Economy, Business And Markets

Mir Business Bank Expanding Ties

Mir Business Bank Expanding TiesMir Business Bank Expanding Ties

Mi Business Bank, subsidiary of Bank Melli Iran in Russia, is providing services to traders in Russia, Iran and Central Asia. Gholamreza Panahi, said the head of Mir Business Bank.

“We also offer payment orders, bank guarantees, letters of credit and business loans to Russian companies that are doing business with Iran,” Panahi said.

“Iranian companies doing business with Russian and Central Asian companies can refer to Russian Embassy in Tehran to open accounts in MBB and have access to the above-mentioned services,” Bank Melli’s website quoted him as saying on Sunday.

“Traders can receive money in their accounts in Iranian banks,” Panahi said noting that the open market rate would be used for changing money.

MBB also transfers money in euro or ruble to their foreign exchange accounts in Iranian banks. “They can later use the money based on the Central Bank of Iran’s regulations.”

Iranian banks can also open LCs through MBB for transactions in ruble or use BMI’s Hamburg branch for euro transactions. “Lenders are also offered all common banking services.”

Mir Business Bank is the only Iranian-founded bank operating in Russia. Prior to its establishment, Bank Melli Iran was operating in Moscow.  The bank is 100% owned by the Iranian government and has a central office in Moscow and another in Russia’s Caspian Sea city of Astrakhan.

 Costly Services  

Meanwhile, Asadollah Asgaroladi, head of Iran-Russia Joint Chamber of Commerce complained that banking issues are still a major challenge for trade with Russia.

“We will visit Russia on Tuesday to discuss Iran-Russia commercial relations. We will try to solve the banking hurdles between the two countries,” Iran Chamber of Commerce, Industries, Mining and Agriculture news website quoted him as saying in a meeting with traders from Astrakhan on Monday.

 Victor Vinokurov, president of Astrakhan Chamber of Commerce and Industry, said “some banks like Mir Business are conducting operations for traders; however, services are very expensive.”

Alexander Zhilkin, Astrakhan’s governor, added that about 160 Iranian companies are registered in Astrakhan. “In the past most companies were involved in trade,  but recently they prefer to invest in production.”