U.S. Treasury Department sanctions Russian banking giant VTB Bank

According to the Treasury Department, the bank helped Iran evade American sanctions and move billions of dollars in frozen Iranian assets.

VTB Bank began expanding its operations in Tehran as early as January 2025, publicly framing the move as an effort to boost trade between Russia and Iran.

Foreign financial institutions that continue to deal with VTB will risk secondary sanctions. The bank has been under U.S. sanctions since February 24, 2022, for operating under the Russian government, and faced further restrictions on January 15, 2025, for operating in Russia’s financial sector.

Russia is increasingly financing its war against Ukraine by quietly issuing rubles, forcing state-owned banks to buy federal loan bonds as market funding dries up. The Central Bank of Russia is stepping in to provide the banks with the necessary liquidity to sustain the practice.

Russia's state-owned VTB Bank is launching large-scale staff cuts amid plunging profits, rising loan defaults, and a collapse of its shares to historic lows on the Moscow Exchange.