Russian banks begin accepting Iranian letters of credit to strengthen bilateral trade

Russian banks have begun processing letters of credit (LCs) issued by Iranian banks, marking a significant step in strengthening financial cooperation between the two countries. 

According to Press TV, a partner of TV BRICS, Iran’s Central Bank deputy governor for foreign exchange operations, Alireza Gachpazzadeh, confirmed that two Russian banks had agreed to accept Iranian-issued LCs, with a third expected to follow soon.

The decision is designed to facilitate trade, particularly Iran’s imports of essential goods such as agricultural staples from Russia. An LC is a bank-issued guarantee that ensures a buyer’s payment to a seller, and the new arrangement is expected to substantially reduce transaction costs for Iranian importers while improving financial efficiency.

The report emphasised that this measure is part of a broader effort by both nations to deepen economic and trade ties. In recent years, financial integration between Moscow and Tehran has also advanced in retail banking. Since May, Russian citizens using the Mir payment system can make purchases in Iran, while Iranians holding Shetab cards are able to withdraw rubles from ATMs in Russia. 

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