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US accuses Russian bank of aiding Iran’s sanctions evasion

The US Treasury said it imposed additional sanctions on VTB Bank for establishing correspondent banking ties with sanctioned Iranian banks.

US accuses Russian bank of aiding Iran’s sanctions evasion

The US Treasury has accused Russia's VTB bank of assisting Iran in evading sanctions, following the country's invasion of Ukraine in 2022. In a recent development, the agency has imposed more sanctions on VTB Bank, alleging that the institution has established correspondent relationships with sanctioned Iranian banks. The Treasury department has cautioned foreign financial institutions to sever all ties with VTB immediately, warning them against further dealings with the Russian bank.

Washington's economic pressure on Iran has intensified since the US and Israel launched strikes against Tehran in late February, leading to the latter's retaliation by blocking the Strait of Hormuz. This action has caused a surge in oil prices, affecting American households and putting financial strain on them in the lead-up to the US midterm elections.

Since US Treasury Secretary Scott Bessent vowed an "economic D-Day" on Iran, Washington has targeted other institutions, including the Turkish bank Golden Global. VTB had already faced US sanctions in 2022, with the Treasury Department imposing full blocking sanctions, rendering its US-held assets inaccessible to the Kremlin.

Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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