US sanctions Russia's VTB Bank for allegedly helping Iran evade sanctions

The US on Monday sanctioned VTB Bank, one of Russia’s largest financial institutions, accusing it of helping Iran evade sanctions.

"VTB Bank opened offices in Iran, built banking ties with sanctioned Iranian financial institutions, and worked to move billions of dollars in Iranian assets," the State Department said in a statement.

"The United States remains steadfast in cutting off the financial lifelines that allow the Iranian regime to fund terrorism, destabilize the region, and threaten US economic security," it added.

VTB was already under US sanctions imposed in 2022 following the start of the Russia-Ukraine war. The existing measures prohibit US persons and institutions from conducting transactions with the lender.

The US Treasury Department said VTB helped transfer billions of dollars in frozen Iranian assets and has expanded its presence in Iran.

"Under Operation Economic Outcast, Treasury will continue to target and disrupt those who provide material, technological, or financial support that allows the Iranian regime to sustain its terrorist enterprise," Treasury Secretary Scott Bessent said in a statement, referring to an initiative announced last month.

"Treasury will not tolerate any support to the regime and will continue to identify, expose, and isolate Iran's enablers," he added.