US adds Russia's VTB Bank to sanctions list for allegedly helping evade Iran sanctions

The US Department of the Treasury has added VTB Bank, one of Russia's leading financial institutions, to its sanctions list as part of an "economic exclusion operation" against Iran.

In a statement, the department alleged that VTB Bank established correspondent banking relationships with sanctioned Iranian banks and played a role in activities aimed at helping Iran evade sanctions.

The statement noted that VTB Bank is now among the financial institutions subject to the most comprehensive sanctions in the world, warning that foreign financial institutions that continue to conduct transactions with the bank could face a higher risk of sanctions. These institutions were called upon to terminate their relationships with VTB Bank.

According to the US Department of the Treasury, VTB Bank aimed to formalize banking coordination between the two countries and expand trade by opening bank offices in Iran in recent years. The department argued that the bank established correspondent banking relationships with sanctioned Iranian financial institutions over the last three years and took steps to increase its presence in Tehran in January 2025.

The statement also alleged that VTB Bank took steps to transfer billions of dollars of frozen Iranian assets and created a payment system that allows transactions in national currencies through correspondent accounts in Iranian rials and Russian rubles.

US Secretary of the Treasury Scott Bessent stated that Washington will continue to target individuals and institutions that provide material, technological, or financial support to Iran. Bessent expressed that the US Department of the Treasury will not tolerate support for the Iranian regime.