Moscow & Tehran to boost banking ties

An Iranian flag flutters in front of the head office of the Export Development Bank of Iran (EDBI) in Tehran © Morteza Nikoubazl
There is a large untapped trade potential between Russia and Iran, according to the head of Iran’s Central Bank (CBI) Valiollah Seif, who has called for expanded banking relations between the two countries.

“The previously unlikely proposals for establishment of joint accounts and the creation of financial relations with Russia now seem to be more feasible,” said Seif at a meeting with a Russian delegation in Iran, according to the Mehr News Agency.

He talked about the importance of creating banking ties which could boost trade between the countries.  Moscow and Tehran plan trade to increase from the current $1.7 billion to $10 billion.

“CBI fully supports plans to extend business turnover between Iran and Russia,” said Seif.

Both agreed on mutual guarantees for transactions in national currencies.  "We've agreed to share risks. If we have projects in Iran they may guarantee them to us and vice versa. We'll battle the scheme out, starting from small sums of $10-20 million," Alexey Tyupanov, CEO of the Russian Agency for Export Credit and Investment Insurance (EXIAR) told TASS.

Russia’s Minister of Industry and Trade Denis Manturov said the two countries have agreed several projects “the implementation of which is subject to the establishment of banking and financial mechanisms.” He added that it’s necessary to strengthen bilateral ties between Russia and Iran on the basis of friendly relations.

Manturov is heading the Russian delegation at the three-day Russia-Iran Trade and Industrial Dialogue in Tehran.