Tuesday, July 12, 2022, 5:04 p.m.
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With massive Western economic sanctions against Russia and its removal from the SWIFT payment system, Moscow is trying to find alternative ways to mitigate the effect on the country’s economy. Thus, a high-level meeting between Russia and Iran established an agreement that attacks the global financial domination of the United States, by eliminating the US dollar from transactions between the two states.
Russian Deputy Prime Minister Alexander Novak and Central Bank of Iran (CBI) Governor Ali Saleh Abadi, who met in Moscow on July 8, 2022, explored ways to remove the US dollar from their financial transactions to facilitate economic cooperation. , in the context in which both countries are subject to US sanctions, writes the Fars News news agency.
It should be noted that according to the information of the International Monetary Fund (FMI) the structure of foreign exchange reserves worldwide was in 2021 as follows: US dollar – 59%, euro – 21%, other currencies – 10%, 6% – Japanese yen, 5% – pound sterling.
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Following extensive talks with Russian Deputy Prime Minister Alexander Novak and Economic Development Minister Maksim Reshetnikov, Sale Abadi said some “very good agreements” had been reached between the two sides in the banking, financial and economic sectors.
Sale Abadi noted that the topic of using national currencies instead of the US dollar in mutual economic transactions was on the agenda of talks in Moscow.
In addition, Russian and Iranian officials also discussed the replacement of the SWIFT international payment system, from which Russia was eliminated after the invasion of Ukraine began.
Surprise announcement: Russia’s economy is doing much better than we expected
Iran and Russia, both countries subject to harsh international sanctions from Western countries, are determined to deepen their economic cooperation. It should be noted that trade between Russia and Iran today has reached a total value of $ 4.5 billion annually.
Trade between Russia and the EU has been more than 250 billion euros a year, but it has fallen due to the war in Ukraine, which can be used by Iran as an opportunity, as there is now an alternative transit route for Russia.
Russia and Iran are interconnected either by the Caspian Sea or by rail networks. Iran plans to export $ 3 billion worth of construction materials to Russia.
The Russian government said it had seen “a significant increase in trade between the two countries, by 81% in 2021 and 31% this year.” For its part, Iran reported that its imports from Russia reached more than $ 2.1 billion in 2021, an increase of 19% over the previous year.
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