Leaked Russian roadmap reveals 68% of Iran trade settled in national currencies

VTB Bank: VTB Bank is a major Russian state-owned bank involved in international payments and trade finance. The news highlights its role in developing a ruble-rial settlement system, which drew US Treasury sanctions last month for facilitating sanctions evasion. It received a small deposit to cover potential ruble shortages in Russia-Iran trade. A7 Network: A7 Network is described by US authorities as a Russia-linked shadow banking network used to evade sanctions and launder money. According to the news, the US Treasury targeted it on Thursday for connections to Iranian finance, including oil sales and weapons procurement, forming a mechanism tied to Russian illicit activities. Abdolnaser Hemmati: Abdolnaser Hemmati serves as Governor of Iran's Central Bank, managing monetary policy, foreign trade facilitation, and responses to sanctions. In the news context, he described a June trip to Moscow as an operational mission to resolve knots in bilateral payments, including letters of credit for merchants. His public statements have emphasized trading exclusively in national currencies with Russia. Iranian Government: The Iranian Government, led by its supreme leader and president, oversees economic policy, sanctions evasion, and bilateral trade with partners like Russia amid international isolation. Here, officials including the central bank governor have publicly asserted complete exclusion of the dollar in favor of rubles and rials, though internal data shows lower figures and ongoing issues with currency convertibility. Iran has explored loans and alternative payment mechanisms with Russia. Russian Government: The Russian Government encompasses the executive branch under President Vladimir Putin, responsible for foreign policy, trade agreements, and economic strategies including de-dollarization efforts. In this news, its internal roadmap approved in September 2024 reveals actual national currency settlement shares with Iran at 68 percent, contradicting public claims of near-total ruble-rial usage. The government has pursued barter arrangements and swap lines to navigate sanctions. Sanctions: The US Treasury recently imposed new sanctions on VTB Bank and the A7 Network specifically for their roles in Russia-Iran payment systems and sanctions evasion. Trade Mechanisms: Russia and Iran have turned to barter arrangements and energy swaps as alternatives to conventional cross-border payments amid sanctions pressure. Currency Challenges: Both countries face difficulties with holding each other's currencies due to limited convertibility, volatility, and thin markets, leading to reliance on third-country intermediaries like those in Dubai and Turkey.