Iranian citizens are now able to withdraw cash using their Shetab payment system cards in Russia, marking the first phase of integration between Iran's Shetab and Russia's Mir payment networks, Iran's embassy in Moscow announced on November 11.

Iran and Russia have been working to strengthen their banking systems since sanctions were imposed on Russia for more than a decade. Plans are underway to address the challenges faced by businesses in both countries. These include adopting currency swap deals, using offshore currencies, employing cryptocurrencies, and connecting interbank networks.

"During this ceremony, which saw its first phase launched today, Iranian tourists will be able to withdraw rubles from Russian ATMs," the report stated.

The integration will develop in three stages, with full implementation expected by 2025.

The second phase will enable Russian tourists to withdraw rials from Iranian ATMs, while the third phase will allow Iranians to make retail purchases in Russia using Shetab cards.

"New concepts have been created in the monetary and banking sphere between the two countries, and today most barriers have been removed. Regarding other work, we should focus on attracting Russian tourists," said Iranian Ambassador to Russia Kazem Jalali.

This development follows Russian President Vladimir Putin's September statement about enhanced bilateral relations with Iran under Supreme Leader Ayatollah Ali Khamenei's support. The countries are working towards signing a major interstate agreement to establish strategic partnership status.

Deputy Foreign Minister of Iran Mehdi Safari announced in June 2024 that there were no obstacles to concluding the comprehensive cooperation agreement between Iran and Russia.

In May, Iranian Trade Attaché Rahimi Mohsen told Russian Izvestia that Moscow and Tehran were developing new settlement methods, including central bank digital currencies and digital financial assets.

Bne IntelliNews could not verify the claim by the Iranian officials.

Earlier on July 6, the governor of the Central Bank of Iran (CBI), Mohammad Reza Farzin, announced that that the two countries were set to use their national currencies in trade and connect ATM networks by August.

In the past, Iran had a similar swap deal with Turkey, which was seemingly cancelled following the re-imposition of sanctions on Iran in 2018.

In 2023, the two central banks signed a significant agreement to establish banking ties, as both are disconnected from international interbank messaging systems such as SWIFT.

Earlier that year, Iran’s SEPAM system was linked to Russia’s Financial Message Transfer System (SFPS), allowing some banks to start offering transactions to Iran or open letters of credit.

As part of the new deal, Iranian bank cards can be used to withdraw rubles from ATMs in Russia starting in August. This marks the first phase of plans to connect Iran’s Shetab interbank network to Russia’s MIR network.