Russia and Iran unite payment systems to facilitate cross-border transactions

In a significant move to bolster financial cooperation, Russia’s MIR payment network and Iran’s Shetab payment system were officially connected, as reported by Tehran Times, a partner of TV BRICS.

This integration represents a crucial step in strengthening economic ties between the two countries, as both Russia and Iran seek alternatives to dollar-based transactions.

Governor of Iranian Central Bank (CBI) Mohammad Reza Farzin spoke at the ceremony, calling this connection a landmark in the two countries' joint effort to facilitate financial transactions and tourism.

Farzin stated that by connecting the national payment networks of the two countries, the borders of electronic payments will be removed and a new chapter will begin in the economic and cultural cooperation of the two nations.

He outlined that the project will progress in three phases. The initial phase, launched at the end of September, allows Iranian tourists in Russia to withdraw rubles from ATMs using their Iranian cards. The following phases aim to extend these services further, eventually enabling Russian citizens to access Iranian ATMs and to use Russian MIR cards in Iranian retail establishments.

Earlier this year, Farzin signed a monetary agreement with his Russian counterpart in St. Petersburg, paving the way for trade between Iran and Russia in their local currencies. The officials discussed steps to enhance economic ties, marking this payment network integration as a major achievement in these ongoing efforts. The collaboration also saw the signing of a memorandum of understanding (MOU) outlining initiatives to strengthen monetary ties between the two nations.

Moreover, recent talks between Iranian Minister of Economic Affairs and Finance Abdolnaser Hemmati and Russia's Minister of Economic Development of the Russian Federation Maksim Reshetnikov spotlighted customs cooperation, investment in oil, and trade currency settlement. Both parties also expressed interest in strengthening ties with the Eurasian Economic Union, further advancing regional cooperation.

In a meeting with Russian Prime Minister Mikhail Mishustin, Iranian President Masoud Pezeshkian underscored the importance of Iran-Russia cooperation. Pezeshkian also pointed to future collaboration within multilateral organisations like BRICS and the Shanghai Cooperation Organisation (SCO), aimed at supporting independent countries’ economic and political interests.

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