Iran and Russia to expand banking cooperation

Iran and Russia signed agreements to expand their banking cooperation. They were signed by Governor of Central Bank of Iran Mohsen Nourbakhsh and his Russian counterpart Viktor Gerashchenko. These agreements guarantee the mutually acceptable legal tender between Iranian and Russian Central Banks, and between Iran's Bank Melli (national bank) and Russian External Trade Bank. They said that the agreements would provide many facilities for Iran and Russia to broaden economic cooperation and mutual investment.
"Both countries agreed to overhaul their banking cooperation to benefit both," Nourbakhsh told. The agreement coincides with Russia's dismissal of Washington's threat to impose new sanctions on it over its arms sales to Iran, a hot topic in US presidential elections.
Moscow reacted to US threats by saying that it alone would choose its trade partners. Foreign Minister Igor Ivanov said that Moscow would stand for no interference in pursuing its trade interests, dismissing a US list including Iran among states alleged to sponsor terrorism along with Cuba, Iraq, Libya, North Korea, Sudan and Syria.
In Moscow, Defence Minister Igor Sergeyev said Russia would observe international law and never supply Iran with weapons of mass destruction. The deal, signed in 1995 by US Vice-President Al Gore and the then Russian prime minister, Viktor Chernomyrdin, barred Russia from signing new contracts for Iranian purchases of conventional weapons. Existing contracts were to be completed by 1999.

Nourbakhsh said Iran's Bank Melli would soon open a branch office in Moscow with an initial capital asset of over $ 10 mm. The branch office would commence banking operations by the end of this month. For his part, Gerashchenko said that these agreements are a turning point in Iran-Russia relations. He also attached special importance to expansion of economic relations and joint venture activities with Iran.
Meanwhile, he was quoted as saying that the agreements could also be relied on for military cooperation. Nourbakhsh also met with Russian Minister of Property Farit Gazizulin who also heads the Iran-Russian Joint Economic Commission in a concurrent capacity.
Last month, the Iran-Russia Joint Economic Commission met for its third session. Iran and Russia underlined the need for resolving banking issues outstanding between the two countries and agreed on the setting up of a joint Iran-Russia Development Bank. Gazizulin at the session praised the two previous commission sessions for its success in delineating legal and constitutional grounds for expansion of cooperation between the two countries in the various fields of research, aeronautics, oil and gas, transportation and manufacture of Tupolev planes in Iran.