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Iran to trade with Russia in national currencies to increase mutual trade

April 2, 2022 at 12:03 pm

Iranian President Ebrahim Raisi (R) meets Russian President Vladimir Putin (L) in Moscow, Russia on 19 January 2022 [Iranian Presidency/Anadolu Agency]

Iran has announced that it is willing to trade with Russia in national currencies, citing already existing deals and opportunities, Sputnik reported on Friday.

Sputnik reported Vice-Governor of Iranian Central Bank Mohsen Karimi confirming that both countries would use: “National currencies – the ruble and the toman – and agreements on this matter already exist.”

During a two-day visit to Moscow in January, Iranian President Ebrahim Raisi shared that the two countries had discussed monetary and banking issues and agreed to remove trade barriers to increase trade to $10 billion a year.

The Iranian media has reported that commercial exchange in both countries hit a new record in 2021, exceeding the equivalent of $4 billion. Russian exports to Iran account for over $3 billion, while Russian imports from Iran reached $967.3 million.

“The two countries can take steps to break the dominance of the dollar over monetary and banking relations and trade with the national currency,” Raisi said during his visit.

Nearly 80 per cent of trade between Russia and Iran currently consists of agricultural products. Russia exports grains and oilseeds to Iran and imports Iranian fruits and vegetables, dried fruits and nuts.

READ: What will be the future of global energy post-Ukraine war?

Russian officials have spent years negotiating with allies and partners to use national currencies in mutual trade.

Meanwhile, The Times of India reported that India is close to signing a deal to import 3.5 million barrels of oil at very low prices.

Russia will hand over the oil to India to help it evade Western sanctions imposed on Russia due to its war with Ukraine.

It is worth noting that the Russian ruble lost half of its value following the European Union sanctions, but it has since regained its value.

Russia has confirmed that it will ask its energy customers to pay their dues in rubles.