Russian Deputy Prime Minister Alexander Novak announced that his country and the Islamic Republic of Iran have agreed to switch to financial settlements in national currencies, and that Iranian products can fill vacant markets in Russia.
Novak said, during his meeting with representatives of the Iranian business community in Tehran today, Wednesday: “The north-south transport corridor can become a major factor in the development of Russian-Iranian economic cooperation.” He indicated that he discussed with Iranian officials the possibility of linking the two bank payment card systems “Mir” and “Shatab” and the possibility of their operation in the two countries.
He explained that one of the main topics in his talks in Tehran, “was the financial and banking relationship between our two countries, creating conditions for mutual settlements and passing payments between our legal entities.”
He added, “It is important that we agreed to switch to settlements in national currencies as much as possible, and today we discussed with central banks the distribution and operation of the financial messaging system, as well as the linking of payment cards “Mir” and “Shatab” and the possibility of their operation (in the two countries).”
Novak also noted that representatives of the Central Bank and the Ministry of Finance from Iran are expected to visit the capital, Moscow, in the near future, where cooperation with Russia will be discussed.
He said, “The north-south transport corridor can become a key factor in the development of Russian-Iranian economic cooperation.
Novak stressed that “Russia is interested in establishing an international transport corridor between north and south,” noting that “its successful implementation will give a strong impetus to the development of trade between the Caspian Sea basin and the Gulf region,” describing it as a “historic project.”
Novak continued, “The cooperation between Russia and Iran in the current circumstances has become one of the most important things… Thanks to the efforts of the leaders of our two countries, a way is being achieved to increase trade, economic, logistical, investment, financial and banking cooperation, despite the unprecedented pressure that Russia is experiencing today from unfriendly countries.”
And he added, “Special conditions are being created now in order to ensure a serious expansion of cooperation between the two countries, in addition to the major projects that are already being implemented, such as the construction of the Bushehr nuclear power plant and the Serik thermal power plant. There is new impetus to ensure new development.”
He pointed out that in the Russian Federation, today, despite the geopolitical situation, the necessary margin of safety for further transformation and growth of the economy has been formed.. “We are ready to continue implementing the projects that have been started and launching new ones,” he said.
According to Novak, the volume of trade between the two countries increased in 2021 by 81 percent, and reached almost the highest level in the past years, i.e. nearly $4 billion. During the first quarter of the year, the rate of trade exchange increased by more than 10%.
The Deputy Prime Minister of the Russian Federation noted the work “to create comfortable conditions for Russian businessmen both in Russia and in the parties to international trade.”
He noted that, working with partners in the Eurasian Economic Union, “regarding 15% of Russian imports have been exempted from import duties…” considering that “this matter might become one of the stimulating measures for developing trade and economic relations, cooperation and imports with Iran.”
“Procedures for issuing certification and of products have also been accelerated, border controls are simplified, transportation and logistics barriers are removed, and measures have been taken to expand border checkpoints, increasing the flow of goods and speeding up the import of essential products into the country,” he told Novak.
He announced that “decisions have been taken to simplify state registration procedures for important goods, such as medical devices, equipment and medicines, and to provide additional support measures in the form of preferential loans to agricultural, industrial and commercial companies,” noting that “there are special programs to support companies that have found themselves in a difficult situation due to sanctions.”
He pointed out that Russia has a large number of vacant markets that can be occupied by Iranian products. He added, “Russia has taken a path of lifting import restrictions. In this regard, the establishment of trade in national currencies is of particular importance, and the Russian Federation’s financial message transmission system (Swift alternative) is one of the most reliable today, and needs to be expanded.”
On the other hand, Iranian Oil Minister Javad Oji announced the allocation of $5 billion in Russian credit to Iran to finance energy, agricultural and transport transactions between the two countries.
Oji revealed in a statement today that agreements in the field of energy have been signed between Tehran and Moscow, noting that under the current government, the level of trade relations between the two countries in various fields will be raised to 40 billion dollars per year.
With regard to banking cooperation, the minister indicated that banking cooperation is one of the most important axes of negotiations, and a decision was taken to use national currencies in bilateral monetary exchanges and agreements.
He announced the conclusion of agreements in the field of oil and petrochemicals, and the export of Iranian technical and engineering products and services to Russia, in addition to agreements to activate the “North-South” commercial transport corridor.
Oji concluded, stressing that “we have the ability to thwart and neutralize Western sanctions through cooperation and the development of relations between the two countries.”
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