Russia and Iran abandon the dollar in bilateral trade

MOSCOW: The Russian President Vladimir Putin announced abandoning dollar while conducting bilateral trade and business with close ally Iran.The Russian head of state claimed that Western sanctions led by the United States caused “major losses” to the US itself. Putin alleged that 95 percent of the bilateral trade between the two isolated countries has started to be conducted in rubles and riyals.Putin stated that in the first nine months of 2024, the trade between Iran and Russia increased by 14 percent, to reach a whopping $3.3 billion.A day earlier, Russia and Iran signed a comprehensive strategic partnership agreement, solidifying their ties in the face of growing international isolation and crippling economic sanctions.The deal was finalized following discussion between Putin and Iranian president, Masoud Pezeshkian at the Kremlin.The decision to bid adieu to the dollar comes as both nations seek to improve their economic cooperation as both their economies suffer.Russia has and continues to face a barrage of sanctions following its invasion of Ukraine. It has sought to strengthen ties with other allies to sustain its economy.In one instance of mitigating the impact of Western sanctions, the Eurasian giant entered a barter trade agreement with Pakistan, exchanging 20,000 tonnes of chickpeas for an equal amount of rice.Iran similarly faced sanctions due to its determination to plod on with its uranium enrichment program, which many believe is near 60 percent. If Iran manages to get its uranium enrichment levels to 90 percent or above, it becomes weapons-grade level.