DUBAI (Reuters) – Iran and Russia have finalised an agreement to trade in their local currencies instead of the U.S dollar, Iran’s state media reported on Wednesday.
The agreement was finalised during a meeting between the governors of the two countries’ central banks in Russia, it said.
Both Iran and Russia are subject to U.S. sanctions.
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“Banks and economic actors can now use infrastructures including non-SWIFT interbank systems to deal in local currencies,” state media said.
Members of the Russian-led Eurasian Economic Union (EEU) signed a fully-fledged free trade agreement with Iran on Dec. 25.
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Iran has become increasingly important for the Kremlin after Western sanctions over Moscow’s conflict in Ukraine limited Russia’s foreign trade routes and forced it to look for markets outside Europe.
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Iranian authorities have said military cooperation with Russia is expanding. Iran said in November it had finalised arrangements for Russia to provide it with Su-35 fighter jets, Mi-28 attack helicopters and Yak-130 pilot training aircraft.
(Reporting by Elwely Elwelly; editing by Christina Fincher)
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