Iran and Russia Set to Boost Trade Turnover to $10 Billion in Just 4 Years!
The landscape of business cooperation between Russia and Iran is undergoing a significant transformation, with a remarkable increase in the number of Russian entrepreneurs engaging in partnerships with Iranian businesses. This surge can be attributed to various factors, including the recent signing of the Comprehensive Strategic Partnership Treaty, which has set the stage for enhanced economic ties and trade opportunities.
In a recent interview with TV BRICS, Aleksander Sharov, a prominent businessman and expert on Iranian cooperation, shed light on this growing trend. He noted that the collaboration between these two nations has seen a threefold increase in recent years, indicating a robust interest in fostering economic relations.
According to Sharov, the Comprehensive Strategic Partnership Treaty has acted as a catalyst for deepening economic ties, leading to:
- Increased trade turnover
- Enhanced business activity
- Opportunities for various industries, particularly in energy and agriculture
Sharov expressed optimism about the future of bilateral trade, forecasting that it could escalate from US$4 billion to US$10 billion in the next 3-4 years. He highlighted key sectors that could drive this growth, including:
- Gas supplies
- Petrochemicals
- Food products
- Development of trans-Caspian transport routes
Furthermore, Sharov emphasized the importance of collaboration between Moscow and Tehran within the framework of the Eurasian Economic Union (EAEU). He stated, “Iran is discussing a scenario of closer connection to the EAEU – first as an observer and then, possibly, as a full member.” This move towards closer ties highlights the strategic importance of the EAEU for Iran as it seeks to expand its economic horizons.
The free trade zone agreement between Iran and the EAEU, which will come into effect on 15 May, is poised to further bolster trade relations. This agreement is particularly significant as it entails the cancellation of duties on more than 80 percent of goods traded between Iran and EAEU member states, including Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
As this agreement takes shape, businesses on both sides are likely to benefit from reduced tariffs and increased market access. The potential for mutual growth is substantial as both nations seek to maximize their economic capabilities through cooperation.
In conclusion, the enhanced collaboration between Russian and Iranian entrepreneurs is not only a reflection of evolving geopolitical dynamics but also a promising avenue for economic growth. With significant increases in bilateral trade anticipated, both countries stand to gain from their strategic partnership. As Aleksander Sharov pointed out, the next few years will be crucial in shaping the future of Russia-Iran economic relations, particularly with the implementation of the EAEU free trade agreement.
