60 Percent of Iran-Russia Trade Is Already De-Dollarized

On Friday, Hadi Tizhoush Taban, the chief of Iran-Russia Joint Commerce Chamber, said that over 60 percent of the payments in trade transactions between these countries are already carried out by using their national currencies.

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Previously, Tehran and Moscow vowed to de-dollarize their bilateral trade, he recalled, adding that this is proof of the two sides' success in their efforts to connect their payment systems, namely Russia's Mir and Iran's Shetab.

Tizhoush Taban described as a very important step toward de-dollarization the contract signed between the two central banks on Jan. 29 to connect Iran's electronic financial messaging system SEPAM and the Financial Messaging System of the Bank of Russia (SPFS).

The move also helps the two countries bypass the Western sanctions and increase the level of the bilateral trade transactions. Currently, over 40 percent of the trade between Iran and Russia is conducted using the Russian ruble.

The joint chamber chief stressed that Russia has become the biggest foreign investor in Iran, having so far invested US$2.7 billion in two Iranian oil projects, which account for 45 percent of the entire foreign funds channeled into the country during October 2021-January 2023.

The projects Russia is funding in Iran are multifaceted pertaining to the fields of energy, railway construction, car production and agriculture, emphasizing that Iran also supplies foodstuffs and cars to Russia.

Iran and Russia have recently expanded bilateral political and economic relations, particularly in the banking sector, to counter the U.S. arbitrary sanctions.

In February 2021, Iranian Central Bank Deputy Governor for International Affairs Mohsen Karimi said all Russian banks and 106 banks in 13 other countries have been connected to Iran's SEPAM.