The Treasury Department on Monday imposed additional sanctions on Russia's VTB Bank over allegations it helped Iran move frozen assets and facilitate trade. The move is part of the Trump administration's Operation Economic Outcast initiative to strangle Iran's economy.

The sanctions could expose other countries, such as China, to secondary sanctions. VTB is already under sanctions imposed in 2022 and 2025 over Russia's invasion of Ukraine.

"Treasury will not tolerate any support to the regime and will continue to identify, expose and isolate Iran's enablers," Treasury Secretary Scott Bessent said. The Treasury has held back from directly sanctioning Chinese financial institutions that work with Iran. Bessent foreshadowed the move last week.

The Treasury is rolling out new measures weekly. Last month, it targeted UAE branches of Egypt's Banque Misr for helping Iran access U.S. dollars. It warned that institutions transacting with VTB could also face sanctions. Officials are meeting with global financial institutions this week to discuss shutting down Iranian revenue streams. According to Treasury, VTB helped Iran move frozen assets and created a settlement system for national currencies through correspondent accounts in Iranian rials and Russian rubles.