US Sanctions Russia’s VTB Bank Over Alleged Iran Links

The United States has imposed fresh sanctions on Russia’s VTB Bank, accusing the country’s second-largest lender of helping Iran evade Western sanctions and establish financial channels to support trade between Moscow and Tehran.

The U.S. Treasury Department announced the measures on Monday under an initiative known as Operation Economic Outcast, which Washington says is aimed at disrupting financial networks supporting the Iranian government.

According to the Treasury, VTB established banking operations in Iran and developed correspondent relationships with Iranian financial institutions already under U.S. sanctions. The department also accused the Russian lender of taking steps to facilitate the movement of billions of dollars in frozen Iranian assets.

Treasury officials said VTB had expanded its financial cooperation with Iran as part of efforts to strengthen economic ties between the two countries. The bank also established mechanisms involving Iranian rials and Russian rubles to facilitate bilateral trade, according to the U.S. government.

U.S. Treasury Secretary Scott Bessent said Washington would continue targeting entities that provide financial or other support to Iran, warning institutions involved in such activities that they could face further sanctions.

The latest measures add to the extensive sanctions already imposed on VTB. The bank was first hit by major U.S. sanctions in 2022 following Russia’s full-scale invasion of Ukraine and has faced additional restrictions since then.

The Treasury said VTB is now among the most comprehensively sanctioned financial institutions in the world.

Washington also warned foreign financial institutions that continue doing business with VTB that they could face increased exposure to U.S. secondary sanctions. The warning is intended to discourage banks and companies outside the United States from maintaining financial relationships with the Russian lender.

The action comes as the Trump administration intensifies economic pressure on Tehran, targeting financial institutions, oil networks, shipping companies and other entities accused of helping Iran generate revenue or circumvent international restrictions.

The sanctions also highlight the growing financial cooperation between Russia and Iran, both of which have faced extensive Western sanctions and have increasingly sought alternative channels for trade and financial transactions.

VTB has not been accused in a U.S. court of wrongdoing through these sanctions; the allegations are part of the U.S. Treasury’s basis for imposing the measures.

The latest action is expected to further complicate VTB’s ability to conduct international transactions and could increase pressure on financial institutions that maintain links with the Russian bank.