LONDON - JPMorgan Emerging Europe, Middle East & Africa Securities PLC (JEMA) has been named as a defendant in a civil lawsuit initiated by Sberbank KIB in the Russian courts. The case, which commenced on February 14, 2025, involves an alleged failure to deliver Eurobonds following a payment made by Sberbank KIB in February 2022, due to sanctions imposed on Russia.
The claim of USD830,183 is against various J.P. Morgan entities, including JEMA, and is related to an agreement with JPMS plc for the purchase of Eurobonds. JEMA's manager informed the company's board that there appears to be no direct connection between JEMA and the amounts or Eurobonds Sberbank KIB claims are owed.
The legal proceedings also involve JEMA's holdings in 25 Russian securities and the cash held in the company's 'S' Account. As of October 31, 2024, the Russian securities were valued at £1.4 million in JEMA's accounts. The 'S' Account, containing £35.3 million, is not recognized as an asset on the company's balance sheet due to the funds being frozen following sanctions stemming from Russia's 2022 invasion of Ukraine.
This lawsuit adds to ongoing legal challenges JEMA faces in Russia, including those brought by VTB Bank, which have implications for the solvency of the company's Russian sub-custodian and its Russian assets.
The company's annual report and financial statements, which detail JEMA's Russian securities, 'S' Account, and other assets, are available on its website. JEMA and its management are monitoring the situation and will provide updates on significant developments.
This news is based on a press release statement and is a developing story.
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