US accuses Russian bank of aiding Iran’s sanctions evasion

The US on Monday accused Russia’s VTB bank of supporting Iran’s efforts to evade sanctions, taking aim at an institution it already blocked over Moscow’s invasion of Ukraine in 2022.

In a symbolic move, the US treasury department said it has now imposed additional sanctions against VTB Bank for actions “including establishing correspondent relationships with sanctioned Iranian banks.”

The agency warned foreign financial institutions against dealing with VTB, urging them to cut ties immediately.

Washington has sought to step up economic pressure on Tehran as the war in the Middle East enters its seventh month since the US and Israel launched strikes at Iran in late February.

The conflict saw Tehran retaliate by choking off the Strait of Hormuz, a key waterway for energy transit, sending oil prices soaring.

Prices at US gasoline pumps have in turn surged, keeping American households under growing financial pressure weeks ahead of US midterm elections.

Since US treasury secretary Scott Bessent vowed an “economic D-Day” on Iran, Washington has imposed sanctions on other institutions, including Turkish bank Golden Global.

VTB, however, already faced US sanctions in 2022, with the Treasury Department imposing “full blocking sanctions” on the bank, meaning that its US-held assets would be frozen and inaccessible to the Kremlin.

At the time, the department added that VTB was “one of the largest financial institutions Treasury has ever blocked”.