Russia and Iran link bank card systems to avoid international sanctions

Russia and Iran have reportedly linked their respective bank card systems in a joint effort to bypass international sanctions, the Islamic Republic television channel IRINN announced on Monday.

The bilateral cooperation between the Iranian network, Shetab, and its Russian counterpart, Mir, will allow Iranian bank credit cards to be used in Russia. In addition, Russian nationals will reportedly be able to use their Russian bank cards in Iran.

It is currently unclear when this bilateral initiative will be fully implemented.

In 2018, during then-U.S. President Donald Trump's administration, banks in Iran were excluded from the international financial messaging service SWIFT. This move severely undermined the Iranian banking system, as most international transactions are conducted through the SWIFT platform.

Following Russia’s invasion of Ukraine in 2022, international sanctions have also been imposed on Moscow. Over the past two years, Russia and Iran have consequently concluded that closer ties are mutually beneficial. Moscow has been calling for the establishment of a new international payment system that would serve as an alternative to SWIFT.

IRINN emphasized that the financial integration between Iran and Russia marks only the first step in Tehran's efforts to expand its international diplomatic and financial ties.

"The plan is also going to be implemented in other countries that have a wide range of financial and social interactions with Iran, for example, Iraq, Afghanistan and Turkey," the Iranian state news agency stated.

Iran and Russia have also forged closer military ties amid continued wars in Ukraine and the Middle East. While Russia is formally considered a military superpower, it reportedly lags behind Western nations in some key technologies, including drones. Moscow has, therefore, been acquiring Iranian-produced drones that have been used in the ongoing war against Ukraine.

In December 2022, the United States raised concerns about the “unprecedented Russian-Iranian military partnership.” While Iran's drone support for Russia is well known in the West, U.S. National Security Council Spokesman John Kirby also warned of “an unprecedented level of military and technical support” from Russia to the Iranian regime, which threatens the Middle East's regional security.

“Russia is seeking to collaborate with Iran on areas like weapons development and training,” Kirby warned. “We are concerned that Russia intends to provide Iran with advanced military components,” which “could include air defense.” 

In early 2023, Russia and Iran agreed to build a drone factory in Russia to boost Moscow’s drone capabilities.

In September 2024, the Biden administration raised concerns that Iran intended to deliver ballistic missiles to Russia.

“We have been warning of the deepening security partnership between Russia and Iran since the outset of Russia’s full-scale invasion of Ukraine and are alarmed by these reports,” stated U.S. National Security Council Spokesman Sean Savett.

“Any transfer of Iranian ballistic missiles to Russia would represent a dramatic escalation in Iran’s support for Russia’s war of aggression against Ukraine,” Savett continued.

“This partnership threatens European security and illustrates how Iran’s destabilizing influence reaches beyond the Middle East and around the world.”