US Sanctions Russia’s VTB Bank Over Alleged Iran Support

The United States has imposed fresh sanctions on Russia’s second-largest bank, VTB Bank, accusing the state-controlled lender of helping Iran circumvent Western sanctions.

The US Treasury Department said VTB had expanded its financial cooperation with Iran by opening banking offices in the country, establishing relationships with sanctioned Iranian financial institutions and creating financial channels to facilitate trade between Moscow and Tehran.

The new measures increase the risk of secondary sanctions for foreign banks and businesses that continue to conduct transactions with VTB.

VTB was already subject to extensive US sanctions imposed in February 2022 following Russia’s full-scale invasion of Ukraine. The Treasury Department said the latest action makes the Russian bank one of the most heavily sanctioned financial institutions in the world.

According to the Treasury, VTB has established systems for settling transactions in Iranian rials and Russian roubles and has sought to facilitate the movement of billions of dollars in frozen Iranian assets.

US Treasury Secretary Scott Bessent said Washington would continue targeting individuals and institutions that provide financial, technological or material support to Iran.

The latest sanctions are part of the Trump administration’s broader campaign to increase economic pressure on Tehran amid the ongoing conflict involving Iran and efforts to reopen the Strait of Hormuz, a major route for global energy shipments.

The United States has recently imposed additional sanctions on Iranian oil exports, shipping networks, weapons procurement channels, financial institutions, digital asset platforms and aviation links.

The Treasury also said it was engaging with financial institutions around the world to warn them about the risks of secondary sanctions and encourage them to cut off financial networks linked to Iran and its alleged support networks.

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