The U.S. Treasury Department announced new sanctions targeting VTB Bank, one of Russia’s largest financial institutions, for its role in helping Iran evade U.S. sanctions and expand bilateral trade with Moscow.

The action, detailed on Monday, focuses on VTB Bank’s establishment of correspondent banking relationships that facilitated prohibited transactions. These steps allowed Tehran to bypass existing restrictions and strengthen economic ties with Russia despite international pressure.

VTB Bank ranks among Russia’s major state-linked lenders and has faced prior Western restrictions over its activities. The latest measures underscore efforts to disrupt financial networks connecting sanctioned regimes.

Treasury officials stated that the bank’s actions directly supported Iran’s ability to conduct trade that would otherwise be blocked. The sanctions prohibit U.S. persons from engaging with VTB Bank and freeze any assets under American jurisdiction.

This development comes amid ongoing concerns about cooperation between Moscow and Tehran on economic and military fronts. The Treasury’s move aims to tighten enforcement and deter other institutions from similar arrangements.

Sanctions of this nature typically require compliance from global financial partners to remain effective. Enforcement will depend on coordination with allies and monitoring of banking channels.