Tehran insists Iran-Russia trade now completely dollar-free

Iranian Parliament Speaker Mohammad Bagher Ghalibaf announced that all transactions between Iran and Russia are now conducted without the use of US dollars, amid efforts to counter the impacts of US sanctions.

"BRICS has provided us with a very important opportunity. Regarding de-dollarization, all transactions between Iran and Russia are done without dollars. All this is because of the incorrect and wrong methods that America has taken in relation to its unilateralism," Ghalibaf told Russian state-affiliated RT.

Although Iran and Russia are close military and political allies, trade and investment between the two countries is minimal by international standards. The scheme to circumvent the use of the US dollar is to an extent imposed on the two countries, both sanctioned by the United States.

On Thursday, Ghalibaf met with Russian President Vladimir Putin on the sidelines of the 10th Parliamentary Forum of BRICS in St. Petersburg. The discussions focused on strengthening Tehran-Moscow relations and expanding cooperation under the incoming Iranian administration led by president-elect Masoud Pezeshkian.

On July 6, Governor of Iran's Central Bank (CBI) Mohammadreza Farzin announced that Tehran and Moscow have interconnected their local payment systems to bolster financial and economic ties and counter the impacts of US sanctions.

In March 2023, Sergey Katyrin, President of the Russian Chamber of Commerce and Industry, reported a 20 percent increase in trade between Russia and Iran in 2022, reaching $4.8 billion. However, by global standards, the trade volume remains relatively insignificant.