Iran and Russia Integrate Banking Systems and Expand Ruble Trade

The Central Bank of the Islamic Republic of Iran and Russian officials are finalizing a series of banking and monetary initiatives to deepen financial cooperation between the two nations. A primary focus is the integration of Iran's Shetab interbank network with Russia's Mir payment system. The third and final phase of this project is expected to be completed within two months, allowing Iranian travelers and students to use mobile payment applications at Russian retail terminals.

To simplify cross-border payments, the Central Bank of Iran established a ruble trading board at the Iran Center for Exchange of Currency and Gold and created an offshore rial-ruble. To combat ruble shortages, Tehran deposited 1 billion rubles into a VTB account at the Russian central bank, with Bank Saderat serving as the agent bank. The two countries have also reached agreements on central bank digital currencies.

Governor Mohammad Reza Farzin and official Abdolnaser Hemmati led delegations to Moscow to discuss diversifying trade corridors and increasing the use of letters of credit. Additionally, the Russian government has offered Iran a 20 billion ruble-denominated loan at a 6% interest rate, which Iranian officials are currently evaluating for its benefit.