Iran, Russia integrate payment systems to boost financial ties
The Russian banking network known as “Mir” was connected to the Iranian banking network (Shetab) in a ceremony attended by Governor of Central Bank of Iran (CBI) Mohammadreza Farzin so that the bank cards of Iranians can be used in Russian banks from now on.
Kazem Jalali, Iran’s Ambassador to Russia, was also present at the event on Monday, IRNA reported.
By connecting Russia’s Mir network to Iran’s Shetab, from now on, every Iranian can withdraw their funds from Iranian cards in the form of rubles, the Russian currency, from automated teller machines (ATMs) in Russia.
Speaking at the ceremony, Farzin called the project to connect the Iranian Shabab and Russian Mir payment card networks a “significant step” toward creating a comprehensive economic cooperation in the region.
“This project sets a successful example of using and expanding domestic infrastructure for international transactions, and demonstrates that by relying on domestic capabilities and utilizing advanced local infrastructure, international transactions can be developed in the form of de-dollarization and sanction-robustness,” stated the CBI governor.
The CBI further said that the second phase of the link-up process will allow Russian nationals to use Iranian ATMs and the third phase will make Iranian Shetab cards acceptable at point-of-sale (POS) terminals installed in Russian stores.
According to the banking agreements of the two countries, in the third stage, Iran’s Shetab cards can be used in Russian store acceptors so that Iranians traveling to Russia can buy from stores in Russia with Iranian bank cards.
On July 4, Farzin held negotiations with Governor of the Bank of Russia Elvira Nabiullina in St. Petersburg. On July 6, he said that at the meeting the parties noted the completion of work on integrating the Russian payment system Mir and the Iranian payment system Shetab and also signed an agreement on providing liquidity to national currencies for commercial transactions.
Iran and Russia, both subject to illegal Western sanctions, have over the past years deepened their relations in various fields, including economy and trade.
They are also in talks to launch a payment messaging service that could rival SWIFT, a dollar-based international system that has banned the two countries because of US pressure.
Iran has also proposed to connect the national payment systems of the BRICS countries, following the integration of Russia’s Mir and Iran’s Shetab systems.
Russia’s Mir payment card is now accepted in 12 countries. In addition to Russia, it works without restrictions in Abkhazia, Belarus, Cuba. and South Ossetia. Egypt, Mauritius, and Myanmar are planning to introduce Mir into operation. Six other countries are willing to engage in a dialog on its use.