The United States on Monday imposed additional sanctions on Russia's VTB Bank, accusing the financial institution of supporting Iran's efforts to circumvent US sanctions. The move targets a bank that Washington had already subjected to sweeping restrictions following Russia's invasion of Ukraine in 2022.
The US Treasury Department said the latest measures were aimed at VTB's activities, including establishing correspondent banking relationships with Iranian financial institutions that are already under sanctions. Washington also warned foreign banks and financial institutions against conducting business with VTB, urging them to sever any remaining ties with the Russian lender, accordinf to AFP.
The action comes as the United States intensifies economic pressure on Iran amid the continuing conflict in the Middle East. Washington has been expanding sanctions against institutions accused of helping Tehran access international financial networks and evade restrictions.
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The latest action against VTB follows Treasury Secretary Scott Bessent's warning of an “economic D-Day” against Iran. Washington has since imposed sanctions on several other entities, including Turkish lender Golden Global, as part of its campaign to increase pressure on Tehran. The restrictions froze VTB's US-held assets and barred Americans from dealing with the institution.
The broader confrontation has also affected global energy markets. The conflict has seen Iran retaliate by restricting traffic through the Strait of Hormuz, a crucial route for global energy shipments, contributing to a sharp rise in oil prices. Higher crude prices have, in turn, pushed up gasoline costs in the United States, adding financial pressure on American consumers ahead of the US midterm elections, as per AFP.
At the time, the Treasury described VTB as one of the largest financial institutions it had ever subjected to such extensive blocking measures. The latest sanctions therefore add a new layer to Washington's existing restrictions on the Russian bank, this time over its alleged links to Iran's sanctions-evasion efforts.
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