Iran and EAEU Set to Launch Free Trade Agreement Implementation Soon

The current state of Russian-Iranian relations is characterized by a promising trajectory in bilateral trade, cultural exchanges, and collaborative projects. Aleksey Dedov, the Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Iran, provides insights into the ongoing developments and future prospects of these vital ties.

Mr. Dedov, a seasoned diplomat who graduated from the Moscow State Institute of International Relations in 1982, has dedicated his career to fostering diplomatic relations between Russia and various nations, including Iran. He emphasizes the importance of trade and economic collaboration as a foundation for mutual growth.

Current State of Bilateral Trade

The trade dynamics between Russia and Iran are showing positive signs. Nevertheless, there is still room for growth. The Russian-Iranian trade turnover is projected to increase by approximately 15% in 2024, compared to a turnover of US$4.2 billion in 2023. This optimistic outlook is attributed to several key developments:

• A scheduled meeting of the Permanent Russian-Iranian Commission on Trade and Economic Cooperation in Russia.
• A significant transition to national currencies for mutual settlements.
• The establishment of independent payment infrastructures to facilitate trade.

As part of the Comprehensive Strategic Partnership Treaty signed between Russia and Iran, Article 20 outlines the transition to bilateral settlements in national currencies, which has already gained traction. The Iranian Shetab payment system is now accepted in Russia, and the introduction of Mir cards in Iran is anticipated soon. These changes are expected to streamline business operations and expand opportunities for cooperation.

Impact of the Eurasian Economic Union

On December 2024, Iran was granted observer status in the Eurasian Economic Union (EAEU). The free trade agreement, approved by Iran’s Supervisory Council on March 2, 2025, is expected to significantly enhance trade relations:

• The EAEU represents a market of 190 million people.
• Preferential regimes will simplify customs procedures for Iranian imports.
• EAEU exporters will benefit from easier access to the Iranian market.

This agreement is seen as mutually beneficial, aligning the interests of both populations and promoting economic growth.

Cultural, Scientific, and Educational Cooperation

The Comprehensive Strategic Partnership Treaty also addresses the enhancement of cultural, scientific, and educational ties. Article 34 focuses on:

• Strengthening cultural relations through the establishment of the Russian Cultural Centre in Tehran.
• Promoting collaboration in higher education, science, and technology.
• Joint scientific, technical, and research initiatives.

This legal framework is designed to foster a long-term partnership, with significant events such as the Days of Russian Culture in Iran scheduled for June, showcasing the commitment to cultural exchange.

Joint Energy Projects

Energy cooperation remains a top priority for both nations. According to President Vladimir Putin, the construction of the second and third power units of the Bushehr nuclear power plant is advancing. Additionally, collaboration extends to:

• Medical isotopes for high-tech medical advancements in Iran.
• A strategic memorandum for pipeline supplies of Russian natural gas to Iran.
• Development projects for Iranian oil fields.

Other initiatives include the North-South international transport corridor and the construction of the Rasht-Astara railway. These projects are crucial for enhancing connectivity and economic collaboration.

Tourism and Visa Policies

In 2023, a new visa-free group tourist exchange program was launched, allowing groups of 5 to 50 individuals to travel without visas. The results have been promising, with a 13% increase in mutual tourist flow in 2024:

• 58,000 Iranian tourists visited Russia, marking a 47% increase.
• 5,000 Russian tourists traveled to Iran.
• 30,000 Iranians entered Russia through the visa-free mechanism.

While there are no immediate plans to expand the visa-free regime to other categories, the introduction of electronic visas for Iranians has already facilitated travel for over 15,000 individuals.

The Role of BRICS in Strengthening Relations

BRICS serves as a vital platform for enhancing cooperation between Russia and Iran. The shared values of respect for international law, state sovereignty, and mutual assistance resonate with both nations. Dedov highlights:

• Iran’s interest in innovative and knowledge-intensive sectors.
• The mutual support for sharing expertise in various fields.

As both countries continue to deepen their ties through diplomatic, economic, and cultural channels, the future of Russian-Iranian relations appears promising, with substantial opportunities for growth and collaboration.

In conclusion, the ongoing efforts to strengthen trade, cultural exchanges, and collaborative projects signify a robust partnership between Russia and Iran. As both nations navigate these developments, the prospects for enhanced cooperation in various sectors remain bright, paving the way for a prosperous future.