Iran, Russia to further reduce dollar usage in trade: Ambassador

By Al Mayadeen English
Source: Agencies
14 Feb 2023 22:46
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Iranian Ambassador to Russia Kazem Jalali says the reduction of the usage of the dollar in bilateral trade will also diminish its impact on the economies of both Russia and Iran.

Iranian Ambassador to Russia Kazem Jalali (TASS)

Iranian Ambassador to Russia Kazem Jalali explained, on Tuesday, that a large portion of trade between Iran and Russia is carried out using national currencies, however, the weight of the US dollar in their bilateral trade must be further reduced.

According to Nour News, Jalali said "As much as 60% of trade between Russia and Iran is carried out in the national currencies of the two countries: the ruble and the rial. But we have to decrease the 40%-share of the dollar."

Reduced usage of the US dollar in bilateral trade will, according to the ambassador, reduce the impact of the dollar on the Russian-Iranian economic partnership.

Jalali noted that the ruble might become the major currency used for commerce between Eurasian Economic Union countries and one of the key currencies used among members of the Shanghai Cooperation Organization, alongside China's yuan.

Russia-Iran trade hits record high: Russian envoy to Iran

Russia's ambassador to Tehran Alexei Dedov told reporters, on February 9, that trade relations between Russia and Iran have reached a record high of $4.6 billion in 2022, a stark increase of 15% compared to the year prior.

The Russian diplomat added that prospects for further growth are likewise anticipated for the year 2023.

"Record trade figures for 2022 are largely due to the fruitful agricultural cooperation between Russian and Iranian companies. Agri-food accounts for about 85% of our trade," Dedov said, noting that the numbers for the year 2022 were not final and that upward revisions are still ongoing.

"Judging by where we stand politically and economically, we obviously expect bilateral trade to keep growing," Dedov said about prospects for growth in 2023.

Russian exports mainly consist of cereals and oilseeds, timber, non-organic chemicals, machine-building equipment, paper, and cardboard.

Iran, on the other hand, exports fruits, vegetables, nuts, dairy, plastics, ferrous metal products, plumbing, and construction materials.

Dedov stated that Iran Khodro intends to deliver the 2,000 cars to Russia by the end of March in an interview with Sputnik.

Dedov said that Iran Khodro is presently working on its largest program, which calls for the delivery of 2,000 automobiles to Russia by the end of the Iranian calendar year 1401, or March 20, 2023.

The envoy also mentioned SAIPA, another Iranian automaker, which is negotiating with Russian distributors to export more than 20,000 cars to that nation each year.

Dedov underlined that the challenges around acquiring certifications and establishing a network of dealerships have not yet been resolved, which may modify the delivery date despite the current negotiations. Additionally, he mentioned that Iran and Russia are in talks to produce automobiles and auto parts together.