VTB to transform its Iranian representative office into branch to offer int'l trade services, bank products, settlements

MOSCOW. Jan 20 (Interfax) - VTB plans to transform its representative office in Iran into a branch by the end of 2025, which would initially offer international trade services to Russian and Iranian companies, as well as the bank products and settlement mechanisms sought after in Iran, the bank's press service told Interfax on Saturday.

The VTB representative office in Iran opened in October 2023. Plans to expand the Russian bank's presence in Iran were announced by its chief Andrei Kostin on Friday. VTB would become the first Russian bank to enter Iran's financial market, he said.

"Given the prospects of developing Russia-Iran trade and economic relations and business interest in receiving bank services inside Iran, VTB will transform its representative office in Iran into a branch with a location in Tehran. It will become the first branch of the Russian bank in Iran and help reduce the cost and risks of carrying out international settlements and broaden possibilities for both countries' participants in international trade in using trade and export finance instruments," the service said.

The branch itself can only open after approval by Iran's financial regulator which the VTB is hoping to obtain before the end of year. The decision has already been agreed in principle with Russia's Central Bank.

"Our plan is that initially the branch will offer international trade services to Russian and Iranian companies, as well as bank products and settlement mechanisms sought after in Iran. These are chiefly settlements in national currencies and trade and export finance," the service said.

The branch's structure and staff numbers will be determined according to business needs and Iranian laws. VTB plans to hire an international team including Russian and Iranian specialists to work at the branch.

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