Russia, Iran shift to national currency settlements for trade

Russia and Iran have nearly fully transitioned to using national currencies for their mutual settlements, with over 96% of transactions conducted this way.

The volume of bilateral trade has risen by 12.4% in 2024, Caliber.Az reports citing the Kremlin press service ahead of the upcoming meeting between the two countries' presidents at the BRICS summit in Kazan.

The report highlights that both nations prioritize strengthening trade and economic ties. In 2023, despite a slight decline, mutual trade exceeded $4 billion. This year, trade is experiencing a growth rate of 12.4% from January to August, with national currencies dominating mutual transactions.

Additionally, Russia and Iran are collaborating on several significant transport and energy projects. The Kremlin has indicated that their relations are advancing toward a "comprehensive strategic partnership," expected to be formalized with an agreement during a visit from Iranian President Massoud Pezeshkian.

According to Iranian Ambassador to Russia Kazem Jalali, the strategic partnership treaty will be signed during Pezeshkian's official visit to Moscow. Initially set to be concluded at the BRICS summit, the two presidents agreed to finalize it during bilateral meetings instead.

The ambassador noted that the new agreement will encompass all areas of bilateral cooperation. Earlier discussions between the Russian and Iranian presidents in Ashgabat indicated optimism for signing the treaty at the BRICS summit. Putin approved the treaty draft on September 18, and the document was confirmed ready for signing by Iran’s ambassador on October 4.

The BRICS group, originally formed in 2006 and expanded in 2011, welcomed new full members — including Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia — starting January 1, 2024. With Russia currently chairing the group, the Kazan summit is expected to be a pivotal event, where Putin plans to meet with Pezeshkian.

By Tamilla Hasanova