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The US has imposed new sanctions on VTB Bank, one of Russia’s leading financial institutions, over allegations of helping Iran evade US sanctions.

US officials allege that VTB helped transfer billions of dollars of frozen assets to Iran and established banking relationships with sanctioned Iranian financial institutions.

Turkey’s official news agency Anadolu
According to the US State Department, VTB opened offices in Iran and formed business relationships with Iranian financial institutions facing sanctions. According to the department, the bank also played a role in diverting billions of dollars of Iranian assets.

The US administration said it is committed to closing the financial channels the Iranian government allegedly uses to finance terrorism and fuel regional instability.

According to the US Treasury Department, VTB assisted in the transfer of billions of dollars of frozen Iranian assets and increased its financial presence in Iran.

The US had already imposed sanctions on VTB Bank in 2022 after the start of the Russia-Ukraine war. Under existing sanctions, US citizens and institutions are prohibited from transacting with the bank. Through recent action, the US has also targeted the growing financial links between Iran and Russia.

US Treasury Secretary Scott Besant linked the action to the ‘Operation Economic Outcast’ initiative launched last month, saying that Treasury will continue to target individuals and entities that provide financial, technical or other assistance to the Iranian government to continue its activities.

The US administration says that identifying and isolating networks that help Iran is one of its priorities.

Washington alleges that such financial networks help the Iranian government continue its activities despite sanctions.