Russia opens first bank in Iran, marks new blow to SWIFT
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Russia's second-largest bank opened a representative office in Iran to facilitate inter-bank communications between the neighboring countries.
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The logo of VTB bank is seen at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 3, 2021. (Reuters)
Moscow and Iran are moving forward with their mutual goal to end US hegemony over financial transactions and the international monetary systems, the latest step of which saw the opening of the first representative office of a Russian bank in Iran.
The International Trade Bank - VTB Bank - is Russia's second-largest bank and is co-owned between the private and public sectors, but with majority shares held by the state,
The new step will further develop interbank communications between the Western-sanctioned neighboring countries.
Read more: Iran, Russia to create joint interbank payment system: Diplomat
The Chief of Trade Promotion Organization of Iran TPOI Alireza Peyman-Pak announced the move on his Twitter account on Wednesday.
"After continuous efforts and follow-up by Trade Development Organization, VTB Bank, the second-largest Russian bank, opened its representative office in Iran; This is the first Russian Bank that has a direct presence in Iran and will be effective in transferring part of currency income from the trustee network to the banking network and trade transparency," he said in his post.
Read more: World biggest economies looking for USD alternatives
پس از تلاشهای مستمر و پیگیری سازمانتوسعه تجارت، بانکVTB، دومین بانک بزرگ روسی، دفتر نمایندگی خود را در ایران دایر کرد؛ این اولین #بانک_روسی است که در ایران حضور مستقیم داشته و در انتقال بخشی از #درآمدهای_ارزی از شبکه تراستی به شبکه بانکی و شفافیت تجارت موثر خواهد بود. pic.twitter.com/K94ybulBfa
— علیرضا پیمان پاک🇮🇷 (@peymanpak_ir) May 16, 2023
The new presence will allow Iranians, especially business owners and tradesmen, to obtain safe access to many financial systems in Africa, Latin America, Asia, and Europe where VTB and its subsidiaries are active.
Iranians will also be able to access the bank's branches and representative offices in Belarus, Kazakhstan, the Republic of Azerbaijan, Georgia, and Sweden.
The head of Iran's central bank, Mohammadreza Farzi,n announced earlier this year that Iran and Russia have established a direct link between their central banks.
In January, Farzin announced that Iran's banking system is reconnecting with the world economy, stating that so far direct connections with 106 foreign banks have been created.
The SEPAM and Russian SFPS electronic financial systems were linked earlier, both of which are an alternative to the Western-dominated SWIFT system.
