The U.S. Department of Treasury has designated VTB Bank, one of Russia's largest financial institutions, under sanctions for assisting Iran in evading U.S. economic restrictions.
VTB Bank opened offices in Iran in recent years to expand banking coordination with the Iranian regime and increase bilateral trade, according to the Treasury. Over the past three years, VTB established correspondent banking relationships with sanctioned Iranian financial institutions. The bank began taking steps to increase its presence in Tehran in January 2025.
VTB created a settlement system for national currencies through correspondent accounts in Iranian rials and Russian rubles, with the goal of increasing bilateral trade between Russia and Iran. The bank also took steps to move billions of frozen Iranian assets, according to the Treasury.
The designation was made pursuant to Executive Order 13902, which targets certain sectors of the Iranian economy, including Iran's financial sector. VTB had previously been designated by the Treasury in February 2022 for being owned or controlled by the Russian government and in January 2025 for operating in Russia's financial services sector.
The action is part of Operation Economic Outcast, announced by Treasury Secretary Scott Bessent on August 24, 2026, aimed at severing remaining economic support for the Iranian regime. The Treasury warned that any entity facilitating money laundering or sanctions evasion on behalf of Iran risks being cut off from the U.S. financial system, and warned of accelerated enforcement against foreign financial institutions.
Recent Treasury actions have also targeted banks in Turkey and the United Arab Emirates.