Iran-Russia monetary deal implemented: CBI chief
Hemmati says Tehran welcomes foreign investors
Governor of the Central Bank of Iran (CBI) Mohammadreza Farzin, who accompanied President Masoud Pezeshkian during his visit to Moscow, announced that the monetary agreement between Iran and Russia had become operational.
“The monetary agreement between Iran and Russia has been implemented, and the national currencies of the two countries, i.e. ruble and rial, have been used as the basis for the settlement based on the agreed rate on the commercial foreign exchange market,” Farzin said.
He also announced the connection of Russia’s Mir Card Network system to Iran’s SHETAB banking network.
Iran-Russia oil deal near finalization
Oil Minister Mohsen Paknejad said that he and his team have had detailed negotiations with energy officials on the Russian side, and the relevant clauses of the Iran-Russia contract are in the final stages.
Paknejad noted that Russian companies are currently executing contracts worth more than $7.5 billion in several Iranian oil and gas fields.
Economy Minister Abdolnaser Hemmati, who also accompanied Pezeshkian, said that foreign investors are welcome to work in his country.
Hemmati made the remark in a meeting with Russian economic activists late on Friday, expressing Iran’s readiness for issuing guarantees for exporters.
The Organization for Investment Economic and Technical Assistance of Iran is also ready to attract foreign capital, he noted.
Meanwhile, Roads and Urban Development Minister Farzaneh Sadeq-Malvajerd referred to the 20-year strategic pact between Tehran and Moscow and said the document indicates the will of two sides for the development of bilateral ties.
The 20-year treaty signed on Friday by the presidents of Iran and Russia aims to facilitate joint investments, optimize banking relations and bilateral payments in national currencies, expand cooperation in transportation and energy, and establish a streamlined customs corridor.
The agreement is seen as a significant economic milestone, particularly in light of regional and international conditions.
The deepening economic ties between Iran and Russia, bolstered by their membership in the Shanghai Cooperation Organization and BRICS, further underscore the importance of this treaty.
The Comprehensive Strategic Partnership Agreement between the Islamic Republic of Iran and the Russian Federation consists of an introduction and 47 articles covering a wide range of sectors.
Direct economic ties between provinces
Article 16 of the treaty emphasizes the development of inter-provincial cooperation, recognizing its importance for expanding bilateral relations.
The treaty commits both parties to creating favorable conditions for direct economic ties between Iranian and Russian provinces.
This will be facilitated through trade missions, exhibitions, fairs, and other joint events aimed at mutual economic and investment opportunities.
Both parties will support commercial and economic cooperation in areas of mutual interest, coordinated through the Iran-Russia Joint Economic Commission.
Facilitating joint investments
Article 18 outlines the commitment to developing trade, economic, and industrial cooperation, including joint investments, infrastructure financing, and facilitating trade mechanisms. The treaty also promotes cooperation in banking, mutual supply of goods, services, and intellectual property rights.
The parties may explore joint investments in third countries through specialized multilateral mechanisms, leveraging their respective investment capacities.
Bilateral payments in national currencies
Article 20 focuses on increasing bilateral trade by developing cooperation between financial institutions, using international legal frameworks to combat money laundering and terrorism financing.
The treaty encourages the use of national currencies for bilateral payments, strengthens direct interbank cooperation, and promotes national financial products.
The agreement also supports trade and investment in special economic zones, with both parties assisting in the establishment of joint ventures and industrial zones.
Expanding transportation cooperation
Article 21 highlights close cooperation in transportation, aiming to develop partnerships based on mutual benefit.
The treaty commits to facilitating transport operations, improving infrastructure, and increasing passenger and cargo volumes using all modes of transport.
Both parties will collaborate on road, rail, air, sea, and combined transport, as well as training specialists in the field. They will also actively develop international transport corridors, particularly the International North-South Transport Corridor, which passes through Iran and Russia.
The treaty promotes the use of digital transport systems and supports coordination in international transport organizations.
Energy cooperation
Article 22 focuses on expanding cooperation in oil and gas based on principles of equality and mutual benefit. The treaty aims to enhance energy security through optimal use of fuel and energy resources.
Key areas of cooperation include scientific and technical collaboration, technology exchange, and investment in oil and gas field development. The treaty also encourages infrastructure projects to enhance global and regional energy security and supports coordinated policies in international energy forums like the Gas Exporting Countries Forum (GECF) and OPEC+.