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Iran and Russia integrate bank card systems to counter sanctions

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Nov 2024 13:56
2 Min Read

Iranian bank cards are now accepted in Russia, marking a significant step in the integration of their banking systems as part of efforts to bypass international sanctions.

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  • Iran and Russia integrate Bank card systems to counter sanctions
    Iranians use ATMs to withdraw money. (AFP via Getty Images)

Iranian bank cards can now be used in Russia, following the integration of the two countries' banking systems in a new effort to evade sanctions.

Since 2018, Iranian banks have been cut off from the SWIFT international financial messaging network, which handles most global transactions.

This action is part of a broader set of sanctions that were reintroduced after the United States pulled out of the 2015 nuclear agreement.

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Iranian bank cards can now be used in Russia, showcasing an Iranian card being used to withdraw cash from an ATM in Russia, as per state television channel IRINN. 

This development was made possible through the connection of Iran’s interbank network, Shetab, with Russia’s Mir system, the channel explained.

At present, Iranians can withdraw money in Russia, and in the future, they will also be able to use their cards for in-store payments, the report added.

"The plan is also going to be implemented in other countries that have a wide range of financial and social interactions with Iran, for example, Iraq, Afghanistan, and Turkey," the report stressed.

Iran and Russia have both worked to mitigate the impact of sanctions on their economies. Since the beginning of the war in Ukraine in 2022, Moscow has been hit with increasing sanctions, prompting a closer partnership with Tehran. Ukraine and its Western allies have accused Iran of providing Russia with drones and missiles for use in the war. In June, Tehran and Moscow signed a deal aimed at enhancing their cooperation in the banking industry.

It is worth noting that more international organizations, such as BRICS and the Shanghai Cooperation Organisation (SCO), are in the process of establishing alternative trade systems and monetary bodies to ones dominated and influenced directly by the United States and Western countries, which have used sanctions to pressure nations that challenged Western influence.

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