctions.

VTB filed a lawsuit against JPMorgan after the latter moved the funds to an escrow account, unable to access them due to sanctions.

In response, JPMorgan filed a lawsuit in a US court to prevent asset seizure, citing its inability to compensate potential losses.

The court sided with VTB, ordering the seizure of JPMorgan’s Russian assets, Zero Hedge reported.

This case reflects the challenges faced by American banks amid Western sanctions and international disputes.

Similar incidents occurred previously, such as a Russian court freezing assets of Goldman Sachs and ruling in favor of a state-owned Russian bank.

Written by B.C. Begley