US sanctions Russia's VTB Bank over Iran ties — analyst sees pressure on China
The US Treasury has sanctioned Russia's VTB Bank for helping Iran evade sanctions. A former official says the real target may be pushing Chinese banks to cut ties with VTB.
The US Treasury Department has imposed sanctions on Russia's VTB Bank, accusing it of participating in efforts to help Iran evade sanctions. According to a Treasury press release, VTB opened representative offices in Iran, processed transactions with sanctioned Iranian banks, and helped move billions of dollars in frozen Iranian assets.
A possible link to China
Miad Maleki, an analyst and former official at the US Treasury unit responsible for overseeing sanctions, said the action against VTB should not be viewed in isolation — it is likely part of broader US pressure on China, where a significant portion of Iran's oil revenue is held.
According to Maleki, VTB is the only Russian bank with a branch in mainland China and access to the country's domestic payment system. Chinese banks have continued doing business with VTB despite the bank having long been under US sanctions tied to Russia. However, being placed on the Iran sanctions list is far more "toxic." Maleki believes the Treasury expects Chinese banks to start cutting ties with VTB out of fear of secondary sanctions under the Iran sanctions program.
A long sanctions history
VTB, Russia's second-largest bank, is state-controlled. The US first imposed restrictions on VTB in 2014 following Russia's annexation of Crimea. In 2022, after Russia's full-scale invasion of Ukraine, the US placed the bank under blocking sanctions.
