Russia and Iran Link Their National Payment Systems to Evade Sanctions
Russia and Iran have linked their national payment systems to bypass global sanctions, striving to counteract their exclusion from the international SWIFT payment network. As reported by Iranian media, Iranian credit cards are now usable for cash withdrawals in Russia. This step is a reaction to the sanctions each nation has faced in recent years. Additionally, plans are underway for comparable partnerships with other countries such as Iraq, Afghanistan, and Turkey.
In a formal announcement on Monday in Tehran, Iran and Russia disclosed the integration of Russia's Mir payment system with Iran's Sataab network. This is part of a three-stage plan aimed at circumventing global economic sanctions, particularly the exclusion of both nations from SWIFT. Initially, the integration will enable Iranian tourists to withdraw rubles from ATMs in Russia, with future plans allowing Russian citizens to use their cards in Iran.
Since 2018, Iranian banks have been cut off from SWIFT, which handles most global financial transactions. This disconnection is part of broader sanctions imposed on Iran following the U.S.'s withdrawal from the 2015 nuclear deal. In February 2022, shortly after Russia's invasion of Ukraine, Western countries announced a partial disconnection of Russia from SWIFT, as part of sanctions intended to disrupt financial flows related to the conflict.
Iranian state TV channel IRINN recently aired footage showing an Iranian bank card being used to withdraw cash from an ATM in Russia. This transaction was enabled by the connection between the Iranian banking network Sataab and Russia's Mir system. The report indicated that Iranians can now withdraw funds in Russia, and in the future, they will be able to use their cards for shopping.
The integration plan will also extend to nations with strong financial and social ties to Iran, such as Iraq, Afghanistan, and Turkey. Iran's central bank governor, Mohammad Reza Farzin, noted that the merger of the two countries' banking systems marks a significant step towards establishing unified regional economic cooperation, fully implementing the process of de-dollarization, and facilitating economic and tourism relations between Iran and Russia.
At the official launch event, Farzin commented, "The project we are celebrating today began with the aim of integrating payment networks and facilitating money transfers between the citizens of the two countries."
In late September, Iranian Finance Minister Abdolnasser Hemmati and Russian Minister of Economic Development Maxim Reshetnikov met to discuss the increasing trade between Iran and countries within the Eurasian Economic Union. Reshetnikov expressed optimism that this process would gather speed. They also addressed customs issues, Russian investments in the oil industry, and trade currency arrangements as part of their joint effort against sanctions led by the U.S.
Iran's President Ebrahim Raisi recently remarked, "We believe that joint projects between Iran and Russia will create significant capabilities for both countries to cope with the harsh sanctions."
Since 2018, Iranian banks have been cut off from SWIFT, which handles most global financial transactions. This disconnection is part of broader sanctions imposed on Iran following the U.S.'s withdrawal from the 2015 nuclear deal. In February 2022, shortly after Russia's invasion of Ukraine, Western countries announced a partial disconnection of Russia from SWIFT, as part of sanctions intended to disrupt financial flows related to the conflict.
Iranian state TV channel IRINN recently aired footage showing an Iranian bank card being used to withdraw cash from an ATM in Russia. This transaction was enabled by the connection between the Iranian banking network Sataab and Russia's Mir system. The report indicated that Iranians can now withdraw funds in Russia, and in the future, they will be able to use their cards for shopping.
The integration plan will also extend to nations with strong financial and social ties to Iran, such as Iraq, Afghanistan, and Turkey. Iran's central bank governor, Mohammad Reza Farzin, noted that the merger of the two countries' banking systems marks a significant step towards establishing unified regional economic cooperation, fully implementing the process of de-dollarization, and facilitating economic and tourism relations between Iran and Russia.
At the official launch event, Farzin commented, "The project we are celebrating today began with the aim of integrating payment networks and facilitating money transfers between the citizens of the two countries."
In late September, Iranian Finance Minister Abdolnasser Hemmati and Russian Minister of Economic Development Maxim Reshetnikov met to discuss the increasing trade between Iran and countries within the Eurasian Economic Union. Reshetnikov expressed optimism that this process would gather speed. They also addressed customs issues, Russian investments in the oil industry, and trade currency arrangements as part of their joint effort against sanctions led by the U.S.
Iran's President Ebrahim Raisi recently remarked, "We believe that joint projects between Iran and Russia will create significant capabilities for both countries to cope with the harsh sanctions."
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