Russia’s Second-Largest Bank Moves to Establish a Branch in Iran

WANA (Sep 05) – A member of the board of directors of VTB Bank — Russia’s second-largest bank, which already has a representative office in Tehran — announced that the Central Bank of the Islamic Republic of Iran has granted preliminary approval for the bank to open a branch in Tehran.

According to a press release from VTB Bank on Friday, quoted by the Islamic Republic News Agency’s Moscow bureau, Olga Basha said: “We have completed the initial stages in the process of establishing this Russian bank’s branch in Tehran and continue to work on the next steps.”

She added: “We are building the necessary connections, setting up the right framework for cooperation, and studying all the legal details involved in the operation of the VTB branch in Iran.”

Positive Outlook

While declining to give any forecasts about the branch’s future activities in Iran, the VTB board member said: “We see good prospects ahead.”

A member of the board of directors of VTB Bank, Olga Basha. Social Media / WANA News Agency

Mission of VTB’s Branch in Iran

Basha explained that the branch’s initial mission would be to support Russian and Iranian companies in mutual trade activities.

She added: “The branch will also facilitate trade finance, exports, and settlement mechanisms, including cross-border transactions using national currencies.”

VTB’s Presence in Iran

VTB Bank, Russia’s second-largest bank, established its representative office in Iran in May 2023.

Previously, in response to questions about the possibility of upgrading the representative office to a full branch, Basha had said: “We see this office as a gateway to the Iranian market. At present, this model fully meets the needs of our clients and partners.”

She added: “We are studying the market and assessing different options for conducting financial transactions in national currencies for cross-border operations between Russian and Iranian companies using the bank’s main infrastructure.”