Shibbir Ahmed, New York — The United States has imposed new sanctions on Russia’s VTB Bank, accusing the major financial institution of helping Iran evade U.S. sanctions and establishing correspondent banking relationships with sanctioned Iranian banks. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the action on September 14 under the administration’s Operation Economic Outcast, a campaign aimed at disrupting the Iranian regime’s financial networks and sources of revenue.

“Under Operation Economic Outcast, Treasury will continue to target and disrupt those who provide material, technological, or financial support that allows the Iranian regime to sustain its terrorist enterprise,” Treasury Secretary Scott Bessent said. Bessent added that the United States would continue identifying, exposing and isolating individuals and institutions that support the Iranian regime.

VTB Accused of Expanding Ties With Iran

According to the Treasury Department, VTB Bank, one of Russia’s largest financial institutions, has expanded its banking presence in Iran in recent years as Moscow and Tehran have sought to deepen economic and trade ties.

U.S. authorities said VTB established correspondent banking relationships with Iranian financial institutions already under sanctions and began taking additional steps to expand its presence in Tehran in January 2025.

The Treasury Department also accused the bank of helping establish a settlement mechanism using Iranian rials and Russian rubles through correspondent accounts, with the aim of facilitating bilateral trade. U.S. officials further alleged that VTB took steps to move billions of dollars in frozen Iranian assets.

Operation Economic Outcast

The Treasury Department announced Operation Economic Outcast on August 24, describing the campaign as an effort to sever the remaining economic lifelines supporting the Iranian regime. The operation focuses on financial networks involved in oil smuggling, sanctions evasion and the financing of Iran’s security apparatus, terrorist proxies and other affiliated networks.

Washington has warned foreign financial institutions that continuing significant business with sanctioned Iranian entities could expose them to secondary sanctions and potentially restrict their access to the U.S. financial system. The Treasury Department said it is also working with partners in the European Union, the United Kingdom and Gulf countries to target financial channels connected to Iran.

VTB Already Under U.S. Sanctions

The latest action is not the first time VTB Bank has been targeted by the United States. OFAC previously designated VTB in January 2025 under sanctions authorities targeting Russia’s financial sector. The bank was also sanctioned in February 2022 over its ties to the Russian government and its operations in Russia’s financial services sector. The new designation adds Iran-related sanctions exposure to the bank’s existing restrictions.

Assets Blocked

Under the latest action, all property and interests in property belonging to VTB Bank that are located in the United States or held by U.S. persons are blocked and must be reported to OFAC. U.S. persons are generally prohibited from conducting transactions involving the blocked property unless authorized by OFAC or covered by an applicable exemption. The restrictions also extend to entities that are owned, directly or indirectly, 50% or more by one or more blocked persons.

Foreign financial institutions engaging in certain significant transactions involving designated entities may also face the risk of secondary sanctions, including restrictions on their ability to maintain correspondent or payable-through accounts in the United States.

The Treasury Department said the latest action sends a broader warning to foreign banks and businesses that facilitate Iran’s efforts to circumvent U.S. sanctions. Washington is expected to continue targeting financial institutions and other entities that it says provide Iran with access to international financial networks.

Shibbir Ahmed | Washington, DC: The United States has imposed sweeping new sanctions targeting Iran’s aviation sector, placing 36 individuals and entities—including 27 Iranian airlines—under sanctions. The US Treasury Department announced the measures on Tuesday, saying the action was taken under “Operation Economic Outcast” to increase pressure on Iran’s aviation industry, aircraft procurement activities and related networks.

US authorities allege that the sanctioned individuals and entities were involved in procuring and transferring aircraft, aviation technology and other sensitive equipment for Iran. They are also accused of supporting Iranian aviation networks used to transport weapons, personnel and illicit cargo.

27 Iranian Airlines Sanctioned

The Treasury Department’s Office of Foreign Assets Control (OFAC) designated 27 Iranian airlines for operating in Iran’s aviation sector. The airlines include Air Shiraz, Asa Jet Airline, ATA Airlines, Atlas Aviation Group, Ava Airlines, Chabahar Airlines, Fly Kish Airlines, Iran Air Tour, Iran Aseman Airlines, Kish Airlines, Karun Airlines, Qeshm Air, Saha Airlines, Sepehran Airlines, Taban Airlines, Varesh Airlines and Zagros Airlines, among others. According to Washington, the latest measures represent one of the most significant sanctions actions against Iran’s commercial aviation sector in recent years.

Mahan Air Support Network Also Targeted

The United States also imposed sanctions on several companies and individuals in third countries accused of supporting Mahan Air, an Iranian airline that is already under US sanctions. According to the Treasury Department, intermediaries based in the United Arab Emirates and Türkiye played a role in transferring US-made or US-controlled aircraft to Mahan Air.

US authorities said that at least three Boeing 777 aircraft were transferred to Mahan Air through a network during the summer of 2026. The United States alleges that several companies based in the UAE and Oman were involved in the network.

Aviation Authorizations Suspended

Alongside the new sanctions, OFAC suspended three previously issued authorizations related to aviation operations involving Iran. The authorizations had permitted, under certain circumstances, the use of Iranian airspace and the operation of US-origin or US-controlled commercial aircraft in Iran by non-US airlines. US authorities said aviation safety-related matters would continue to be considered separately on a case-by-case basis.

Warning to Financial Institutions

The Financial Crimes Enforcement Network (FinCEN) also issued a separate alert to financial institutions. The agency urged banks and other financial institutions to increase scrutiny of suspicious transactions linked to Iran’s efforts to procure commercial aircraft and aircraft parts.

The Treasury Department alleges that Iran has used intermediaries and front companies across Europe, the Middle East, Africa and Asia to obtain aircraft, aviation components and dual-use technologies while concealing their ultimate destination.

Part of ‘Operation Economic Outcast’

The latest sanctions are part of the United States’ “Operation Economic Outcast,” an initiative announced in August aimed at increasing pressure on financial networks and revenue streams linked to the Iranian government.

The Treasury Department said assets and interests belonging to sanctioned individuals and entities that fall under US jurisdiction will be blocked. US citizens and companies are generally prohibited from engaging in financial or commercial transactions with those designated.

Foreign companies and financial institutions could also face the risk of US sanctions for engaging in significant transactions with sanctioned individuals or entities. US authorities said the latest measures are intended to further isolate Iran’s aviation sector from the international financial system.