NEW YORK, April 18 (Reuters) - JPMorgan Chase ( JPM )

sued Russia's state-owned VTB Bank on Thursday to halt

its efforts to recover $439.5 million from an account that was

blocked after Russia invaded Ukraine and VTB was hit with

sanctions.

In a complaint filed in Manhattan federal court, JPMorgan ( JPM )

said VTB filed a lawsuit on Wednesday in Russia to recover the

money in "blatant breach" of its agreement to have disputes

addressed in New York.

The largest U.S. bank said American law prohibits it from

releasing the $439.5 million, and VTB, Russia's second-largest

bank, will try to seize its assets abroad if it prevails in the

Russia lawsuit.

"Thus, JPMorgan ( JPM ) is immediately facing a certain Russian

judgment exposing its assets to seizure, without timely or

assured recourse, simply because it is abiding, as it must, with

U.S. law," JPMorgan's ( JPM ) lawyers said.

VTB did not immediately respond to emailed requests for

comment.

The dispute adds to pressures facing VTB, which was added to

the U.S. Department of the Treasury's sanctions list in February

2022 following Russia's invasion of Ukraine.

In February, U.S. prosecutors charged VTB Chief Executive

Andrey Kostin with criminal sanctions violations related to two

yachts he owned, and a luxury home in Aspen, Colorado that he

sold.

Kostin had been under U.S. sanctions since 2018.

JPMorgan ( JPM ) said VTB opened its correspondent account in 2008

to process U.S. dollar transactions through the American

financial system. It is seeking an injunction barring VTB's

lawsuit, calling it necessary to avert "certain and irreparable

harm," and requiring that VTB honor its account agreement.

VTB sued JPMorgan ( JPM ) in the Arbitrazh court of the city of

Saint-Petersburg and Leningrad region after sending letters in

February and March demanding the return of the blocked funds,

court records show.

The case is JPMorgan Chase Bank NA v VTB Bank PJSC, U.S.

District Court, Southern District of New York, No. 24-02924.