Washington, 15 September (H.S.): The United States has imposed fresh sanctions on VTB Bank, one of Russia’s major financial institutions, accusing it of helping Iran circumvent US sanctions. American officials allege that VTB assisted in the transfer of billions of dollars in frozen Iranian assets and established banking relationships with sanctioned Iranian financial institutions.

According to Türkiye’s state-run Anadolu Agency, the US State Department said that VTB had opened offices in Iran and developed business ties with Iranian financial institutions facing sanctions. The department said the bank also played a role in moving billions of dollars in Iranian assets.

The US administration said it remains committed to shutting down the financial channels allegedly used by the Iranian government to finance terrorism and promote regional instability.

According to the US Treasury Department, VTB assisted in transferring billions of dollars in frozen Iranian assets and expanded its financial presence in Iran.

The United States had already imposed sanctions on VTB Bank in 2022, following the outbreak of the Russia-Ukraine war. Under the existing sanctions, US citizens and institutions are prohibited from conducting transactions with the bank. Through the latest action, Washington has also targeted the growing financial ties between Iran and Russia.

US Treasury Secretary Scott Bessent linked the action to the “Operation Economic Outcast” initiative launched last month, saying the Treasury would continue targeting individuals and entities that provide the Iranian government with financial, technological or other assistance to sustain its activities.

The US administration says identifying and isolating networks that support Iran is among its priorities. Washington alleges that such financial networks enable the Iranian government to continue its activities despite the sanctions imposed against it.

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Hindusthan Samachar / Jun Sarkar