Two Russian banks have agreed to accept letters of credit (LCs) issued by Iranian banks, according to Eshaq Bandani, Deputy Governor for Foreign Exchange Affairs at the Central Bank of Iran (CBI).
He said the move will help expand financial cooperation and enable new payment mechanisms between Iran and Russia, particularly in the agricultural sector.
Speaking at a meeting with members of Iran’s Chamber of Commerce Agricultural Commission, Bandani said discussions with several Russian banks are ongoing and a third bank may soon join the arrangement.
The new mechanism is expected to facilitate imports and the supply of essential goods under bilateral financial frameworks.
He noted that, despite budgetary limits, more than $9 billion in foreign currency has been allocated to the Ministry of Agriculture this year, exceeding the legal ceiling, in coordination with senior authorities. The Central Bank has also provided $5.5 billion in preferential-rate currency to support the sector.
Officials at the meeting emphasized the need for efficient foreign exchange management, timely supply of agricultural inputs, and better oversight to prevent market disruptions.
They called the collaboration with Russian banks a strategic step toward stabilizing trade and securing Iran’s food supply.
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