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News > Russia

Russia's 2nd Largest Bank Plans to Open Office in Iran

  • VTB Bank office in Tehran, Iran, May 16, 2023.

    VTB Bank office in Tehran, Iran, May 16, 2023. | Photo: Twitter/ @langroodi

Published 19 May 2023
Opinion

Iran and Russia have recently expanded bilateral political and economic relations, particularly in the banking sector, to counter the U.S. arbitrary sanctions.

On Thursday, Deputy Governor for International Affairs of the Central Bank of Iran (CBI) Mohsen Karimi said that Russia's second-largest bank VTB plans to set up a representative office in Tehran. 

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Two Iranian banks are laying the groundwork to set up branches in Russia, as both countries have stepped up financial cooperation in the face of tough U.S. sanctions. 

Iran had requested Russia's Central Bank to name a bank as the agent for cooperation between the two countries' central banks, as the bilateral financial activities were increasing.

The VTB, which is the Russian bank with the largest number of foreign branches, has been seeking to strengthen cooperation with its Iranian counterparts since months ago. 

Karimi also hoped that other Russian banks would follow suit in the opening of representative offices and branches. 

Iran and Russia, both being under the sanctions imposed by the United States, have recently expanded bilateral political and economic relations, particularly in the banking sector, to counter the U.S. moves.

In February 2021, Karimi said all Russian banks and 106 banks in 13 other countries have been connected to Iran's financial messaging system known as SEPAM.

With SEPAM, Iranian banks are no longer in need of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. 

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