Kremlin reveals Russia-Iran trade success
Russia and Iran have almost fully phased out the use of foreign currencies in bilateral trade, the Kremlin has said ahead of the BRICS Summit in the Russian city of Kazan. The two nations cover more than 96% of mutual settlements in rubles and rials, the statement said.
Bilateral trade volume has grown by 12.4% in the first eight months of this year alone, Moscow said, adding that in 2023, it amounted to more than $4 billion. “Both nations’ leadership pays priority attention to developing trade and economic relations,” the statement said.
According to the Kremlin, Russia and Iran are jointly developing several major transport and energy projects, including the construction of new generating units at the Bushehr Nuclear Power Plant in the Islamic Republic and the International North-South Transport Corridor, which will link St. Petersburg, Russia with the Indian port city of Mumbai.
Relations between the two nations are “on the rise,” Moscow has said. The Kremlin expects them to reach the level of “comprehensive strategic partnership” in the future.
Russian President Vladimir Putin is scheduled to meet with his Iranian counterpart, Masoud Pezeshkian, on the sidelines of the BRICS Summit on October 22-24. The two have already talked by phone and met in person at a summit in Turkmenistan’s capital, Ashkhabad, earlier in October.
Russia has been actively reducing the use of US dollars in international transactions. More than 95% of mutual settlements between Russia and its biggest trading partner, China, are conducted using the ruble and yuan, Russian Prime Minister Mikhail Mishustin said in August.
According to Russian Finance Minister Anton Siluanov, the BRICS countries will further reduce the share of the US dollar in mutual transactions in favor of national currencies. The group includes Russia, Brazil, India, China, and South Africa, as well as Egypt, Iran, the United Arab Emirates, and Ethiopia.
Last week, Reuters reported that Moscow plans to present its plan to create a new international financial system at the upcoming BRICS Summit. The system will involve a new international payment mechanism that allows participating nations to effectively bypass the dollar in international transactions and rely on national currencies instead.
