US slaps new penalties on Russia's VTB Bank over Iran sanctions evasion
"VTB is now among the most comprehensively sanctioned financial institutions in the world," the U.S. Treasury said in a press release Sept. 14.
On September 14, the United States imposed additional sanctions on VTB Bank, a prominent Russian financial institution, for its involvement in aiding Iran in bypassing sanctions, according to the U.S. Treasury. This move is part of Operation Economic Outcast, a strategy devised by Treasury Secretary Scott Bessent to isolate Iran economically, which was initially unveiled in August during the commencement of the U.S. conflict with Iran.
The Office of Foreign Assets Control (OFAC) at the Treasury designated VTB Bank on September 14 for operating within Iran's financial sector, citing the bank's establishment of offices in Iran to foster trade and collaboration between Tehran and Moscow. VTB Bank has collaborated with sanctioned Iranian financial entities and facilitated the transfer of billions of dollars in frozen Iranian assets, as reported by the Treasury.
Under Operation Economic Outcast, the Treasury continues to target and obstruct individuals who offer material, technological, or financial assistance enabling Iran to maintain its terrorist activities. The new sanctions prohibit any VTB Bank assets held within the U.S. or by U.S. nationals, and entities linked directly or indirectly to VTB Bank are also subject to blockade.
Individuals breaching the sanctions measures face both criminal and civil penalties. VTB Bank had previously faced sanctions by the U.S. in 2022 and 2025, linked to Russia's all-out war against Ukraine. Now, VTB Bank stands among the most extensively sanctioned financial institutions globally, as highlighted by the U.S. Treasury in a press release.
The intensification of economic and military ties between Russia and Iran has been evident since the inception of the full-scale war, with Tehran supplying Moscow with Shahed drones for attacks against Ukraine. In response, Russia has pledged to aid Iran during its conflict with the U.S. Russian President Vladimir Putin conversed with his Iranian counterpart Masoud Pezeshkian on September 1, assuring Moscow's readiness to provide the necessary support to Iran.
However, Bessent has previously downplayed Russia's aid to Iran, stating to the conservative news outlet Newsmax that Russia does not extend direct financial assistance to Iran.
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