The Strategist

Ukraine to sue JPMorgan and Citigroup

07/18/2022 - 09:45

JPMorgan, HSBC, Citigroup, and Credit Agricole have all been ordered by Ukraine to cut any relationships with businesses that deal in Russian oil. Kiev swore not to let the banks finance the nation's restoration, and threatened them with prosecution by the International Criminal Court.

Matt Buck
Matt Buck
Ukraine has charged many significant US and European banks with backing Russia and demanded that they cut links with firms that deal in Russian oil, according to a letter from Oleg Ustenko, the economic advisor to the Ukrainian president, to JPMorgan Chase, Citigroup, HSBC, and Credit Agricole.

Ustenko claimed that the banks were "prolonging" the conflict by giving loans to businesses that import oil from Russia, and made a commitment that they would not be permitted to support the reconstruction of Ukraine. Additionally, he requested that banks divest their holdings in Russian oil and gas firms.

The FT notes that HSBC and Credit Agricole own stock in Russian Rosneft and Gazprom, respectively. Citigroup finances Vitol and Lukoil, trades in Russian oil. The investment fund of JPMorgan owns shares of Gazprom, Rosneft, and Sberbank in addition to lending money to Vitol.

Separately, Ustenko questioned JPMorgan's forecast that if a price cap on Russian energy was created, oil prices might rise to a "stratospheric $380 a barrel."