Iran, Russia Banks Establish Direct link: Official

The first step toward execution of the joint action plan of banking cooperation between the two countries' central banks, signed last year, was taken on Sunday, according to Farzin.

The Iranian top banker stressed that the channel between Iran and the rest of the globe is being restored, adding that the Iranian banking network will also have a direct connection with 106 other foreign banks.

Following the signing of an agreement between the two central banks on the same day, the CBI declared on Sunday that the electronic financial messaging systems of Iran, known as SEPAM domestically, and the Bank of Russia, known as SPFS, were now linked.

Also, Mohsen Karimi, the CBI's deputy governor for international affairs, said at the signing ceremony that the move will help lay the groundwork for traders and banks from the two countries to increase cooperation and transactions without running afoul of the sanctions.

According to the deal, all Iranian banks overseas and foreign banks connected to Russia's SPFS, including more than 100 institutions in 13 different countries, would be able to communicate and exchange messages with Iranian banks at home.

In an effort to counter the US actions, Iran and Russia, both of whom are subject to American sanctions, have recently strengthened their bilateral political and economic ties.