Economy, Business And Markets

Iran, Russia Consider Own Currencies for Trade

Iran, Russia Consider Own Currencies for TradeIran, Russia Consider Own Currencies for Trade

The minister of communication and information technology, who is in Moscow for the 12th meeting of the Iran-Russia joint economic commission, has called for the use of national currencies in two-way trade.

Mahmoud Vaezi made the proposal in a meeting with Elvira Nabiullina, governor of the Central Bank of Russia and called for developing banking ties as well as removal of hurdles to normal bilateral commerce.

He underlined that boosting banking cooperation will prepare the grounds for more Tehran-Moscow collaboration and called for setting up brokerage relations between the two countries once the sanctions are lifted.

The Russian official welcomed enhancing ties, expressing her readiness for closer cooperation with the Iranians.

 Nabiullina also suggested forming a join Eurasian Development Bank and called for e-payment systems between the two countries, ISNA reported citing an Iranian Embassy source in Moscow.

Moscow has indicated it will support Iran’s entry into the Eurasian economic, political and military bloc, the Shanghai Cooperation Organization (SCO), after the sanctions end.

During Vaezi’s visit to Moscow several key issues, including Russia’s plans to open a $5 billion credit line for Iran, the idea of establishing a joint bank and Iran’s membership in the Eurasian Development Bank, is also set to be negotiated.

Iran is interested in joining the Eurasian Development Bank (EDB), founded in 2006 by intergovernmental agreements between Russia and Kazakhstan.

The Iranian minister is heading a delegation of 70 traders, including representatives of leading state and private organizations.

Vazei and Russian Energy Minister Alexander Novak will also chair the joint economic commission meeting to discuss “comprehensive packages for expansion of ties in various fields and make necessary decisions.”

During the two-day meeting, Vaezi is scheduled to meet other senior Russian officials, including the deputy prime minister and agriculture minister.

The visit follows Novak’s trip to Tehran last month, with a large delegation of representatives from 50 Russian companies.

Before it plunged to $2 billion, Iran-Russia trade turnover was $4 billion in 2013. Earlier, Novak said that Iran and Russia intend to invest $35-40 billion in joint medium-term projects.