Page 12 - IRANRptOct22

2.6 Iran and Russia stepping up efforts to ditch dollar in trade
Russian ambassador to Tehran describes Iranians as ‘professors’ of dodging sanctions
Russian President Vladimir Putin said late on July 19 that Russia and Iran discussed the usage of national currencies in bilateral trade settlements during his visit to Tehran.
Putin, who also met Turkish President Recep Tayyip Erdogan in the Iranian capital, also likely discussed a proposal for Turkey to pay for Russian energy supplies in currencies other than the dollar.
Russia and Iran in recent years have gradually become highly vocal about their wish to pursue de-dollarisation in global trade.
To coincide with Putin’s visit, the Iran Currency Exchange (ICE) officially listed the ticker for the Russian ruble (RUB)—Iranian rial (IRR) pair on July 19. Central Bank of Iran (CBI) governor Ali Salehabadi said the introduction of an official exchange window for ruble-to-rial transactions was “in my opinion, a big event”.
He added: "Dollars and euros will no longer determine Iran’s exchange rate, and the ruble will exist alongside other currencies and its volume will increase. Of course, things will not be limited to rubles, and we will offer other currencies to the market.”
Saleh Abadi also remarked: “We hope to have a diverse currency portfolio of different currencies and to reduce the volume and impact of world currencies such as the dollar, and any amount of rubles that the exporter can supply will not be a problem for a transaction.”
Wheat imports might be one area where de-dollarisation can be applied. Iran has seen a massive increase in imports of grain from Russia in recent months as it continues to work on its food security plan in the face of difficulties with water scarcity. In exchange Iran has been exporting increasing numbers of fruits and potatoes to Russia via the Caspian Sea or on trucks that journey through Azerbaijan.
Iranians have become "professors" in circumventing Western sanctions, according to Russian Ambassador to Tehran Levan Dzhagaryan. Tehran's experience in getting past sanctions could be "quite in demand and instructive" for Russia, Dzhagaryan told Russia 24 TV station, speaking in the wake of the visit to the Iranian capital paid earlier this week by Russian President Vladimir Putin.
Since invading Ukraine in late February, Russia has replaced Iran as the most sanctioned country in the world.
Putin received a “very warm welcome in Iran”, Dzhagaryan also said.
The visit, Putin’s fourth to Iran as Russia’s leader, was the Kremlin chief’s first trip beyond the former Soviet Union since the Russians started their war in Ukraine.
12 IRAN Country Report October 2022 www.intellinews.com