Wednesday, May 29, 2024

Major Russian bank opens branch in Iran for first time

Russia’s VTB Bank, the country’s second largest, opens a branch in Iran, as the two countries step up their financial cooperation in the face of Western sanctions.

Alireza Peyman, who heads Iran’s Trade Promotion Organization, announced the news in a tweet on Tuesday, saying the VTB Bank is the first ever Russian bank to offer services inside Iran.

VTB Bank, he added, will promote “trade transparency” and play an effective role in transferring part of the foreign exchange earnings to the banking network.

In December 2022, VTB Bank announced the launch of a new service allowing both individuals and businesses to transfer money to and from Iran.

Denis Valvachyov, vice president of the bank, said back then that the measure would strengthen economic cooperation and boost tourism between the two countries.

Both Russia and Iran have been hit by harsh economic sanctions by the Western countries.

To circumvent the bans, the two sides have been taking steps to broaden trade based on national currencies and bartering.

Tehran and Moscow also say they are mulling over inking long-term cooperation agreements.

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