A new report reveals a stunning alleged attempt by Russia to bypass US sanctions. Investigators say Russia funneled a massive $5 billion through major American banks, JPMorgan Chase and Citigroup.
How the Scheme Worked (Allegedly)
The scheme allegedly involved using Gazprombank, a Russian state-controlled lender, to move the money. The funds were routed through US correspondent banks and ended up in Turkey, disguised as payments for a nuclear power plant. Specifically, $3 billion reportedly went through Citibank and $2 billion through JPMorgan.
The US Government’s Response
The massive transactions raised red flags with the Department of Justice (DOJ). They froze the $2 billion that went through JPMorgan and filed a lawsuit to seize the funds. However, the White House reportedly intervened, expressing concerns about potentially straining relations with Turkey, a key US ally in the Middle East.
No Accusations Against the Banks
It’s important to note that the DOJ isn’t accusing JPMorgan or Citigroup of any wrongdoing in facilitating these transfers. The investigation focuses on Russia’s alleged attempt to evade sanctions.
In short: Russia is accused of using a complex financial maneuver to move billions of dollars, potentially violating US sanctions. While the US government took action, political considerations appear to have played a role in the response.
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