Russia's VTB may return to the question of expanding its presence in Iran once regional military action ends, VTB Chief Executive Andrei Kostin said, Interfax reported on June 30.

Iran and Russia have dramatically accelerated their banking integration efforts since Russia faced Western sanctions following the Ukraine war, creating a partnership born from mutual isolation from global financial systems. 

VTB might reconsider opening a bank in Iran, Kostin told journalists after the bank's annual shareholders meeting.

"We will think again now, perhaps, about opening our bank in Iran. The situation regarding military action will end shortly, and I think we will come back to this issue," said Kostin.

The bank said in March it would put plans to expand its presence and open a new branch in Iran on hold.

VTB has 21 branches in Russia, according to the Central Bank of Russia. The group also includes subsidiary and associated banks in Vietnam, Armenia, Belarus, Kazakhstan and Azerbaijan, as well as a branch in India, a branch and office in China, and an office in Iran.

By the end of 2025, VTB had planned to transform its Iran office into a branch helping Russian and Iranian companies with foreign economic activity, offering banking products and payment mechanisms in demand on the Iranian market.

The relationship gained significant momentum in 2025 when the central banks signed a joint action plan to facilitate bilateral trade in national currencies, integrate domestic financial messaging systems, and connect card payment networks, as announced by Mohammad Reza Farzin, former governor of the Central Bank.

The groundwork for this financial alliance began in 2023 when both central banks established initial banking ties to compensate for their disconnection from SWIFT and other international interbank messaging systems. Russian President Vladimir Putin reinforced this trajectory in September with his statement about enhanced bilateral relations, with support from Supreme Leader Ali Khamenei, pointing toward a formal strategic partnership agreement.

VTB Bank also opened a representative office in Iran back in 2023, becoming the first direct Russian bank operating in Iran. This move follows about three years of groundwork to establish the bank's presence in Iran, said Mohammad Reza Rajaei, VTB Bank's official representative in Iran.