Credit line allocated to boost Iran-Russia banking ties
Russia allocated a credit line to Iran during the visit of Central Bank of Iran (CBI) Governor Mohammadreza Farzin to Moscow.
Following Farzin’s trip to Russia, with the aim of increasing monetary and banking cooperation between the two countries, and strengthening relations within the framework of the free trade agreement between Iran and the Eurasian Economic Union (EAEU), a meeting was held between the directors of Sberbank of Russia and Bank Melli of Iran (BMI), based on which a credit line worth 6.5 billion rubles was created for Iran to import basic goods from Russia, IRNA reported.
In the meeting, which was attended by Farzin, directors from Sberbank of Russia and Bank Melli of Iran emphasized the opening of the 6.5-billion-ruble credit line between Iran and Russia.
This credit line is supposed to become operational by Sberbank and BMI to finance the import of basic goods needed by Iran.
The credit is based on the brokerage agreements and contracts concluded between the two banks in a minimal form and as the beginning of banking operations.
It should be noted that the opening of this credit is the first important step in the direction of the development of cooperation between Iran and Russia after the signing of the free trade agreement between Iran and EAEU.
Iran and the member states of Eurasian Economic Union (EAEU), Belarus, Kazakhstan, Kyrgyzstan, Russia, and Armenia, signed a free trade agreement (FTA) in a ceremony in St. Petersburg on Monday.
Also, following the consultations and creation of monetary and banking platforms and technical negotiations of the Central Bank of Iran, the first LC of Iran’s banking network abroad was opened by Bank Sepah in
Russia.
The value of this LC, which has been used since Wednesday (December 27), is €17 million, which will be used for imports under the condition of long-term payments.
This mutual and pioneering cooperation will represent the beginning of a new chapter of Iran’s banking relations with other countries.