Major US Banks Suspected of Financial Transactions with Russian Companies... "Government Demands Continued Relations"

Suspicion of Transaction Requests to Executive Branch Bank
Providing Financial Services to Russian Strategic Companies

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Allegations have emerged that the U.S. administration demanded major American banks such as JP Morgan Chase to continue financial transactions with certain Russian companies.

Bloomberg reported on the 7th (local time) that during a congressional hearing held last September, Democratic Representative Brad Sherman questioned the CEOs of JP Morgan Chase and Citigroup about whether they were conducting transactions with Russian companies.

Representative Sherman claimed that JP Morgan Chase continues to do business with the Russian state-owned energy company Gazprom PJSC and that they are exploiting loopholes in the sanctions against Russia to maintain their operations.

Earlier, after Russia invaded Ukraine in February, the U.S. ordered major banks not to provide financial services such as payment for imports and exports, overseas loans, and investments to Russian companies and individuals.

In response, Citigroup reduced its investment in Russia from $9.8 billion earlier this year to $7.9 billion as of last September. Additionally, six months after the outbreak of the Russia-Ukraine war, in August, Citigroup made the final decision to withdraw from its business in Russia.

Jamie Dimon, CEO of JP Morgan Chase, who attended the hearing, stated, "We simply followed the instructions as requested by the U.S. government," asserting that the U.S. administration had requested the continuation of transactions.

Bloomberg, citing anonymous sources, revealed, "Contrary to Congress advocating for sanctions against Russia, the Treasury and State Departments are working behind the scenes to have major banks continue transactions with Russia’s key companies." The administration reportedly requested major banks to continue providing basic services such as dollar payments and transfers to Russian companies like Uralkali and PhosAgro, which are excluded from sanctions due to their strategic value.

Bloomberg explained, "The Biden administration has repeatedly stated that it hopes funds flow to economic sectors not subject to sanctions against Russia," adding, "It appears the administration made these efforts out of concern that sanctions against Russia could potentially trigger a global economic crisis."

As the allegations spread, the Treasury Department clarified that it issued guidelines to the banking industry to continue transactions in humanitarian aid, energy, and agriculture sectors.

This content was produced with the assistance of AI translation services.