Major Russian bank launches new service in Iran

Individuals and businesses in both countries will be able to conduct cross-border transactions

Russia’s second largest bank, VTB, has launched a new service allowing both individuals and businesses to transfer money to and from Iran, the lender announced on Monday.  

State-owned VTB, which has been subject to sweeping Western sanctions since late February, has thus become the first lender to provide banking services to Iran, a country that has been under international restrictions for decades.   

The bank’s vice president, Denis Valvachyov, believes that such transactions will be in high demand and that the move will strengthen economic cooperation and boost tourism between the two countries.  

READ MORE: Russia’s move away from dollar ‘irreversible’ – leading banker

The new service will allow money to be sent between Russia and Iran using account details within a day. Next year, VTB is planning to expand transaction services with so-called ‘friendly’ nations, a classification describing those that have not imposed sanctions on Russia. Payments are currently available to the bank’s clients in more than ten former CIS states and some Asian countries.

Find more stories on economy and finance in TROIB business