Iran and Russia have solidified an agreement to conduct trade using their respective local currencies rather than the U.S. dollar. This e as reported by Iran’s state media on Wednesday.
The agreement reached during a meeting between the governors of both countries’ central banks in Russia is a strategic response to the challenges posed by U.S. sanctions on both nations.
The accord empowers banks and economic entities to utilize infrastructures, including non-SWIFT interbank systems, for transactions conducted in local currencies, according to state media sources. This shift marks a deliberate effort to reduce dependency on the U.S. dollar in bilateral trade.
Notably, members of the Russian-led Eurasian Economic Union (EEU) formalized a comprehensive free trade agreement with Iran on December 25. The geopolitical landscape, shaped by Western sanctions against Russia over the conflict in Ukraine, has compelled Moscow to diversify its foreign trade routes, making Iran an increasingly crucial partner.
For Iran, this collaboration signifies more than just economic ties. The Kremlin’s interest in military cooperation with Iran has expanded, with plans in November confirming Russia’s provision of Su-35 fighter jets, Mi-28 attack helicopters, and Yak-130 pilot training aircraft to Iran. This strategic alignment highlights the evolving dynamics between Iran and Russia in response to global economic and geopolitical shifts.
