BRICS: Russia and Iran finalise the integration of mutually beneficial payments systems.

Iran's Central Bank Governor, Mohammadreza Farzin

In an official statement Iran's Central Bank Governor,  Mohammadreza Farzin, has announced that Iran and Russia have completed steps to integrate their payments systems in a way that is mutually beneficial. This move comes as both countries have faced mounting economic and financial sanctions from the United States and its Western allies. 

Iran has joined the MIR payment system, the Russian alternative to Visa and Mastercard, making it possible for their citizens to withdraw money (rubles) from Russian ATMs with Iranian bank cards starting August 22 this year, facilitating easier transactions for Iranian citizens visiting Russia.

The Central Bank Governor made this announcement on Saturday, July 6, 2024. "The second part of the plan was to connect Russia's MIR network to Iran's SHETAB. This is a project that the technical teams of the two countries have been working together for a long time, both in the Central Bank of Iran and in the Central Bank of Russia. Fortunately, this work has also been finalized," Farzin said.

Farzin stated that Iran’s SHETAB system and Russia’s MIR payment systems are now operational, adding that the deal had been finalized during his talks with Russian counterparts on the sidelines of the Financial Congress of the Bank of Russia in St. Petersburg on July 4th.

“Iranian cards will be able to be used in Russian ATMs, almost in late August. Every person with an Iranian card can receive their funds in rubles from Russian ATMs,” he added.

He added that the second stage of this connection will be for the benefit of Russian nationals in Iran, and in the third stage, Iran's SHETAB cards will be able to be accepted at the point of sale (POS) terminals in Russian stores.

"This plan has three stages. The next stage is that Russian cards will be usable in Iran, and the third stage is that our SHETAB cards will also be usable in their stores," the Iranian Central Bank Governor said.

In the second phase, Russian citizens will be able to use their MIR cards for payments in Iran, further enhancing the ease of doing business and travel between the two nations.

This development comes as a part of broader efforts to strengthen economic ties between Russia and Iran, including discussions on using national currencies for trade settlements.

The integration of MIR and SHETAB is expected to boost bilateral trade and tourism, providing a seamless payment experience for citizens of both countries.

As Russia and Iran continue to deepen their economic cooperation, the integration signals the intentions of several other nations seeking ways to reduce their reliance on Western payment systems and the American dollar.