Russia and Iran have been cooperating to connect their inter-bank messaging systems in order to bypass the US sanctions and the western controlled SWIFT financial transactions network.
Both countries are facing severe Western sanctions, making settlements in trade through SWIFT difficult or impossible since March 2022.
In February 2022, seven Russian banks were severed from SWIFT, effectively denying them access to international markets. The ban was part of the latest Western sanctions targeting Russia over its military operation in Ukraine.
Russia has its own payment mechanism called the Financial Message Transfer System (SPFS) that has similar functionality and allows the transmission of messages in the SWIFT format.
It was created as an analogue to SWIFT that has been developed by the Bank of Russia since 2014. Many anti-US sanction countries are decoupling from the SWIFT and opt for the Russian SPFS and the Chinese CIPS in all their their trade transactions amongst them.
RT. com / ABC Flash Point News 2022.