“Last month, we recommended two commercial banks to start operations in Russia, first via corresponding offices and later by opening branches…Both lenders are working on the issue and we expect positive results,” Mohsen Karimi, the CBI deputy for international affairs, said, according to Financial Tribune. 

The announcement came as Russia’s second-largest and majority state-owned VTB Bank has opened up a representative office in Iran as the two neighboring countries seek to further connect their interbank communication and transfer systems in the face of Western sanctions.

With the official start of VTB Bank activities in Iran, conditions will be favorably provided for the low-cost and safe access of Iranian entrepreneurs and businessmen to the banking systems of many European, African and Asian states.

Iranian companies will now have the chance to make international bank transfers. Moreover, VTB Bank and its subsidiaries are extensively active in South American countries, empowering Iran to diversify its exchange routes with export target countries in that region.

The two allies are both restrained by Western sanctions and seek to improve their trade and transaction capabilities.

The development comes after a deal was signed in the Central Bank of Iran allowing Russian individuals and businesses to transfer money to and from Iran. 

DAY/PR