US Treasury imposes sanctions on Russia’s VTB Bank for Iranian sanctions evasion

The US Treasury’s Office of Foreign Assets Control (OFAC) has designated VTB Bank, Russia’s second-largest financial institution, under Executive Order 13902 for facilitating Iranian sanctions evasion. The move layers new restrictions on top of years of existing penalties against the state-owned banking giant, effectively closing whatever remaining financial pathways VTB may have maintained with the global dollar system. The designation, made on September 9, places VTB on the Specially Designated Nationals and Blocked Persons (SDN) List, triggering a full asset freeze on any US-jurisdiction property and a blanket prohibition on American persons or entities transacting with the bank. No general licenses or exceptions accompanied the announcement. Operation Economic Outcast The VTB action is part of a broader Treasury campaign dubbed “Operation Economic Outcast,” which targets financial networks enabling Iran to circumvent international sanctions. The same operation included simultaneous designations against a Turkish bank and Iranian airlines, signaling that Washington is casting a wide net across multiple jurisdictions and sectors. For VTB specifically, the Iranian sanctions evasio...