JP Morgan said on Thursday it was processing a payment from Russia's embassy in Kazakhstan to Russian insurance agency Sogaz, moving to ease tensions after Moscow accused the U.S. bank of "illegally" blocking the transaction.
Reuters reports that Russia's Foreign Ministry said on Tuesday the bank had blocked the payment "under the pretext of anti-Russian sanctions" and suggested the "unacceptable, illegal and absurd" act would have consequences for the U.S. embassy in Russia.
The confrontation threatened to further strain ties between Washington and Moscow, locked in the worst standoff since the Cold War over Russia's annexation of Ukraine's Crimea region.
'Following consultation with our regulators, we are processing this transaction', JP Morgan said in a statement.
Last month, Washington imposed sanctions, including visa bans and asset freezes, against several Russians close to President Vladimir Putin and against Rossiya Bank, which it said was the 'personal bank' for the leader's inner circle.
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