Tehran, Iran – In a significant step towards enhancing financial cooperation and reducing reliance on the US dollar, Iran and Russia officially linked their national payment systems on Monday. The historic ceremony, attended by key officials including Central Bank of Iran (CBI) Governor Mohammad-Reza Farzin and Iranian Ambassador to Moscow Kazem Jalali, marked the unveiling of the first phase of this ambitious project, according to Iranian news agency Press TV. The linkage between Russia’s Mir payment system and Iran’s Shetab system is set to revolutionize financial transactions between the two nations. As part of the initial rollout, Iranian citizens can now use their bank cards to withdraw cash in rubles from Russian ATMs, facilitating smoother travel and commerce between the neighboring countries.
The second phase will enable Russian nationals to withdraw cash in Iran, while the final phase will introduce the ability for Iranians to make purchases at Russian stores using point-of-sale devices linked to their bank cards. “This advancement represents a significant stride towards de-dollarisation and aids in the facilitation of economic relations between Iran and Russia,” Farzin stated during the ceremony, highlighting the importance of this initiative in the context of ongoing sanctions imposed by the United States on both countries. Currently, four Iranian banks have begun to offer this new service, with plans for additional banks to join the initiative as necessary measures are put into place.
The move comes as both Iran and Russia have increasingly sought to bolster their political and economic ties, particularly within the banking sector, as a countermeasure to US restrictions. In a notable development last December, Farzin met with his Russian counterpart, Elvira Nabiullina, to finalize an agreement allowing for bilateral trade conducted in their respective national currencies, further solidifying their cooperative economic efforts. As Iran and Russia continue to navigate the complexities of international sanctions, this innovative payment system could pave the way for a more integrated economic partnership, enhancing trade and financial exchanges between the two nations in the years to come.
