JPMorgan Emerging EMEA Securities (JEMA) says that it received the following update from the trust’s manager on 18 October 2023:
“The Russian court has granted VTB’s claim for $439m in full against eight (including JEMA) of the nine J.P. Morgan legal entities named as defendants in the original claim. The J.P. Morgan defendants have 30 days from the date of publication of the ruling to appeal. The appeal process would take approximately two months. The judgment cannot be enforced against J.P Morgan’s assets until the appeal is determined.
“Furthermore, as previously detailed, under current Russian law, JEMA’s assets (both securities and cash) held in S accounts in the name of J.P. Morgan Bank International (J.P. Morgan’s Russian subsidiary) cannot be used to satisfy the judgment.
“VTB commenced two further claims in Russia against the same nine J.P. Morgan defendants for $81.3m and $74.5m on 8th October 2024.
“We will continue to monitor the proceedings and update you on relevant developments.”
Comments from Eric Sanderson, JEMA’s chairman:
“I reiterate my comments made in the Company RNS announcement of 6th September 2024, that the latest information further adds to our existing concerns regarding the Company’s Russian assets. If JPMorgan Bank International (JPMBI), the sub custodian of the Company’s Russian assets in Russia, were to be declared insolvent the Manager has advised us that the Company’s Russian assets could not be serviced by them and due to the current sanction regime it would not be possible for JPMBI to transfer the Company’s Russian assets to another custodian. The Board will provide a further update once the court decision regarding the appeal is announced.”
