Iranian Central Bank Governor Mohammad Reza Farzin revealed that Iran and Russia have finalized the integration of their payment systems, both targeted by Western sanctions. After meeting with Russian Central Bank officials at the St. Petersburg International Economic Forum, Farzin announced that Russia’s Mir payment system will soon be connected to Iran’s Shetab system. This move will enable Russian citizens to use their cards in Iran, with plans for Iranians to use their Shetab cards in Russia next.
Russia and Iran have finalized the integration of the Russian Mir payment system and the Iranian Shetab system, and they have inked an agreement to use national currencies for commercial transactions. This was declared by Mohammad Reza Farzin, the head of the Iranian Central Bank.
According to the Islamic Republic’s regulator, at a bilateral discussion with the Chairman of the Central Bank of Russia, the prerequisites for connecting the Russian Mir card payment network to the Iranian Shetab network were finally agreed upon.
The Eurasian Business News reports that Farzin explained that Shetab bank cards can be used at all ATMs in Russia, and Iranian nationals will be allowed to withdraw ruble cash from them.
Farzin stated that in the first state, which begins on August 22, “bank cards of Iran’s Shetab system can be used as Amber smart cards in all ATMs across Russia, and Iranian citizens will be able to withdraw rubles from Russian ATMs using their cards.”
“The second stage [involves the possibility of] paying with Russian citizens’ cards in Iran,” Farzin said, adding that in the third stage, Iranians will be able to pay with a Shetab card in Russian stores via an ordinary bank terminal.
The Central Bank heads also signed a new cooperation document, an agreement on national currency liquidity to enhance bilateral commerce, according to Farzin.
In August 2023, the Iranian Foreign Ministry stated that the existence of the required technical infrastructure allows the republic to link to the payment system in a matter of months.
Russia and Iran have strengthened their economic connections in recent years, especially as both countries face Western sanctions. Bilateral trade hit a record $3.3 billion in 2021, up 81% from the previous year. Trade was valued at $4 billion at the end of 2023. Iranian imports to Russia increased by 15.8%, reaching $1.29 billion in 2023. Iran joined the BRICS in January 2024.
Russia and Iran are collaborating on oil and gas development, with Gazprom and Lukoil participating in Iranian projects. Russia was Iran’s top foreign investor in 2022, primarily in oil projects.
Iran and the Eurasian Economic Union, led by Russia, inked a free trade deal in December 2023. The deal, which aims to reduce or eliminate tariff and non-tariff trade obstacles while also encouraging economic cooperation between the EAEU and Iran, was signed during a Supreme Eurasian Economic Council meeting in St. Petersburg.
Recently, GreatGameIndia reported that despite sanctions, Russia has surpassed the US as Europe’s primary gas supplier, according to recent data. Efforts to reduce reliance on Russian gas have faltered, raising concerns over geopolitical implications and energy security.
