Dubai, UAE – Iran and Russia have linked their interbank communication and transfer systems to enhance trade and financial operations, a senior Iranian official told Reuters on Monday.
Since the US reimposed sanctions on Iran in 2018 following its withdrawal from the 2015 nuclear deal, the Islamic Republic has been disconnected from the Belgium-based SWIFT financial messaging service, which is a key international banking access point.
Similar restrictions were placed on Russia following its invasion of Ukraine.
“Iranian banks no longer need to use SWIFT … with Russian banks, which can be for the opening of Letters of Credit and transfers or warranties,” Deputy Governor of Iran’s Central Bank, Mohsen Karimi, told the semi-official Fars news agency..”About 700 Russian banks and 106 non-Russian banks from 13 different countries will be connected to this system.”
Iran’s Central Bank chief Mohammad Farzinn tweeted: “The financial channel between Iran and the world is being repaired.”
Linking of banking system with Russia is seen as an attempt by both the countries to get around the US economic sanctions. In Iran the decades long sanctions have deepened economic misery.
Iran’s top authority, Supreme Leader Ali Khamenei, said on Monday that the country faced “a tangible welfare and livelihood problem.”
“In today’s world, a country’s status is largely related to its economic power … We need economic growth to maintain our regional and global position,” Khamenei said in a televised speech.