Iran and Russia Sign Landmark MoU Following Joint Economic Commission Meeting

In recent developments surrounding Iran-Russia economic cooperation, Mohsen Paknejad addressed a press conference following the commission’s meeting. This gathering marked a significant step forward with representatives from various specialized committees, including trade, economics, finance, banking, transportation, customs, industry, mining, energy, health, agriculture, tourism, and technology.

During the press conference, Paknejad expressed gratitude to Russia for hosting the event, noting that the decisions made by expert committees and the documents signed during this meeting have established a foundation for enhanced bilateral economic ties, especially in light of evolving international conditions.

Key discussion points included:

• Cooperation in upstream oil and gas: The focus was on following up on agreements with Gazprom and establishing a gas hub in Iran.
• Gas trade: Emphasis was placed on collaborating within the petrochemical value chain and facilitating oil product swaps.
• Nuclear energy collaboration: Strategic cooperation was highlighted, particularly in joint projects for the peaceful use of nuclear power.
• Transport initiatives: Activating the International North-South Transport Corridor was prioritized, with particular attention on completing the Rasht-Astara railway as a vital link.
• Banking cooperation: Expanding banking ties and aligning standards to enhance trade was discussed.
• Strengthening sectors: There were calls for enhanced collaboration in agriculture, health, and customs.

While the commission remains open to exploring additional cooperation avenues, Paknejad stressed that these areas will be the primary focus moving forward. He indicated that progress in these sectors will serve as a benchmark for assessing the trajectory of Iran-Russia economic relations.

Paknejad also referenced the approval of a comprehensive strategic partnership treaty by both countries’ parliaments, stating that its enforcement would usher in a new era of sustained and balanced cooperation. As the lead of the commission, the Oil Ministry is committed to realizing these agreements.

He emphasized the importance of oversight to eliminate domestic challenges, foster interagency coordination, and initiate new strategies that align with current conditions. Paknejad expressed optimism for establishing stable, operational, and effective cooperation between Iran and Russia.

When queried about the involvement of Russian companies in Iran’s energy sector, Paknejad highlighted that current bilateral trade, hovering around $5 billion, is significantly below its true potential. The anticipated free trade agreement with the Eurasian Economic Union, which is expected to gain approval from the Iranian Parliament by May 15, is projected to further boost Russian investment in Iran’s oil and gas sectors.

He mentioned that there are currently four active oil contracts involving Russian companies in Iran, which are focused on developing seven oil fields with an investment totaling approximately $4 billion. Paknejad expressed a belief that this figure should increase, and he is hopeful that continued follow-ups will lead to an expanded presence of Russian firms in Iran’s energy projects, especially with the impending free trade deal.

Paknejad reiterated Iran’s readiness for closer energy cooperation with Russia, emphasizing the potential for tangible benefits for both nations.

Russian Energy Minister Sergey Tsivilyov also addressed questions, highlighting existing oil and gas agreements, including a notable deal from December 2023 regarding Russian gas transit to Iran. He confirmed that this project, which consists of two phases, will soon enter the implementation stage, further enhancing the role of Russian companies in Iran’s energy market.

Tsivilyov articulated that the cooperation is rooted in shared strategic interests, which could elevate Iran’s significance within regional energy supply chains. He also mentioned the high-level partnership treaty signed earlier this year as a transformative step, creating new opportunities for private sector engagement.

The upcoming Iran-EAEU free trade agreement, effective from May 15, is expected to eliminate major trade barriers, setting the stage for a significant leap in economic and energy cooperation, with bilateral trade projected to reach $4.8 billion in 2024. He underscored the joint commission’s vital role in maximizing the potential of both nations.

In summary, as Iran and Russia deepen their economic ties through strategic agreements and initiatives, the focus remains on fostering a mutually beneficial partnership that enhances energy cooperation, trade, and overall bilateral relations.

— MNA/Shana.ir