Russia and Iran link banking systems to evade sanctions

Iranian bank cards can now be used in Russia, after the two countries linked their banking systems to evade sanction, state broadcaster IRINN reported.

Iranian banks have been removed from the SWIFT international financial messaging service since 2018, as Donald Trump re-imposed sanctions after withdrawing the 2015 nuclear deal.

Iran’s interbank network Shetab has been linked to its Russian equivalent Mir, the channel said.

Russians will also be able to use their bank cards in Iran, IRINN said, without specifying when.

“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,” it said.

Russia has faced mounting sanctions since it invaded neighbouring Ukraine in 2022, resulting in the country seeking closer ties with Iran.

Iran and Russia signed a deal to strengthen mutual banking in June.

Under BRICS, Russia has been calling for the creation of an alternative international banking system than SWIFT. So far, tangible developments in that area have not come to fruition.