A recent leak from the Mostazafan Foundation has shed light on the activities and plans of Russian VTB Bank in Iran. As Russia's second-largest Bank and a state-owned entity, VTB Bank has a significant presence outside Russia, with branches primarily located Eastern Europe and Asia Minor. However, the bank has been severely impacted by international sanctions following Russia’s invasion to Ukraine in February 2022, particularly due to US sanctions and its removal from the SWIFT messaging system. These developments have prompted the bank to explore alternative strategies to bypass sanctions, including establishing banking cooperation with Iran. In May 2023, reports emerged of VTB bank opening a representative office in Tehran, which was later downplayed by the bank's management as a minor move with only a few employees. In a significant development, VTB's CEO announce in January 2025 that the bank's representative office in Iran will be upgraded to a full-fledged branch by the end of 2025, paving the way for enhanced trade facilitation and expansion between Russia and Iran. Documents leaked from the Mostazafan Foundation also reveal that VTB Bank has made significant progress in establishing a presence in Iran. The bank has reportedly finalized correspondent agreements with the Central Bank of Iran (CBI), and was in the process of signing similar agreements with six Iranian commercial banks: Melli, Tejarat, Mellat, Passargad, Shahr and Sina, which is owned and controlled by the Mostazafan Foundation. A presentation slide from the leaked documents outlines the framework of the Iran-VTB Bank partnership, naming the commercial Iranian banks seeking correspondence with VTB Bank

For Iran, these deals appear to be a stepping stone towards more ambitious goals, including: • New opportunities for Russian investment in Iran's petroleum sector and railway systems • Easier access to basic goods from Russia • A new method of transferring foreign currency held by Iran’s front company network (“Shadow Banking”) to conventional banking systems • Providing new payment routes for international trade with Russia or other Euro-Asian countries with strong economic ties to Russia

Another presentation slide from the leaked Mostazafan Foundation documents that illustrates how the partnership between Iran and VTB Bank can help Iran achieve its strategic goals

Despite VTB Bank’s management denying claims of further cooperation beyond setting up the representative’s office in Tehran, evidence suggests otherwise. A formal letter from Sina Bank, which is owned by the Mostazafan Foundation, reveals that both banks have agreed on correspondence and will even open and receive Russian Ruble-denominated letters of credit (LC) for bilateral trade.

As both Iran and Russia continue to face economic sanctions, it’s essential to monitor the growing cooperation between the two nations. While their cooperation has primarily focused on military aspects, it is crucial to establish suitable financial infrastructure to facilitate trade. In the past, WikIran has revealed how Russia paid Iran for the different drone models using physical gold transfers and UAE front companies as primary payment methods. With the strengthening of banking ties between the two countries, future arms deals could be facilitated through standard bank payments, a definite cause for concern. All the documents used for this article were sourced from a bulk leakage of Mostazafan Foundation documents exposed on the Bakhtak Telegram channel, available at: https://t.me/bakhtak_1401 .