The Economic Development Ministry of Russia has announced that Moscow and Tehran have held discussions on cooperation between their special trade zones, with the aim of boosting commerce and investment. This comes as bilateral trade between the two countries continues to expand rapidly amidst Western sanctions.
During a videoconference with Iranian colleagues, Deputy Minister Dmitry Volvach informed the Iranian officials about the creation of the Technology and Logistics Union in Russia. The main objective of this union is to deepen trade, economic, transport, and logistics cooperation between Russia and countries in the Caspian region, as well as states gravitating towards the North-South international transport corridor.
Earlier this year, Iran and the Russia-led Eurasian Economic Union (EEU) signed a memorandum on free trade, ensuring the free movement of goods, services, capital, and workers between member states. This agreement allows Iran to exchange goods with EEU member states, including Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, based on preferential trade. The EEU has provided discounts for Iranian goods, while Tehran has granted preferences to items originating from the Eurasian bloc.
Trade between Russia and Iran has experienced significant growth in recent years, driven by the expansion of cooperation between the two countries amidst Western sanctions. According to Russia’s Customs Service, between January and October 2022, trade between Moscow and Tehran reached $4 billion, surpassing the total figure for the whole of 2021. Russian exports to Iran saw a 27% increase, while imports from Tehran jumped by 10%.
In addition to the growth in bilateral trade, Russia and Iran have also signed various agreements aimed at enhancing their economic cooperation. These agreements include the purchase of aircraft equipment and joint projects for the construction of gas pipelines and gas field development.
The cooperation between Russia and Iran is seen as crucial for both countries, as they aim to strengthen their economic ties and reduce their dependence on Western markets amidst the ongoing sanctions. The expansion of trade and investment between the two nations is expected to further boost their economies and open up new opportunities for business collaboration.
Overall, the discussions on cooperation between the special trade zones of Russia and Iran represent another step towards deepening economic ties and promoting bilateral trade. With the growth in trade volumes and the signing of various agreements, both countries are positioning themselves for increased economic cooperation and mutual benefit.