Jamie Dimon, the CEO of JP Morgan, has warned that the bank’s exposure to Russia could cost it up to $1 billion (£763 million), as he calls on the US government to send more troops to Ukraine, restructure supply chains, and launch a new “Marshall plan” to ensure energy supply.

Dimon urged Joe Biden’s administration to take a stronger stance against the “grave new geopolitical realities” emerging after Russia’s invasion of Ukraine in his widely read annual letter to investors, saying it was up to democratic nations to take a stand “against all forms of evil.”

Dimon, one of the most high-profile executives to speak out about the conflict thus far, also detailed the bank’s potential $1 billion loss due to its direct exposure to Russia. Last month, JP Morgan announced it was closing its Russia operations, which employ about 160 people.

“As I write this letter, the conflict in Ukraine has been raging for well over a month, resulting in a significant refugee crisis. We don’t know what will happen in the end, but the conflict in Ukraine and the sanctions against Russia are already having a significant economic impact. They’ve wreaked havoc on global oil, commodity, and agricultural markets,” he explained.

Dimon, on the other hand, believes the war’s broader implications, such as the “potential restructuring of the global order,” are far more important.

“We must confront the Russia challenge with bold solutions,” he said, noting that the war could have a long-term impact on geopolitics.

Dimon urged the US to develop a Marshall plan to reduce the west’s reliance on Russian fossil fuels, referring to Harry Truman’s 1948 aid program that aided Western Europe’s recovery from WWII. “Our European allies, who rely heavily on Russian energy, need our assistance,” he said. “As we are seeing – and know from past experience – oil and gas supply can be easily disrupted, either physically or by additional sanctions, significantly impacting energy prices. National security demands energy security for ourselves and for our allies overseas,” he said.

Tensions are already rising over Russian President Vladimir Putin’s demand that all gas purchased by foreign countries be paid for in roubles starting April 1. So far, the G7 countries have turned down Moscow’s request.

The banking chief added that a larger US military budget and more troops deployed to Nato’s borders “as appropriate” should be part of the US response, as well as billions of dollars pledged to rebuild Ukraine and support migrants in Europe.

“America must be prepared for the possibility of a protracted conflict in Ukraine with unforeseeable consequences.” We should plan for the worst-case scenario while hoping for the best. The letter urged, “We must view this as a wake-up call.”  “We need to make this a permanent, long-lasting stand for democratic ideals and against all forms of evil.”

Dimon also urged Biden’s administration to “intensify sanctions,” despite the fact that such a move would have economic consequences far beyond Russia’s borders. “This, combined with the unpredictable nature of war and the uncertainty surrounding global commodity supply chains, creates a potentially explosive situation,” Dimon continued.

Analysts at JP Morgan predict that the eurozone’s GDP will grow by about 2% in 2022, rather than the 4.5 percent expected before the invasion of Ukraine. Meanwhile, GDP growth in the United States is expected to be only 2.5 percent in 2022, compared to previous estimates of 3 percent.

He went on to say that the US should restructure its supply chains to ensure that it was no longer reliant on countries with “different strategic interests” to supply materials deemed critical to national security, such as rare earths.

Instead, the US should only rely on domestic firms or “completely friendly allies” for key goods and services.

“We cannot and should not ever be reliant on processes that can and will be used against us, especially when we are most vulnerable,” Dimon said.