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yesterday

U.S. Sanctions Russia’s VTB Bank Under Iran Executive Order

Treasury says the move tightens pressure on Tehran’s funding by exposing banks that deal with VTB to higher secondary‑sanctions risk.

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Photo: Thuan Vo / Pexels
A woman walks past a branch of VTB Bank in Moscow on Oct. 3, 2023.

Overview

  • The Treasury’s Office of Foreign Assets Control placed VTB on the SDN list in a designation announced Sept. 14 that freezes U.S.-jurisdiction assets and bars transactions by U.S. persons.
  • Authorities cited Executive Order 13902 as the new Iran-specific legal basis, layering this on top of earlier U.S. sanctions from 2022 and 2025 and leaving no general wind-down licenses.
  • U.S. officials allege VTB opened branches in Iran, built correspondent ties with sanctioned Iranian banks, created rials–rubles settlement channels, and moved billions in frozen Iranian assets.
  • Treasury has warned third‑country banks that continued dealings with VTB carry elevated secondary‑sanctions exposure and has begun direct outreach with global financial institutions to enforce compliance.
  • Analysts and diplomats say the step raises enforcement and diplomatic risks, including potential spillovers for banks in China and energy markets, and could complicate efforts to remove layered sanctions in the future.