JPMorgan & Citigroup Involved in Alleged $5 Billion Russian Sanctions Evasion Scheme
A recent investigation by the U.S. Department of Justice (DOJ) has uncovered an alleged scheme in which Russia funneled $5 billion through major financial institutions, JPMorgan Chase and Citigroup, in an attempt to bypass U.S. sanctions. According to a report from the Wall Street Journal, sources familiar with the matter indicate that Russia utilized a state-controlled bank to discreetly channel billions of dollars through U.S. correspondent banks, ultimately transferring the funds to Turkey under the guise of financing a nuclear power project.
Authorities believe that Russia employed unsanctioned entities, including Gazprombank—a state-owned financial institution that facilitates European fuel imports—to establish an offshore dollar reserve at Turkey’s state-owned Ziraat Bank. Investigators discovered that Gazprombank transferred $3 billion via Citibank and another $2 billion through JPMorgan Chase. The substantial transactions raised red flags within the DOJ, leading to the blocking and freezing of JPMorgan’s $2 billion transfer.
While the DOJ initiated a civil forfeiture case last year to seize the frozen funds, reports suggest that the White House intervened, advising against further action due to potential diplomatic repercussions with Turkey, a key U.S. strategic partner in the Middle East. Notably, JPMorgan and Citigroup are not under investigation for any misconduct in processing
