Russian VTB Bank’s Services for Iranians Signal Step Toward Global Banking Reintegration

TEHRAN (Iran News) Ferial Mostofi, head of the commission, opened the session by highlighting the critical need to resolve financial transfer challenges faced by Iranian traders. She noted that VTB Bank, Russia’s second-largest financial institution, has initiated cooperation with Iranian banks and established a representative office in Iran. This partnership has already facilitated services, including the issuance of a letter of credit (LC), marking a breakthrough for Iranian businesses long isolated from global banking networks. “Access to these services enhances transparency and reduces commercial risks for traders,” Mostofi stated, emphasizing the potential for greater financial stability.

Mohammadreza Rajaei, VTB Bank’s official representative in Iran, provided context on the bank’s operations, which began laying groundwork in Iran three years ago. He underscored Russia’s economic significance, with annual trade volumes of $700–800 billion, contrasted by the relatively modest $3 billion trade between Iran and Russia. “Iran has yet to secure a prominent position in Russia’s economic dealings,” Rajaei remarked, advocating for stronger banking infrastructure to elevate bilateral trade. He revealed that VTB has established correspondent relationships with 12 Iranian banks, enabling services through these local partners. Rajaei also hinted at plans to open a full branch in Iran next year, a move that could further streamline financial operations.

VTB’s services are designed to operate through Iranian banks, ensuring that transactions remain rial-based for local businesses, shielding them from the complexities of foreign currency transfers. Rajaei explained that the availability of services depends on financial resources and active correspondent relationships, with mechanisms already in place to support trade settlements between the two nations. With assets valued at $260 billion, VTB’s scale rivals the combined asset value of all Iranian banks, positioning it as a robust partner for Iran’s financial ecosystem.

Andrei Konstantin, a VTB project manager, elaborated on the bank’s global footprint, boasting $439 billion in financial assets, 1,600 branches across Russia, and a customer base of 24 million. Despite some branches being inactive due to sanctions, VTB maintains an extensive network in CIS countries and is eager to deepen ties with Iranian firms. Konstantin confirmed the bank’s commitment to opening its first Iranian branch in 2026, a development anticipated to bolster economic cooperation.

Representatives from Iranian banks, including Bank Saderat, Bank Melli, and Bank Middle East, outlined their roles in facilitating VTB’s services. Samad Ahangar, deputy international affairs officer at Bank Saderat, noted that businesses in Russia or Iran could secure bank guarantees through VTB and his bank, with LC issuance also feasible. Tania Yaghmaei from Bank Middle East added that the Central Bank of Iran would soon allocate funds to support VTB-related operations, enabling LC issuance upon currency allocation approval. Mehdi Azizi of Bank Melli highlighted the banks’ presence in Armenia as an additional avenue for supporting traders, offering services like guarantees and remittances.”VTB Bank’s Services ”

The session also addressed challenges in Iran-Russia trade. Ali Reza Kiani, deputy head of the commission, pointed out that Turkey’s trade with Russia is 20–25 times larger than Iran’s, and even Armenia’s trade surpasses Iran’s by fourfold. He criticized the inefficiencies of funds held by trustee companies, which lack productive use, and proposed redirecting even a fraction of these resources to VTB to expedite financial transfers. Kiani noted that deposits with VTB could yield 13–14% returns, offering a financial incentive.”VTB Bank’s Services ”

Concerns about service costs were raised by Roshanali Yekta, vice president of the Iran-Russia Joint Chamber, who highlighted that small and medium-sized enterprises, which drive over 60% of Iran-Russia trade, operate on razor-thin margins. High service fees could render VTB’s offerings inaccessible, he warned. Rajaei acknowledged that negotiations on fee structures are ongoing, with the collaboration still in its early stages.

The session concluded with a resolution for the commission to draft a comprehensive proposal on VTB cooperation, to be submitted to relevant authorities. Stakeholders, including Amirabbas Mahdavimehr of Persian Gulf Industry Trade Holding, expressed readiness to support infrastructure development for VTB’s Iranian branch, underscoring the potential for enhanced trade facilitated by VTB’s ties with Chinese banks.

This partnership marks a cautious but promising step for Iran’s reintegration into global finance, offering businesses new tools to navigate international trade with greater ease and security.