BAKU, Azerbaijan, February 6. VTB Bank has announced plans to convert its representative office in Iran into a branch, citing the strengthening trade and economic ties between Russia and Iran, as well as growing demand for banking services among businesses, a source at the bank told Trend.
The bank confirmed that the new branch will be based in Tehran.
"We plan to open a branch in Tehran, making it the first Russian bank branch in Iran. This will significantly reduce the costs and risks of international transactions while expanding access to trade and export financing tools for businesses engaged in foreign economic activities in both countries," VTB stated.
The bank noted that the branch’s opening is subject to approval from Iran’s financial regulator, with the necessary authorization expected by the end of the year. "This decision has already been approved in principle by the Central Bank of Russia".
The new branch will focus on supporting the foreign trade activities of Russian and Iranian companies. Its primary goal will be to provide essential banking products and settlement mechanisms, including transactions in national currencies and trade and export financing.
"In the initial phase, the branch will prioritize services for companies engaged in bilateral trade, offering crucial banking products such as national currency settlements and trade and export financing," the bank added.
The branch’s structure and staffing will be designed to meet business needs and comply with Iranian regulations. "We plan to build an international team for the branch, bringing together both Russian and Iranian specialists," VTB said.