First Russian bank opens in Iran

17 May, 2023 11:54 / Updated 1 year ago
Moscow and Tehran have been strengthening ties in the face of Western economic sanctions 

Russia’s second-largest bank, VTB, has opened a branch in Iran, the country’s Trade Promotion Organization (TPO) announced on Twitter on Tuesday.

VTB is the first ever Russian bank to offer services in the Islamic Republic, according to TPO head Alireza Peyman-Pak.

The majority state-owned bank will promote “trade transparency” and play a role in transferring part of its foreign exchange earnings to the banking network, Peyman-Pak added in his tweet.

Last December, VTB launched a service allowing both individuals and businesses to transfer money to and from Iran. It was one of the first Russian banks to be excluded from the SWIFT global payments system over Moscow’s military operation in Ukraine.

Russia and Iran have recently started to deepen their economic and energy ties to counter Western sanctions faced by both countries.

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