Russia and Iran Link Their National Payment Systems to Circumvent Sanctions
Russia and Iran have linked their national payment systems to bypass international sanctions, addressing their exclusion from the global SWIFT payment network. As reported by Iranian media, Iranian credit cards are now capable of cash withdrawals in Russia. This initiative is a reaction to the sanctions both nations have faced in recent years. There are also plans for comparable partnerships with other countries, such as Iraq, Afghanistan, and Turkey.
On Monday in Tehran, Iran and Russia announced the integration of Russia's Mir payment system with Iran's Sataab network, marking the first phase of a project aimed at circumventing global economic sanctions, particularly their disconnection from SWIFT. The initial step allows Iranian tourists to withdraw rubles from ATMs in Russia, with plans to eventually permit Russian citizens to use their cards in Iran.
Since 2018, Iranian banks have been excluded from SWIFT, which handles the bulk of global financial transactions. This exclusion is part of a wider set of sanctions following the U.S. withdrawal from the 2015 nuclear deal. In February 2022, after Russia's invasion of Ukraine, Western countries partially disconnected Russia from SWIFT, as part of sanctions targeting financial movements linked to the conflict.
Recently, Iranian state TV channel IRINN aired footage showing an Iranian bank card being used to withdraw cash from an ATM in Russia, facilitated by the link between Iran's Sataab network and Russia's Mir system. It was reported that Iranians can now withdraw money in Russia and will later be able to use their cards for shopping.
This plan will extend to countries with strong financial and social connections to Iran, such as Iraq, Afghanistan, and Turkey. Iran's central bank governor, Mohammad Reza Farzin, highlighted this banking system merger as a vital step towards a unified regional economic collaboration, progressing towards de-dollarization, and improving economic and tourism relations between Iran and Russia.
At the launch event, Farzin remarked, "The project we celebrate today began with the aim of creating integration in payment networks and easing money transfers between the citizens of both countries."
In late September, Iranian Finance Minister Abdolnasser Hemmati and Russian Minister of Economic Development Maxim Reshetnikov met to discuss increasing trade between Iran and Eurasian Economic Union nations. Reshetnikov expressed optimism for speeding up this process. Topics included customs issues, Russian investments in the oil sector, and trade currency strategies as part of a united stance against U.S.-led Western sanctions.
Iran's President Ebrahim Raisi recently commented, "We believe that joint projects between Iran and Russia will significantly enhance both countries' abilities to withstand severe sanctions."
Since 2018, Iranian banks have been excluded from SWIFT, which handles the bulk of global financial transactions. This exclusion is part of a wider set of sanctions following the U.S. withdrawal from the 2015 nuclear deal. In February 2022, after Russia's invasion of Ukraine, Western countries partially disconnected Russia from SWIFT, as part of sanctions targeting financial movements linked to the conflict.
Recently, Iranian state TV channel IRINN aired footage showing an Iranian bank card being used to withdraw cash from an ATM in Russia, facilitated by the link between Iran's Sataab network and Russia's Mir system. It was reported that Iranians can now withdraw money in Russia and will later be able to use their cards for shopping.
This plan will extend to countries with strong financial and social connections to Iran, such as Iraq, Afghanistan, and Turkey. Iran's central bank governor, Mohammad Reza Farzin, highlighted this banking system merger as a vital step towards a unified regional economic collaboration, progressing towards de-dollarization, and improving economic and tourism relations between Iran and Russia.
At the launch event, Farzin remarked, "The project we celebrate today began with the aim of creating integration in payment networks and easing money transfers between the citizens of both countries."
In late September, Iranian Finance Minister Abdolnasser Hemmati and Russian Minister of Economic Development Maxim Reshetnikov met to discuss increasing trade between Iran and Eurasian Economic Union nations. Reshetnikov expressed optimism for speeding up this process. Topics included customs issues, Russian investments in the oil sector, and trade currency strategies as part of a united stance against U.S.-led Western sanctions.
Iran's President Ebrahim Raisi recently commented, "We believe that joint projects between Iran and Russia will significantly enhance both countries' abilities to withstand severe sanctions."
