Iranian bank cards are now usable in Russia, marking a significant step in the financial relationship between Iran and Russia as they work to sidestep Western sanctions. Iran’s state television recently showed a clear demonstration of an Iranian bank card being used at a Russian ATM, a first for both countries. This breakthrough was possible due to the linking of Iran’s Shetab interbank system with Russia’s Mir banking network. The partnership is a response to economic sanctions placed on both countries, allowing them to access financial services more easily without relying on the SWIFT global banking network.
SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a global messaging system that banks use to send money across borders. But since 2018, Iran has been cut off from SWIFT, making it hard for the country to conduct international banking transactions. This disconnection came after the United States pulled out of a nuclear deal with Iran, putting economic sanctions back in place. Russia, too, has recently faced sanctions and restrictions on SWIFT following its invasion of Ukraine in 2022.
By connecting their financial systems, Iran and Russia are taking a crucial step to lessen their dependence on SWIFT, using their own systems to keep cash flowing between them. With this development, Iranian citizens can now withdraw cash directly from Russian ATMs, and both countries are exploring ways to enable in-store purchases soon.
Sanctions Push Iran and Russia Closer Together
Iran and Russia have been getting closer, especially in recent years, as both nations are under increasing pressure from the West. The newly operational connection between the Shetab and Mir banking systems signals a high level of cooperation to handle economic challenges brought by these restrictions. For Iran, this change means that Iranian citizens visiting or working in Russia have more direct access to cash, making it easier to live and work there. Meanwhile, Russia also benefits from allowing Iranian cards to operate within its financial network.
This collaboration is part of a larger trend where both countries are building bridges in response to international pressures. By creating alternative ways to transfer money, Iran and Russia can move forward without relying on Western financial services. For now, this linked banking network is limited to cash withdrawals at ATMs, but Iran’s state television mentioned the possibility of extending the service to allow in-store purchases for Iranian cardholders in Russia in the future.
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The new banking system link could also grow to include other countries with whom Iran has close relations, such as Iraq, Afghanistan, and Turkey. With such a network in place, more people in these regions might have similar financial access in the years to come. Although the primary goal of this connection is to ease financial transactions for Iranians and Russians, it could also strengthen bonds between Iran, Russia, and their nearby allies.
Russian Bank Cards to Operate in Iran Soon
Along with Iran’s Shetab cards being accepted in Russia, there are plans for the opposite to happen as well: Russian bank cards will soon be accepted in Iran. This means that Russians traveling to Iran will also be able to access their bank accounts and withdraw money locally, much like Iranians can now do in Russia. While no exact date has been given, this development could be an essential step for Russian tourists, businesspeople, and workers who need financial access in Iran.
The agreement between Iran and Russia to link their banking networks was formalized in June, during a banking cooperation meeting. Russia, which has been promoting alternatives to the SWIFT system, continues to work toward creating new financial pathways that avoid Western-dominated networks. This latest move is in line with Russia’s ongoing efforts to establish an international payment system outside of SWIFT, especially as more sanctions from Europe and the United States come into effect.
For both Russia and Iran, this link not only helps to make day-to-day financial transactions easier but also brings them a degree of independence from the traditional global banking system. With sanctions affecting various aspects of their economies, the two countries are now looking to support one another through these types of connections.
The integration of Shetab and Mir is a clear signal that both countries are committed to building a long-term solution to counter Western-imposed financial limitations. As the financial partnership grows, Iranian and Russian citizens will have more options to access their funds, making it easier for them to work, travel, and conduct business across borders, even under the restrictions imposed by sanctions.
By developing these independent banking pathways, Iran and Russia are crafting a direct answer to sanctions and global financial isolation. This new collaboration between Shetab and Mir demonstrates that both countries are determined to protect their financial stability, offering greater convenience for their citizens and creating a united front against external pressures on their economies.
