UPDATE 2-JP Morgan to process payment for Russian embassy, easing tension

UPDATE 2-JP Morgan to process payment for Russian embassy, easing tension

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," JPMorgan 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.

The destination for the embassy payment was insurance agency Sogaz, which is 48.5 percent owned by Abros, a wholly-owned subsidiary of Bank Rossiya.

Industry consultants in Moscow say financial institutions are unclear about how to apply the new rules in some situations, such as when dealing with subsidiaries of companies which have either been sanctioned or which have shareholders that have been punished.

Several Western investors and their banks are facing quandaries over individual situations.

Putin bitch slaps JPM...ha ha ha