The US Treasury Department added VTB, one of Russia’s largest financial institutions, to its sanctions list over allegations that it maintained financial ties with Iran and helped circumvent sanctions.
The department said on Monday that VTB had established connections with sanctioned Iranian banks through the interbank messaging system. It alleged that these ties contributed to activities facilitating sanctions evasion and placed the bank among the financial institutions facing the highest sanctions risk worldwide.
The US Treasury Department warned that foreign financial institutions continuing to conduct transactions with VTB could face secondary sanctions. The department urged those institutions to immediately sever their ties with the Russian bank.
VTB’s moves in Iran
The department said VTB had opened offices in Iran in recent years and sought to expand trade between the two countries by formalizing banking coordination with Tehran.
VTB established correspondent banking relationships with sanctioned Iranian financial institutions over the past three years and, starting in January 2025, took steps to expand its presence in Tehran, the department said.
The US Treasury Department also alleged that VTB had attempted to facilitate the transfer of billions of dollars from frozen Iranian assets. It further alleged that the bank had established a payment system enabling transactions in Iranian rials and Russian rubles to increase bilateral trade.
Bessent targets financial support
US Treasury Secretary Scott Bessent said the United States would continue targeting financial, technological or material support that enables Iran to pursue activities Washington characterizes as terrorism.
Bessent said the department would show no tolerance for any support provided to Tehran and would continue its policy of identifying, exposing and isolating those who provide it.
