Iran and Russia have initiated a new banking system designed to sidestep international sanctions and reduce reliance on the U.S. dollar. On November 11, Iranian Central Bank Governor Mohammad Reza Farzin announced that the two countries had implemented an interbank network linking Iran’s Shetab system with Russia’s Mir payment network, allowing seamless financial transactions between the two nations.
The Shetab-Mir integration enables Iranians to use their bank cards in Russia for withdrawals and online purchases, significantly enhancing financial connectivity.
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Iranian state media reported that the expanded network will soon be rolled out in Iraq, Afghanistan, and Turkey, further reducing dependence on the SWIFT banking system, which is dominated by the U.S. dollar.
This collaboration is part of a broader strategy by Iran to alleviate the impact of international sanctions and stabilize its economy by fostering stronger economic ties with regional partners. The move also highlights a shared goal between Tehran and Moscow to undermine the dominance of the U.S. financial system.
Tensions Over Caucasus Issues Won’t Derail Broader Iran-Russia Cooperation
Despite growing friction between Iran and Russia over geopolitical issues in the Caucasus, both countries appear determined to keep broader bilateral initiatives on track.
The New York Times reported on increasing tensions, citing an interview with Iran’s ambassador to Armenia, who acknowledged differences between the two nations while emphasizing shared interests.
One key disagreement centers on the Zangezur Corridor project, spearheaded by Turkey to connect Azerbaijan with the Nakhchivan Autonomous Republic.
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The corridor would bypass Armenian territory, potentially severing Iran’s direct land access to Russia and Europe, which could hinder Tehran’s plans to expand trade.
However, experts believe Iran will prioritize efforts to mitigate sanctions over disputes in the Caucasus region, as improving the economy is seen as critical for regime stability.
Overall, the new banking network underscores the growing economic partnership between Iran and Russia, even as geopolitical tensions simmer in other areas.
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