Russia looks to bring Cyprus and Iran into Eurasian economic fold

While Barack Obama tours Saudi Arabia, Britain, and Germany in an attempt to get them to sign on to the secret trade pact known as the Trans-Atlantic Trade and Investment Partnership (TTIP), two different nations are looking to join Russia with open arms for a new day of economic prosperity.

On April 28, both Iran and Cyprus announced they were seeking new banking and trade agreements with Russia which will expand their sphere of Eurasian economic cooperation.

Photo by cherezoff/iStock / Getty Images

Photo by cherezoff/iStock / Getty Images

Tehran expects that major financial institutions of Russia and Iran will soon start cooperating, Iran’s Ambassador to Russia Mehdi Sanaei said.

MOSCOW (Sputnik) — According to Sanaei, Tehran and Moscow have achieved some positive results in talks on establishing the Russian-Iranian bank.

”It is expected that large banks of the two countries will soon start bilateral cooperation,” the ambassador told the Russian Kommersant newspaper in an interview.

The diplomat also expressed hope that the central banks of Russia and Iran would “take effective steps toward national currencies exchange” to promote the development and extension of trade and economic ties between the countries.

Tehran is also interested in Russia’s presence in various investment projects in Iran, the ambassador added.
— Sputnik News

Russia's increased authority in the Middle East is helping to dissolve America's long-standing domination over OPEC and other oil nations who have supported the petro-dollar for the past 40 years.  And it is the offer of bi-lateral trade, over coercion and sanctions, that has pushed Iran quickly into the Eurasian camp following the removal of a decade long restriction to their economic potential.

Photo by Kirillm/iStock / Getty Images

Photo by Kirillm/iStock / Getty Images

Cypriot banks can offer Russian business an opportunity to invest internationally, according to the chairman of the Cyprus Investment Promotion Agency (CIPA) Angelos Gregoriades.

He stressed that Cyprus is a European country with low taxation, not an offshore.

”We have good trade relations with Russia. What’s very important for the security of investors is that they are investing through a friendly country. I think Cypriot companies can play an important role in refinancing projects in Russia, and it should be supported,” Gregoriades told RIA Novosti.

According to Gregoriades, Russian companies may consider joint investment funds with Cyprus to invest in other parts of the world, for example, the Middle East, which is a good opportunity to expand their portfolio.

Gregoriades added that Russian business helped Cyprus grow in the past, and the country is doing everything it can to sustain it.
— Russia Today

Cyprus may not seem like the most amenable nation to become a financial hub for Russia because of their experience as the first major nation to execute bank bail-ins a few years ago.  But that may end up being an advantage for Russia as it means they are clear of prior toxic debts and will forge agreements that negate the EU's ability to interfere with financial transactions.

It is becoming clear that there is a difference between what the U.S. and the West have to offer nations in regards to trade and banking, and what the rising powers of Asia and Eurasia do in the transition towards a new global financial system is immense.  And that difference is in how America must coerce and beg country's to join them in their partnerships, while China and Russia are having country's rush to them and offer alliances of their own accord.