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 15th 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