Iran, Russia join banking alliance to cope with sanctions

Iranian bank cards can now be used in Russia, as the two countries link their banking systems in the latest effort to counter sanctions.

Iranian banks have been cut off from the SWIFT international payment system since 2018. The move is part of a series of sanctions reimposed by the US on Iran after Washington withdrew from the landmark 2015 nuclear deal, according to AFP.

A customer uses an ATM of Rossiya Bank in St. Petersburg (Russia) on March 21.

Iran's state-run IRINN television channel reported on November 11 that customers can now use Iranian bank cards in Russia. In the report, IRINN aired footage of a person withdrawing money using an Iranian bank card from an automated teller machine (ATM) in Russia.

The operation was carried out by connecting Iran's Shetab interbank network with Russia's equivalent Mir network, according to IRINN.

Currently, Iranians can withdraw money in Russia and in the future will be able to use their cards to pay for purchases in stores, according to IRINN.

“The plan will also be rolled out in other countries that have significant financial and social interactions with Iran, such as Iraq, Afghanistan and Türkiye,” IRINN reported.

Both Iran and Russia are looking to counter the impact of sanctions on their economies.

Since Russia began its military campaign in Ukraine in 2022, Moscow has faced increasing sanctions from the West while Moscow-Tehran relations have become increasingly strained.

In June, Tehran and Moscow signed an agreement to increase cooperation in the banking sector. In the future, Russians will also be able to use their bank cards in Iran, according to IRINN.

Russia has pushed for the creation of an alternative international payments platform to SWIFT, after major Russian banks were kicked out of the system from 2022, AFP reported.

Source: https://thanhnien.vn/iran-nga-lien-ket-ngan-hang-de-doi-pho-lenh-cam-van-185241112210133422.htm