The Treasury Department on Monday imposed additional sanctions on Russia’s VTB Bank over allegations that it was helping Iran move frozen assets and facilitate trade between the two countries.
The sanctions are the latest part of the Trump administration’s Operation Economic Outcast initiative that aims to strangle Iran’s economy. The new sanctions could expose other countries that have continued to do business with VTB, such as China, to secondary sanctions from the United States. The sanctions increase the pressure on the financial institution, which is already under sanctions that the United States imposed in 2022 and 2025 over Russia’s invasion of Ukraine.
“Treasury will not tolerate any support to the regime and will continue to identify, expose and isolate Iran’s enablers,” Treasury Secretary Scott Bessent said in a statement.
The Treasury Department has thus far held back from directly imposing sanctions on the Chinese financial institutions that still work with Iran.
Mr. Bessent foreshadowed the move last week when he said that another large bank would face sanctions. The Treasury Department is rolling out new measures on a weekly basis as it looks to cut Iran off from the global economy. Last month, the Treasury targeted United Arab Emirates branches of Egypt’s Banque Misr, which it said has helped Iran gain access to U.S. dollars.
The Treasury Department warned on Monday that financial institutions that continue to engage in transactions with VTB could also face sanctions. Officials from the department are meeting with global financial institutions this week to discuss ways to shut down Iranian revenue streams.
According to the Treasury Department, VTB has been helping Iran move frozen assets and created a settlement system for national currencies through correspondent accounts in Iranian rials and Russian rubles to help facilitate trade between the two countries.
