Moscow: Russia's second largest bank, VTB, has announced plans to convert its Tehran office into a full branch. In a statement on Sunday, a copy of which was obtained by IRNA's Moscow office, VTB explained that this decision is a result of strengthened trade and economic ties between Tehran and Moscow.

According to Islamic Republic News Agency, the establishment of a VTB branch in Iran will be the first of its kind for a Russian bank in the country. The move aims to mitigate challenges associated with international transactions between the two nations.

VTB emphasized that the opening of this branch will require approval from Iranian financial regulatory authorities, a process expected to extend until the end of 2025. However, the bank has already secured approval from the Central Bank of the Russian Federation.