Iranian commercial banks are planning to launch offices and branches in Russia, Financial Tribune reports, citing Deputy Governor for International Affairs of the Central Bank of Iran, Mohsen Karimi.

"Last month we recommended two commercial banks to start operations in Russia, first via corresponding offices and later by opening branches…Both lenders are working on the issue and we expect positive results," Karimi said.

The announcement comes as Russia's state bank VTB opened a representative office in Iran as the two neighboring countries seek to further consolidate their interbank communications and transfer systems amid Western sanctions.