Iranian citizens will be able to withdraw rubles from Russian ATMs using their Iranian banking cards.
Mohammad Reza Farzin, Governor of Iran's Central Bank (CBI), has stated that Tehran and Moscow have signed a financial agreement for bilateral trade exchanges. Farzin told reporters last Thursday that he met with his Russian counterpart in St. Petersburg, where they finalized previously agreed-upon contracts between both countries.
During the meeting, the chief bankers of Iran and Russia also signed a memorandum of understanding on joint actions between the two countries.
Farzin also mentioned that the new financial agreement enables Iran and Russia to conduct trade in local currencies.
He further stated that based on the agreements between special delegations of both countries, Iran's Shetab banking system will be connected to Russia's MIR interbank system by the end of August.
Farzin added that under this scheme, Iranian citizens will be able to withdraw rubles from Russian ATMs using their Iranian banking cards.
He said that this scheme will progress in further stages to allow Russian citizens to use their banking cards in Iranian ATMs and subsequently enable the use of Iranian cards on Russian POS terminals."
Russian state media reported that governors of the central banks of Iran and Russia met in Moscow. During the meeting, both countries finalized an agreement to conduct bilateral trade in national currencies instead of the US dollar.
It should be noted that both Iran and Russia are under American sanctions. These sanctions have significantly hindered Russia's international trade, and it is seeking ways to mitigate their impact and avoid the need for US dollars through such agreements.
Iranian state media reported that following this agreement, banks and economic groups can now engage in transactions using national currencies and banking systems that do not require the SWIFT system.
The statement further mentioned that on December 25, members of the Eurasian Economic Union (EAEU) signed a comprehensive free trade agreement with Iran, besides Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia are members of this Union.
According to the Tehran Times report, after the meeting between Mohammad Reza Farzin, Governor of Iran's Central Bank, and his counterpart from Russia's Central Bank, Russia approved a credit of 6.5 billion rubles for Iran to import essential goods from Moscow.
It should be noted that Russian President Vladimir Putin said in 2019 that it was a suitable time to reconsider the use of the dollar in trade. At present, Russia and China are considering trading in euros, the world's second most important currency, for a temporary period before using their respective currencies.
Due to Western sanctions imposed after Moscow's military operations in Ukraine, limited foreign trade routes have been restricted and forced to search for alternative markets outside Europe, it has become important for Iran and Russia.
Iran and Russia have expanded their political and economic relations on a large scale, as major players in world and West Asian politics and economics for many years, but their relations have reached a completely new level in recent months.
At the end of January, Iranian President Ibrahim Raisi said after his visit to Moscow that the Islamic Republic and Russia had agreed to increase bilateral trade to $10 billion between the two countries.
The imposition of sanctions on both countries has been a major factor in bringing the two sides closer to each other, which has helped them form a strong alliance against American pressure. Over the past few months, senior officials from both sides, including energy, oil, gas, and transit, as well as bilateral meetings and tours, have been working to strengthen bilateral cooperation in diplomatic and political relations.
Iranian authorities have announced that military cooperation with Russia is being expanded. They said that Iran has signed a contract with Russia for the supply of 35 Sukhoi fighter jets, MI-28 military helicopters and Yak-130 pilot training aircraft
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