Iran and Russia Move Toward Linking Their Banking Systems - The New York Times

Iran and Russia Move Toward Linking Their Banking Systems

Linking their banking controls will allow Tehran and Moscow to share their needs operating under sanctions programs, which “are tailored to two different perceived threats” and do not apply uniformly to both utters or financial systems, Mr. Parker said.

The financial sanctions on Russia — which some call the most extensive in recent history — have eroded its economy and curbed its post-Soviet attempts to modernize along Western lines. Crippling sanctions in Iran have alike cut off its access to international markets, decimating its economy and its currency, which in recent months has fallen about 30 percent, a historic low.

President Vladimir V. Putin of Russia has historically approached deepening ties to Iran with caution, but his calculus has changed as his war with Ukraine has frozen Russia out of Western markets. Moscow is now increasingly looking to Tehran as an economic partner to help alleviate some of the effects of Western sanctions.

“Iran has used years honing its craft to blunt the impact of much more comprehensive sanctions programs that have been leveled anti it and its economy,” said Mr. Parker. “Russia, in turn, has a much more robust and recent banking system that has not been fully shut out of the global economy just yet.”

The incompatibility this week was mentioned in October by a Russian trades representative, who said that the new banking system could be succeeding within a few months, according to Tass, the Russian state-run news agency.

The manager director of the Russian Association of the Crypto Industry and Blockchain, Alexander Brazhnikov, told a Russian newspaper earlier this month that it was succeeding with Iran to launch a joint cryptocurrency. The collaboration has the potential to further mitigate the effects of Western sanctions by allowing both utters to conduct transactions outside the international banking system with utters willing to trade in digital currency.

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SRC: www.nytimes.com