Russia's VTB secures principal approval from Iran's Central Bank to open branch
VLADIVOSTOK. Sept 4 (Interfax) - VTB has secured the principal approval of the Central Bank of Iran to open branch in the country and will offer customers international settlements in national currencies as part of its servicing foreign commerce, a member of the Russian state bank's management board, Olga Basha told Interfax on the sidelines of the Eastern Economic Forum.
"It should be noted that settlements in national currencies - ruble-Iranian rial - are already available in VTB's infrastructure. As for a branch, VTB has received the principal approval of the Central Bank of Iran. This is the first foreign bank that is opening in Iran in a long time," Basha said.
"The opening of a branch is a fairly lengthy process. We've gone through the initial stages and are continuing to move forward. We're establishing all contacts, building the right chain of interactions, studying all legislative nuances, holding a dialog with the regulator on issues of infrastructure, IT and so on, so the process takes time," she said.
Asked if VTB will manage to open a branch before the end of 2025, she said: "It's difficult to guess the future. We will try."
VTB plans to conduct international settlements in national currencies through the branch in Tehran as part of its servicing of foreign commerce, she said.
"The trade turnover is growing, settlements will go through us via a direct channel. Right now international settlements with Iran also go through payment agents, which makes the process more expensive. When settlements will go through the branch, I think trade participants' costs will decrease. As for other services, one can note letters of credit, the standard selection of our branch activity," Basha said.
VTB announced in January that it planned to transform its Iranian office into a branch that would initially service the international commerce of Russian and Iranian companies, as well as offer bank products and settlement mechanisms needed on the Iranian market.
