Iran lifts currency controls with Russia

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Iran lifts currency controls with Russia

The announcement was made by Masoud Karbasian, the head of Iran’s Customs Administration who said the policy is in line with the government’s push to promote trade ties with other countries.

On a related front, the media reported also on Friday that Iran is working over the establishment of a direct commercial flight route to Russia’s southern city of Astrakhan in what is expected to help boost trade between the two countries. 

The Trade Promotion Organization of Iran said the two-way route will be launched through subsidies that will be provided by the government. 

The first flight from Iran to Astrakhan is expected to take place on 23 February 2016. Planes from Iran’s Taban airline will travel to the Russian city twice a week for a period of six months.

Tehran and Moscow are already working over a plan to enable their merchants to trade in rials and rubles instead of euros and dollars. 

To the same effect, both are going to establish a joint bank to facilitate this. 

Ali-Akbar Velayati, a top adviser to Iran’s Leader Ayatollah Seyyed Ali Khamenei, said in early February that Iran and Russia have signed contracts worth a total of around $40 billion over different industrial infrastructure projects.

Velayati emphasized that the contracts had been signed with Russia over the past few months and are ready to be implemented.