Alwaght- Iran and Russia are discussing Tehran's recognition of the independent Russian MIR payment system, said Iran's ambassador to Moscow Kazem Jalali.
The negotiations are in their early stages, sources familiar with the discussion said.
They are aimed at integration of Iranian payment system (Shetab) with the Russian payment solution, also called Russian Swift.
Turkey, Kazakhstan, Azerbaijan, and the Collective Security Treaty Organization states have already activated the system.
The inter-bank payment system was developed since 2016 as the West imposed further sanctions on Russia for annexation of Crimea Peninsula.
"Integration of Iran's Interbank Information Transfer Network known as 'Shetab' into the Russian payment system called 'Mir' (World), has been brought up by the two countries three years ago," Director General of Europe and America at Trade Promotion Organization of Iran Behrouz Olfat said in 2020.
"The Central Bank of Iran and other commercial banks are looking to get integrate 'Shetab' into 'Mir', the protocols related to this issue are being reviewed. If it works, the bank cards of Iran would be connected to 'Mir', and his would help facilitate financial transactions, especially in tourism sector," said the official.
The discussions are aimed at promoting payments in national currencies to ditch US dollar as Western sanctions target their economies.
"The transactions with national currencies between Iran and Russia have always been discussed, but due to fluctuation in foreign currency rate, there are some issues that need to be fleshed out in details. Iran is trading with ruble via Mir Business Bank in Moscow and Astrakhan," he said.
The move is coming amid broader de-dollarization efforts by China, Russia, and Iran. Last week, Saudi Arabia, a US ally, said it accepts oil payments of China in Chinese yuan.
The Russian currency is expected to open a place in world currencgy basket as yesterday President Vladimir Putin of Russia ordered Europe gas payments in ruble.
The measure is coming amid heavy Western sanction on Moscow for its operation in Ukraine.
The system was devised as a way to overcome potential blocks of electronic payments, after several Russian banks were denied services by US-based Visa and MasterCard.
The Western payment systems Master Card and Visa announced suspension of operations in Russia a few days after Ukraine campaign.
The first cards working on the Mir system were launched in December 2015. Sberbank, Russia's leading bank, started issuing them in October 2016. Nearly 70 million 'Mir' cards have been issued by November 2019.
