HY Energy Group Co. is suing JPMorgan Chase and Citigroup in Shanghai and Beijing. The Chinese energy firm alleges the banks illegally froze payments intended for a third party.
The dispute involves a $13.5 million transfer via JPMorgan. Citibank blocked a separate $27 million transfer. HY Energy Group claims the banks froze these funds in mid-2023.
The intended recipient, Hong Kong-based China Oil and Petroleum Co., officially joined the U.S. sanctions list in February 2024. U.S. authorities allege the firm acted as a front for Iran’s Islamic Revolutionary Guard Corps’ Quds Force.
The legal battle underscores the regulatory pressure on global financial institutions operating between Washington and Beijing.