Iran, Russia Link Banks To Get Around US-Imposed Sanctions

Iran and Russian have established a direct connection between their banks, Mohammadreza Farzin, governor of the Central Bank of Iran (CBI), said on Sunday, according to Iran’s semiofficial Tasnim news agency.

Farzin said that the move comes within the framework of a joint action plan for banking cooperation that the two countries’ central banks signed last. He added that Iran’s banking network will also have a direct connection with 106 other foreign banks.

Iran’s electronic financial messaging system, known domestically as SEPAM, and the Bank of Russia’s financial messaging system, SPFS, were connected Sunday immediately after the signing of a deal between the two central banks.

CBI Deputy Governor for International Affairs Mohsen Karimi said this would enable increased cooperation and transactions between traders and banks from the two countries, while avoiding US-imposed sanctions on both countries, according to Iran’s official Islamic Republic News Agency.