The United States has announced fresh sanctions against Russia’s VTB Bank, alleging that the institution played a central role in helping Tehran bypass American restrictions and transfer billions of dollars in Iranian funds.

VTB, already subjected to comprehensive blocking measures in 2022 following the escalation of the Ukraine conflict, now faces additional penalties specifically targeting its operational links with Iran.

The US Treasury Department stated that the new measures focus on VTB’s correspondent relationships with sanctioned Iranian banks. Washington has also issued a stern advisory to global banking institutions, urging them to cut all ties with the Russian financial entity to avoid exposure to American restrictions.

The State Department revealed that VTB had established physical branches inside Iran and forged financial connections with penalised Iranian entities. Officials accused the bank of actively working to move billions of dollars in Iranian assets, thereby sustaining Tehran’s ability to fund terrorism, destabilise the region, and threaten US economic security.

American officials emphasised that any effort to help Iran evade sanctions would carry serious consequences. The announcement serves as a warning to states and financial organisations considering similar partnerships, reinforcing Washington’s determination to isolate Tehran’s financial networks.

The timing of the sanctions coincides with heightened financial pressure on Iran amid the ongoing conflict in West Asia. Hostilities intensified after joint American and Israeli military actions against Iran in late February, which prompted Tehran to restrict maritime traffic through the Strait of Hormuz, a critical artery for global energy transit.

VTB was among the major Russian financial organisations penalised in 2022, when the Treasury Department imposed full blocking sanctions.

These measures froze assets within US jurisdiction and denied the Kremlin access to American financial systems. At the time, VTB was described as one of the largest financial institutions ever blocked by the Treasury.

The latest sanctions are part of a broader American campaign to tighten economic constraints on Iran. US Treasury Secretary Scott Bessent characterised the initiative as an “economic D-Day”, underscoring Washington’s intent to dismantle Tehran’s financial lifelines.

The campaign has also targeted external entities such as Turkey’s Golden Global Bank, reflecting a wider strategy to pressure Iran through its international partners.

The State Department reiterated that the US will continue to deploy diplomatic and economic instruments to isolate Tehran. Washington has called upon international partners to assist in severing the financial channels that sustain the Iranian administration, reinforcing its commitment to curbing Iran’s regional influence.

ANI