The US Treasury Department has sanctioned Russia’s VTB Bank Public Joint Stock Company, accusing the lender of helping Iran evade financial restrictions. The move aims to block tens of millions of dollars in transactions.

Sanctions Details

The department alleged that VTB, Russia’s second-largest bank, established correspondent relationships with sanctioned Iranian banks. This action builds on previous sanctions imposed in 2022 and early 2025 under the Biden administration. Treasury Secretary Scott Bessent stated that VTB is now among the most comprehensively sanctioned financial institutions globally.

Bessent had warned days prior that a large bank would face sanctions for aiding Iran. He emphasized that economic pressure on Tehran would continue until all transactions with the regime cease.

China Link and Trade Impact

Former Treasury sanctions official Miad Maleki described the move as a "China play." He noted that VTB has become a key channel for Russia-China trade since 2024, after major Chinese banks reduced exposure.

Maleki stated that Russian banks used Chinese accounts to settle Iranian trade payments totaling about $1.5 billion in the past 60 days. The new sanctions could expose Chinese banks dealing with VTB Shanghai to secondary sanctions tied to Iran.

Whistleblower Program

Bessent also announced the launch of the Treasury Whistleblower Program alongside Operation Economic Outcast. He urged global whistleblowers to provide actionable information, noting that eligible tipsters could receive rewards regardless of their location.