JPMorgan finds itself in the middle of a political war zone

Money On Hook

The bank is accused of making an 'absolutely unacceptable, illegal and absurd decision'.

JPMorgan blocked a payment involving a Russian embassy, a decision described as “illegal and absurd” by the Foreign Ministry in Moscow.

Bloomberg reports that the bank thwarted a remittance from the Russian embassy in Astana, Kazakhstan, to Sogaz Insurance Group 'under the pretext of anti-Russian sanctions imposed by the United States', the ministry said Tuesday in a statement on its website. Sogaz lists OAO Bank Rossiya, a St. Petersburg-based lender facing U.S. sanctions over the Ukrainian crisis, as a strategic partner on its website.

Interfering with the transaction was an 'absolutely unacceptable, illegal and absurd decision', Alexander Lukashevich, a ministry spokesman, said in the statement.

U.S. President Barack Obama announced the action against Bank Rossiya last month as part of a broadening of sanctions that targeted government officials and allies of Russian President Vladimir Putin, whose associates own Rossiya. The embassy’s transaction was for less than $5,000 dollars, a person with knowledge of the dispute said, asking not to be identified because such transfers aren’t public.

'Any hostile actions against the Russian diplomatic mission are not only a grossest violation of international law, but are also fraught with countermeasures that unavoidably will affect activities of the embassy and consulates of the U.S. in Russia', Lukashevich said.

To access the complete Bloomberg article hit the link below:

JPMorgan Assailed by Russia as Bank Blocks Payment

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