The CEO of Russia’s heavily sanctioned VTB bank has denied regime claims that it will open a branch in Tehran.

In May, Iranian Deputy Trade Minister Alireza Peyman-Pak made the announcement that VTB would be the first Russian bank with a direct presence in Iran, but this was quashed by Andrei Kostin, the bank's CEO.

“We are not going to open a bank in Iran. We opened a representative office, and two people work there," he said, speaking to Reuters.

The CEO explained that the office is simply a contact point where requests can be submitted, claiming that VTB does not plan to "majorly change" the geography of its presence.

After Russia's war against Ukraine, VTB was one of the Russian banks that was completely sanctioned by the United States and the European Union and banned from operating in European countries.

The bank has subsequently been forced to close its branches in Europe and Africa and has only branches now, in Azerbaijan, Armenia, Kazakhstan, and Vietnam.

According to Iranian regulations, representative offices of foreign banks only play the role of liaison between the bank and Iranian organizations and companies.