The US Treasury’s Office of Foreign Assets Control (OFAC) added VTB Bank to the Specially Designated Nationals and Blocked Persons (SDN) list on September 9. The designation, issued under Executive Order 13902, cites the bank's role in facilitating the evasion of Iranian sanctions.
The action triggers a full freeze on VTB's assets within US jurisdiction and prohibits American entities from transacting with the bank. No general licenses or exceptions were provided in this announcement. This measure is part of the broader Treasury campaign known as Operation Economic Outcast.
VTB previously faced US sanctions in 2014 following the annexation of Crimea and in February 2022 due to the invasion of Ukraine. The new Iran-related designation creates an independent legal basis for restrictions that remains in force regardless of the status of other sanctions.
The Treasury's decision warns third-country financial institutions that facilitating transactions with VTB could lead to secondary sanctions. Global banks are now expected to update their compliance systems to account for this additional legal authority, which further isolates the bank from the dollar system.
