Iran asserts that it ditched US dollar, strengthened trade with ally Russia

Iran's Ecomy Minister Ehsan Khandouzi on Tuesday, July 26, anunced that Tehran has officially ditched  US dollar as it strengned tre ties with Russian Federation. Islamic Republic has been working with Moscow to come onboard its interbank messaging system and bypass SWIFT financial transactions network, Kazem Jalali, Ambassor of Iran to Russia, h informed at a presser. “We are making efforts in this direction,” Jalali told reporters, according to  RIA vosti. 

On Tuesday, Iran anunced that it has replaced US currency with Russian ruble as it struck many Iran-Russia business deals. Iran has also executed tre contracts with or regional allies and partners including India in Rupees and Iranian Riyal, Turkey, China to bypass US led sanctions that were imposed by former Trump ministration after it unilaterally pulled out from 2015 Iran nuclear deal. In face of US belligerence, Iran's Supreme Leer Ayatollah Ali Khamenei has also been vigorously promoted his "look to East" foreing policy.

Russia, Iran ink estimated $40 billion deal

As president of Russian Federation Vlimir Putin visited Iran, two countries sealed an estimated $40 billion deal with Russian energy companies Gazprom, and Iran's state-owned National Oil Company. Russia, like Iran also w faces a barr of US sanctions for its brutal invasion of Ukraine. Kremlin in a statement h earlier anunced that Iran plans to de-dollarise its ecomy as do away repercussions of  United States-imposed sanctions.

Putin's spokesperson Dmitry Peskov anunced that Tehran and Moscow will grually move away from use of dollar in bilateral relations. Kremlin's press secretary, and spokesperson for President of Russian Federation Peskov also told reporters of state-affiliated ncies that Iran "will move away from practice of using dollar" and switch to SPFS, Moscow's domestic 'System for Transfer of Financial Messs' equivalent of SWIFT financial transfer system designed by  Central Bank of Russia to make transactions in own currency. "Although it may be wrong to count m in US dollars, and over time, we will probably move away from this practice as we develop our cooperation in banking and financial sector," he iterated in an interview with Rossiya 24 TV channel. 

IM: AP