U.S. Sanctions VTB Bank Over Iran Asset Transfers, Threatening Secondary Penalties
Updated
Updated · The New York Times · Sep 14
U.S. Sanctions VTB Bank Over Iran Asset Transfers, Threatening Secondary Penalties
3 articles · Updated · The New York Times · Sep 14
Summary
The Treasury Department on Monday added sanctions on Russia’s VTB Bank, accusing it of helping Iran move frozen assets and support bilateral trade.
Treasury said VTB built a ruble-rial settlement system through correspondent accounts, a mechanism Washington says helped Tehran bypass financial restrictions.
The move also warns banks still transacting with VTB that they could face secondary sanctions, potentially raising pressure on counterparties in countries including China.
VTB was already under U.S. sanctions tied to Russia’s 2022 invasion of Ukraine, and the new action extends Trump’s Operation Economic Outcast campaign to choke off Iran’s revenue streams.
Treasury is now rolling out Iran-related measures weekly and meeting global banks this week as it seeks broader cooperation to isolate Tehran from the financial system.