Russia's future in Iran looks brighter as Europe, US fade - 0 views
www.al-monitor.com/...an-europe-sanctions-swift.html
Iran Russia China EU trade banking transportation regionalism
shared by Ed Webb on 02 Oct 19
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To ease the isolation and economic pressure, Iran is looking to strengthen trade and financial relations with Russia as well as China and neighboring countries such as Turkey, Iraq and Afghanistan.
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Iran has been seeking to conclude banking agreements and establish non-dollar and SWIFT-free financial mechanisms with these countries. Iran's efforts in this regard in relation to Iraq, the United Arab Emirates and Turkey have been somewhat fruitful.
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trade between Iran and Russia grew 24.6% in the first seven months of 2019, reaching $1.33 billion. Russian exports to Iran reached $999.3 million (39.3% growth) and Iran’s exports to Russia stood at $333.7 million — a 6.2% decrease compared with the same period in the preceding year. Iran's share of Russia's total foreign trade rose from 0.3% to 0.4%.
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Iran said earlier this month that it has connected its Financial Electronic Messaging System (SEPAM) to the financial messaging system developed by the the Bank of Russia, SPFS, and trade is increasing and expected to continue growing in the coming months.
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But the economic capacity of Iran-Russia relations is limited and Moscow doesn’t want to jeopardize its interests in a confrontation between Iran and the United States. So, although launching a special financial channel could boost bilateral trade, the increase wouldn’t be all that significant. For Iran, the regional aspect of launching this channel is more important than its bilateral dimension.
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the transport capacity between the Far East, India, Russia and Europe is 30 million tons of cargo, expandable to 100 million tons. Mohammad Eslami, Iranian minister of roads and urban development, emphasized Iran will increase its share of cargo transported between the East and West. One of Iran's options for achieving this goal is the INSTC. According to Eslami, Iran, Russia and Azerbaijan will launch their integrated transport system by the end of 2020
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boosting trade and financial ties with Iran could help fulfill Russia's political goals of reducing US pressure on Iran, saving the Iran nuclear deal and maintaining long-term regional relations with Iran
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Russia doesn’t want to lag behind its rivals in taking advantage of Iran's large market. Iran and China recently updated a 25-year, $400 billion economic agreement signed in 2016. Europe hopes to expand trade with Iran through INSTEX. If the European and Chinese plans are realized, Russia's access to the Iranian market will decline and Moscow’s political goals will be challenged.