US Sanctions Russia’s VTB Bank Over Iran Sanctions Evasion, Banking Ties
By The Media Line Staff
The US Treasury Department sanctioned VTB Bank Public Joint Stock Company on Tuesday over its financial dealings with Iran, accusing one of Russia’s largest financial institutions of helping Tehran evade sanctions and maintain banking relationships with sanctioned Iranian institutions.
VTB Bank was designated under Executive Order 13902 by the Office of Foreign Assets Control, which targets sectors of Iran’s economy, including its financial sector. This action was taken as part of Operation Economic Outcast, Treasury’s campaign to cut Iran off from international sources of financing.
“Under Operation Economic Outcast, Treasury will continue to target and disrupt those who provide material, technological, or financial support that allows the Iranian regime to sustain its terrorist enterprise,” Secretary of the Treasury Scott Bessent said. “Treasury will not tolerate any support to the regime and will continue to identify, expose, and isolate Iran’s enablers.”
VTB Bank has opened offices in Iran in recent years as Russia and Iran sought closer banking coordination and expanded bilateral trade, Treasury said. During the past three years, the bank established correspondent relationships with sanctioned Iranian financial institutions and began taking steps to expand its presence in Tehran in January 2025.
Treasury said VTB also worked to move billions of dollars in frozen Iranian assets and developed a national-currency settlement system using correspondent accounts denominated in Iranian rials and Russian rubles.
Bessent announced Operation Economic Outcast on August 24, 2026, calling the initiative “Economic D-Day.” The campaign targets networks, financial channels, and facilitators used by Iran to smuggle oil, evade sanctions, and finance terrorism.
Tuesday’s designation follows recent Treasury actions against banks in Turkey and UAE. Treasury is also meeting with global financial institutions this week to provide information aimed at disrupting revenue and procurement networks connected to the Iranian regime, the IRGC, Iran’s terrorist proxies and their enablers.
VTB Bank was previously designated by OFAC on January 15, 2025, under Executive Order 13662, and on February 24, 2022, under Executive Order 14024, due to its connections to Russia’s financial sector and government.
Under Tuesday’s action, VTB property and interests in property under US jurisdiction are blocked, while foreign financial institutions conducting certain transactions involving the bank could face secondary sanctions.
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