US Expands Sanctions on VTB, Second Largest Russian Bank

The move, which targeted a bank that is already under U.S. sanctions, was part of the Trump administration’s Operation Economic Outcast initiative.

· New U.S. sanctions: The U.S. Treasury Department has imposed additional sanctions on Russia’s VTB Bank, accusing it of helping Iran move frozen assets and facilitating bilateral trade.

· Operation Economic Outcast: The action is part of the Trump administration’s “Operation Economic Outcast”, aimed at cutting Iran off from the global financial system and restricting its economic resources.

· VTB already sanctioned: VTB has been under U.S. sanctions since 2022, with further measures imposed in 2025 over Russia’s invasion of Ukraine.

· Iran–Russia payment mechanism: According to Treasury, VTB established a settlement system using Iranian rials and Russian rubles through correspondent accounts to facilitate trade between Iran and Russia.

· Frozen Iranian assets: The U.S. alleges that VTB has also helped Iran move frozen assets, increasing the bank’s exposure to additional U.S. measures.

· Secondary-sanctions warning: The Treasury warned that financial institutions and other entities continuing transactions with VTB could themselves face U.S. sanctions.

· China exposure: The measures could increase pressure on Chinese institutions and companies that continue doing business with VTB or Iran, although the U.S. has so far refrained from directly sanctioning Chinese financial institutions dealing with Iran.

· Weekly sanctions campaign: Treasury is reportedly introducing new Iran-related measures on a weekly basis to disrupt Iranian revenue and financial channels.

· Previous UAE action: Last month, Treasury targeted UAE branches of Egypt’s Banque Misr, alleging that they helped Iran obtain access to U.S. dollars.

· Global banking pressure: U.S. Treasury officials are meeting international financial institutions to develop measures aimed at blocking Iranian revenue streams and isolating Iran from international finance.

· Statement by Bessent: Treasury Secretary Scott Bessent said the U.S. would continue to identify, expose and isolate entities supporting the Iranian government.

· Key implication: The action expands U.S. pressure beyond Iran itself to Russian banks and potentially third-country financial institutions, raising the risk of secondary sanctions for banks facilitating Iran-related trade.

[ABS News Service/15.09.2026]

The Treasury Department on Monday imposed additional sanctions on Russia’s VTB Bank over allegations that it was helping Iran move frozen assets and facilitate trade between the two countries.

The sanctions are the latest part of the Trump administration’s Operation Economic Outcast initiative that aims to strangle Iran’s economy. The new sanctions could expose other countries that have continued to do business with VTB, such as China, to secondary sanctions from the United States. The sanctions increase the pressure on the financial institution, which is already under sanctions that the United States imposed in 2022 and 2025 over Russia’s invasion of Ukraine.

“Treasury will not tolerate any support to the regime and will continue to identify, expose and isolate Iran’s enablers,” Treasury Secretary Scott Bessent said in a statement.

The Treasury Department has thus far held back from directly imposing sanctions on the Chinese financial institutions that still work with Iran.

Mr. Bessent foreshadowed the move last week when he said that another large bank would face sanctions. The Treasury Department is rolling out new measures on a weekly basis as it looks to cut Iran off from the global economy. Last month, the Treasury targeted United Arab Emirates branches of Egypt’s Banque Misr, which it said has helped Iran gain access to U.S. dollars.

The Treasury Department warned on Monday that financial institutions that continue to engage in transactions with VTB could also face sanctions. Officials from the department are meeting with global financial institutions this week to discuss ways to shut down Iranian revenue streams.

According to the Treasury Department, VTB has been helping Iran move frozen assets and created a settlement system for national currencies through correspondent accounts in Iranian rials and Russian rubles to help facilitate trade between the two countries.