Iran and Russia linked their national payment systems on Monday, a significant move to bypass the U.S. dollar in bilateral transactions, Iran’s official news agency IRNA reported.
The linkage between Russia’s Mir and Iran’s Shetab payment systems was established in a ceremony attended by the governor of the Central Bank of Iran (CBI), Mohammad-Reza Farzin and Iranian Ambassador to Moscow, Kazem Jalali.
The ceremony unveiled the first phase of the project, which enables Iranian citizens to use their bank cards to withdraw cash in rubles from Russian ATMs. In the second phase, Russian nationals will be able to withdraw cash in Iran. The final phase will allow Iranians to make purchases at Russian stores using point-of-sale devices with their bank cards, the report said.
“Today, we take a big step towards the de-dollarisation and facilitation of economic relations between Iran and Russia,” the semi-official Fars news agency reported, citing Farzin’s remarks at the ceremony.
Four Iranian banks have offered this new service, with more banks expected to join as necessary measures are implemented, Farzin said.
Iran and Russia, both under U.S. sanctions, have recently expanded their political and economic relations, particularly in the banking sector to counter U.S. restrictions.
Last December, Farzin met his Russian counterpart Elvira Nabiullina to finalise an agreement that would allow bilateral trades in their national currencies rather than the dollar.
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