Russia, Iran examine use of digital currencies for trade: Ambassador

By Al Mayadeen English
Source: Agencies
9 Feb 2023 09:09
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Russian Ambassador to Tehran Alexey Dedov says the use of digital currencies for trade necessitates extensive expert research, including the creation of the required legislative framework.

Iranian and Russian flags at the Kremlin in Moscow (AFP)

Russian Ambassador to Tehran Alexey Dedov said as quoted by Sputnik that Russia and Iran are studying the mechanism for using digital currencies for export-import transactions, stressing that a regulatory framework is required.

"The use of digital currencies and digital financial assets in settlements for export-import operations are being considered by both Russia and Iran. However, the process of reaching any specific agreements is still at the working stage," Dedov said.

He stated that the subject necessitates extensive expert research, including the creation of the required legislative framework.

Regarding the Russia-Iran gas partnership, the top Russian diplomat exposed that Tehran and Russian energy giant Gazprom continues consultations to reach an agreement over the development of fields in Iran.

The National Iranian Oil Company (NIOC) and Gazprom are working to determine the economic assessment of the prospects for the Russian company's participation in oil and gas projects in Iran in accordance with the memorandum of understanding on strategic cooperation signed last summer, as per the diplomat.

He also added that the firms agreed to investigate the prospect of collaborating on the development of Iranian fields, among other things, as part of the agreement.

"In December 2022, a delegation of the Gazprom group visited Iran, following which the parties agreed to continue consultations. Negotiations are underway, and we look forward to reaching mutually beneficial agreements in this area," Dedov added.

The envoy also stated that other Russian corporations are showing a considerable increase in interest in working with Iran in the oil and gas industry, notably on the South Pars field.

Earlier, the Vedomosti business daily reported, citing Alexander Brazhnikov, Executive Director of the Russian Association of Cryptoindustry and Blockchain, that the Central Bank of Iran is considering creating a token with Russia, which could be accepted as a means of payment in foreign trade settlements between the countries instead of the US dollar, Russian ruble, and Iranian rial. As a stablecoin, it is assumed that the token will be backed by gold.

Meanwhile, Russia-Iran trade volume reached new highs in 2022, and Moscow expects an additional increase this year, as per the diplomat.

"The record numbers for bilateral trade in 2022 are largely due to the successful cooperation between Russian and Iranian enterprises in the field of agriculture. About 85% of our trade is agro-industrial products," Dedov said.

In terms of 2023 expectations, the ambassador stated that Moscow "definitely expects an additional expansion in bilateral trade" based on the political atmosphere and shared economic interests.