ISalamabad: Russian official media reported that the governors of the central banks of Iran and Russia had a meeting in Moscow. In which the two countries finalized the agreement to conduct mutual trade in local currencies instead of US dollars.
It should be noted that both Iran and Russia are under US sanctions.
The sanctions have dealt a major blow to Russia’s foreign trade, and it is looking for new markets and deals that don’t involve the US dollar to lessen the impact.
Iran’s state media reported that following the deal, banks and economic groups will now be able to transact in local currencies and use banking systems that do not require the SWIFT system.
The statement added that members of the Russian-led Eurasian Economic Union (UAEU) signed a comprehensive free trade agreement with Iran on December 25. Apart from Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia are members of this union.
‘Unfriendly’ countries pay for Russian gas in rubles, Putin
According to the Tehran Times, Russia has approved a 6.5 billion ruble credit for Iran to allow Tehran to import basic goods from Moscow, after Iranian Central Bank Governor Mohammad Reza Farzin met with the Governor of Russia’s Central Bank.
It should be noted that Russian President Vladimir Putin said in 2019 that this is the right time to reconsider the use of the dollar in trade. At the time, Russia and China were considering trading in the euro, the world’s second most important currency, in place of the dollar for a transitional period before using their own currencies.
China and India are major buyers of Russian oil after Western sanctions
Iran has become increasingly important to Russia after Western sanctions resulting from Moscow’s military action in Ukraine have restricted its foreign trade routes and forced it to seek markets outside Europe.
Increasing relations between Iran and Russia
As major players in the political and economic scene of the world and West Asia, Iran and Russia have been expanding political and economic relations for many years, but in the past few months, the relations between the two countries have reached a whole new level.
International trade corridor agreement between Russia, Iran
In late January, Iranian President Ebrahim Raisi, after visiting Moscow, said that the Islamic Republic and Russia had signed an agreement to increase trade between the two countries to 10 billion dollars.
Cheap Russian oil paid in Chinese currency, Pakistan
The imposition of sanctions on the two countries has been a major factor in bringing the two sides closer together, helping them form a stronger alliance against US pressure. Over the past few months, senior officials from both sides have been meeting and visiting each other to strengthen bilateral cooperation in various sectors, including energy, oil, gas and transit, as well as diplomatic and political relations.
Iranian officials said last month that military cooperation with Russia was expanding. He said that Iran has signed an agreement with Russia for the supply of Sukhoi 35 fighter jets, Mi 28 combat helicopters and Yak 130 pilot training aircraft.
(Reuters, news agencies)
