Russian Court Order Update

JPMorgan Emerging EMEA Securities

13 December 2024

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EMERGING EUROPE, MIDDLE EAST & AFRICA SECURITIES PLC ('the Company' or 'JEMA')

Legal Entity Identifier: 549300II3MHI98ZLVH37

Russian Court Order - Update

Further to the Board's previous RNS announcements regarding the Russian court order, the Board announces the following update from the Company's Manager which has also been provided to The Bank of New York Mellon (International) Limited as the Company's Depositary (in italics):

As previously notified, VTB Bank filed a lawsuit against eight J.P. Morgan legal entities and JPMorgan Emerging Europe, Middle East & Africa Securities plc (JEMA) on 17th April 2024 in Russia seeking to recover $439.5 million held with J.P. Morgan in New York. At the main hearing on 16th October 2024, the Russian court awarded judgment against J.P. Morgan. J.P. Morgan appealed this decision, and the Russian court has scheduled the appeal hearing for 26th February 2025.  No seizure of J.P. Morgan's assets under the judgment can take place prior to the appeal hearing.

In the two lawsuits filed by VTB Bank in Russia claiming $81.3 million and $74.5 million against the same eight J.P. Morgan legal entities and JPMorgan Emerging Europe, Middle East & Africa Securities plc (JEMA) that are defendants in the above-mentioned claim, the preliminary hearings were postponed to 15^th January 2025 and 18th December 2024, respectively.

We will provide further details as the situation develops.

In response to the above information, Eric Sanderson, the Chairman of the Company commented that:

"Following the confirmation of the appeal hearing date in respect of the Company and the Company's sub-custodian (JPMorgan Bank International ('JPMBI')), which are both  included as defendants in the VTB case referred to above, I reiterate some of the information disclosed in previous RNS announcements in relation to the impact that these unprecedented circumstances may have on the Company's Russian assets which have created much uncertainty of these  values ever being realisable by the Company. The Board also note that the Russian court continues to allow VTB to include the Company as a defendant in their case in addition to eight J.P.Morgan legal entities. 

RNS of 6th September 2024 - Explanation Provided by the Company's Custodian ('J.P. Morgan')

This could result in the insolvency of JPMBI and impact JPMBI's ability to continue to operate under instruction from J.P. Morgan. As such, J.P. Morgan may be unable to continue to provide safekeeping, settlement and asset servicing of our clients' Russian securities in the same manner as it does currently. Additionally this may impact our clients' RUB cash.

Whilst the specifics of any impact of these claims or their enforcement on clients would need to be considered on a case-by-case basis, they may constitute a Force Majeure and / or Country Risk event (as defined in the contracts that clients have with J.P. Morgan).

The Company's RNS announcements are available to view on the London Stock Exchange website:

https://www.londonstockexchange.com/stock/JEMA/jpmorgan-emerging-europe-middle-east-africa-securities-plc/analysis

The Company's reports and financial statements and other information about the Company are available to view on the Company's website: www.jpmeemeasecurities.com

The Board will provide a further update once the court decision is announced."

13th December 2024

For further information:

Paul Winship, Neil Martin, JPMorgan Funds Limited             0800 20 40 20

Hugh Jonathan, Deutsche Numis                                           020 7260 1000

 

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