Reducing the risk of transferring funds and eliminating intermediary currencies in grain trade by connecting the banking network of Iran and Russia

In the process of importing livestock inputs, in addition to passing the barriers of order registration and quotas, companies are faced with the lack of berths and port facilities to unload cargo and the need to obtain multiple permits from various institutions such as the Ministry of Jihad and Agriculture, Iran Veterinary Organization, and the National Standards Organization. These obstacles sometimes lead to heavy costs of demurrage, warehousing and loss of product quality.

Besides, importers face the challenge of allocating currency after delivering the goods to the consumer through the systems, which often takes three to five months. Such financial transfer restrictions increase the risk and costs of import and make the import process more difficult. This is despite the fact that in the current situation due to the sanctions, while bearing these problems, the importers are providing livestock inputs with care and vigilance and cooperation with the relevant organizations.

Considering the provision of a significant part of the country’s needs in the field of livestock and grain inputs from the Russian Federation, the connection of the banking network of Iran and Russia will lead to the strength and stability of commercial contracts between the two countries, reducing the risk of transferring funds and eliminating intermediary currencies. Also, this connection will allow merchants to benefit from banking facilities and resources.