Iran Boosts Industrial Goods Exports to Russia: A Rising Trade Partnership
The recent developments in trade relations between Iran and Russia highlight a promising trajectory, with significant growth expected in the coming years. Akbar Godari, the head of TPO’s Central Asia, Caucasus, and Russia Office, announced that Iran’s exports to Russia are projected to reach around $1.4 billion by the end of the Iranian calendar year 1404, which corresponds to March 20, 2026. This is a notable increase from the $1.1 billion reported at the end of 1403 (March 2025).
According to Godari, the majority of imports from Russia to Iran consist of grains and oilseeds, accounting for over 70 percent of total imports. The remaining imports include production line machinery. In contrast, Iran’s exports to Russia feature a diverse range of products, including:
- 45 percent agricultural products
- 37 percent industrial goods
- 10 percent petrochemical and polymer products
- 7 to 8 percent minerals
Godari emphasized the transformation in the composition of Iran’s exports over recent years, noting, “In the years 1399 and 1400 (2020-2022), the volume of Iran’s exports to Russia was about $500 million, over 90 percent of which consisted of fruits and vegetables.” He highlighted that while agricultural exports remain significant, the share of industrial goods has seen a substantial increase, nearly doubling over the past three years.
In a related development, the Iranian Ministry of Foreign Affairs announced that the Iranian–Russian Treaty on Comprehensive Strategic Partnership became legally binding on October 2, 2025. The ministry stated, “The conclusion of the treaty mirrors the willpower of leaders of the two countries to further deepen and enhance relations in all areas of mutual interest based on mutual respect, good neighborliness, and common interests of the two nations.”
The treaty marks a significant milestone in the history of bilateral relations, envisioning the strengthening of ties across various sectors. It outlines priorities for cooperation in areas such as:
- Diplomacy
- Economics
- Trade
- Science and Technology
- Energy
- Investment
- Defense
- Culture
Moreover, the treaty lays the groundwork for enhanced coordination and synergy aimed at safeguarding international peace and security while addressing global challenges. The statement further noted, “Being cognizant of the fundamental significance of safeguarding the principles and objectives of the UN Charter, Iran and Russia spare no effort to uphold multilateralism and respect for international law.”
The Russian Foreign Ministry also confirmed the official enactment of the treaty, highlighting it as a landmark event in the bilateral relationship. Signed on January 17, 2025, by Russian President Vladimir Putin and Iranian President Masoud Pezeshkian, this treaty aims to improve collaboration across all sectors, including defense, energy, finance, transportation, industries, agriculture, culture, science, and technology.
In another key meeting, Iran’s Oil Minister Mohsen Paknejad engaged with Russian Energy Minister Sergei Tsivilyov and Gazprom CEO Alexei Miller in Tehran to discuss economic cooperation and preparations for the upcoming meeting of the Iran-Russia Joint Economic Committee. Paknejad remarked that the discussions were a follow-up to the outcomes of the 18th Joint Committee held in Moscow, emphasizing the need for continued dialogue and revision of specific cooperation areas.
During the session held on September 23, Iran’s Industry, Mining, and Trade Minister Seyed Mohammad Atabak met with Russian Economic Development Minister Maxim Reshetnikov in Moscow. This meeting focused on the implementation of the Iran-Eurasian Economic Union (EAEU) free trade agreement, which has been a pivotal element in enhancing bilateral economic relations.
Reshetnikov pointed out that 2025 represents a turning point in these relations, noting significant developments such as the signing of the comprehensive strategic treaty and the enforcement of the free trade agreement with the EAEU. He reported a 35 percent increase in trade between Iran and Russia in May and June 2025 compared to the same period the previous year. This growth is attributed to the free trade agreement and the mutual commitment to expanding commercial ties.
Atabak, alongside Iranian Ambassador Kazem Jalali, stressed the importance of the private sector in deepening trade relations. He called for the removal of barriers, such as financial transaction restrictions and differing product standards. Additionally, he reaffirmed Iran’s dedication to completing the International North-South Transit Corridor (INSTC), announcing that groundwork for the Rasht–Astara railway is ready for construction in the coming months.
In December 2023, Iran and the EAEU signed their free trade agreement, which came into effect in May 2025 after ratification by member states. This agreement eliminates tariffs on approximately 87 percent of goods traded between the parties. The EAEU comprises Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, with Iran, Uzbekistan, and Cuba holding observer status.
According to data from Iran’s Customs Administration, exports to EAEU member states increased by 20 percent in the previous Iranian calendar year, exceeding $2.0 billion. The total export volume to EAEU countries reached 5.059 million metric tons, reflecting a 21 percent increase from the prior year.
The breakdown of exports includes:
- $1.121 billion to Russia
- $505 million to Armenia
- $278 million to Kazakhstan
- $111 million to Kyrgyzstan
- $21 million to Belarus
Furthermore, Iran imported 2.174 million metric tons of goods worth $1.51 billion from EAEU member states during the same period, marking a 39 percent decline in import volume and a 20 percent drop in value compared to the previous year. Iranian officials project that steel and petrochemicals will account for 50 percent of the objectives set under the free trade agreement with the EAEU, emphasizing their crucial role in boosting exports and activating trade opportunities in the region.
