US Sanctions VTB Bank for Helping Iran Evade Sanctions

The US Treasury has sanctioned VTB Bank, Russia's second-largest bank, for helping Iran evade sanctions as part of Operation Economic Outcast.

The designation marks a significant escalation in the scope of the operation, which now includes one of Russia's most systemically important financial institutions.

VTB was already under extensive US sanctions over Russia's war in Ukraine and has been accused of establishing relationships with sanctioned Iranian banks, expanding its operations in Tehran, creating financial channels for Russia-Iran trade, and helping move billions of dollars in frozen Iranian assets.

The Treasury Secretary had warned Russian banks and traders tied to Iranian oil could face sanctions if Moscow refused to cooperate with Washington's request to pressure Iran on the Strait of Hormuz. The VTB designation comes after the Kremlin said solving global energy market problems requires lifting sanctions on all oil suppliers and guaranteeing shipping security.