Iran, Russia crafting new mechanisms to ease trade: CBI chief
The head of the Central Bank of Iran (CBI) said on Friday that Tehran and Moscow are designing and strengthening new financial mechanisms aimed at facilitating bilateral trade, following a working visit to Russia.
Abdolnasser Hemmati, who held talks with Russian monetary officials and business leaders during a three-day trip to Moscow that began on Tuesday, said the focus was on creating financial channels independent of conventional restrictions and utilizing monetary capacities to immediately ease trade flows.
"The recent trip was not merely a diplomatic visit but an operational mission to remove bottlenecks in foreign trade," Hemmati was quoted as saying by ISNA.
"Our emphasis in meetings with Russian monetary authorities and economic activists was on establishing financial mechanisms independent of conventional restrictions and utilizing monetary capacities to immediately facilitate trade," he added. Hemmati said the central bank's approach during the visit was focused on reducing transaction costs for traders. "We are seeking integration and stability so that economic activists in Russia can engage in exports and imports with confidence in exchange rates and the ability to transfer funds," he stated.
The governor identified Russia's Mir Business Bank as a key implementing arm in the effort, saying he had stressed the need to increase its capital and operational capacity to better support the International North-South Transport Corridor and remove obstacles to opening letters of credit for Iranian traders.
He visited Russia's Mir Business Bank on Wednesday, calling for broader banking cooperation, increased financing capacity for bilateral trade and a stronger role for the bank in supporting the International North-South Transport Corridor (INSTC).
Hemmati also said on Friday that the activation of a permanent banking committee between the two countries was a strategic step to ensure continuous follow-up on agreements and prevent them from becoming bogged down in administrative layers.
During a meeting with Russian Central Bank Governor Elvira Nabiullina, the two sides agreed to activate the permanent banking committee between the central banks of Iran and Russia to pursue and accelerate joint banking and financial programs, according to IRNA.
The monetary agreement between Iran and Russia took effect in January 2025, enabling the two countries to settle trade using their national currencies, the rial and the ruble, at agreed exchange rates in the commercial foreign exchange market.
In a related banking development, Russia’s Mir card network was linked to Iran’s SHETAB system in November 2024, and the first two phases of the joint payment system have already been completed. On Tuesday, Hemmati said the third phase of the bilateral agreement will be implemented within a maximum of two months.