Reuters: Russia, Iran link banking systems amid Western sanctions

Tehran and Moscow signed a deal on Jan. 29, connecting their interbank communication and transfer systems to stimulate trade and financial transactions, Reuters reported.

“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 Iranian state-controlled Fars news agency, Reuters reported.

Karimi added that “about 700 Russian banks and 106 non-Russian banks from 13 countries will be connected to this system.” The foreign banks mentioned have not been disclosed.

Russia’s central bank has reportedly declined to comment.

Russia and Iran both face Western sanctions as punishment for their aggression against Ukraine.

On Jan. 6, the White House announced additional sanctions on Iran’s aviation and defense sector for supplying the drones Russia uses to bomb Ukraine’s civilian infrastructure. The Prosecutor General’s Office said on Jan. 21 that there are “no doubts” over Iran’s involvement in the production and provision of drones to Russia.

On Jan. 27, the European Council prolonged economic sanctions against Russia by six months.