The United States sanctioned VTB Bank over its financial ties with Iran. The U.S. Treasury Department said the decision was taken because the bank had helped Iran evade sanctions.
VTB Bank established correspondent banking relationships with sanctioned Iranian banks and became involved in activities aimed at helping Iran evade sanctions, the Treasury said. Following the decision, the bank joined the ranks of the world’s most heavily sanctioned financial institutions.
Warning to foreign institutions
The United States warned that foreign financial institutions continuing to conduct transactions with VTB Bank would face a higher risk of sanctions. These institutions were urged to end their dealings with the bank immediately.
VTB’s activities in Iran
In recent years, VTB Bank opened banking offices in Iran and sought to boost trade between the two countries by improving banking coordination with the Iranian administration, the Treasury said. The bank established correspondent banking relationships with sanctioned Iranian financial institutions over the past three years and took steps in January 2025 to expand its presence in Tehran.
The statement alleged that VTB Bank had taken steps to facilitate the transfer of a portion worth billions of dollars of frozen Iranian assets. It also alleged that the bank had created a payment system enabling transactions in national currencies by using correspondent accounts denominated in Iranian rials and Russian rubles.
Bessent: Those providing support will be targeted
U.S. Treasury Secretary Scott Bessent said that, as part of the economic exclusion campaign against Iran, the United States would continue targeting those providing material, technological or financial support for Iran’s activities that the United States designates as terrorism.
Bessent said the U.S. Treasury Department would not tolerate any support for the Iranian administration. He stressed that the policy of identifying, exposing and isolating its supporters would continue.
