Iran and Russia seek to deepen ties between free trade zones

Bilateral trade has been expanding rapidly amid Western sanctions against the two countries

Moscow and Tehran have discussed cooperation between their special trade zones, in a bid to boost commerce and investment, Russia’s Economic Development Ministry said on Thursday after 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 activities of the union are aimed at deepening trade, economic, transport and logistics cooperation between Russia and the countries of the Caspian region and states gravitating towards the North-South international transport corridor,” Volvach was quoted by the ministry press service as saying.

Earlier this year, Iran and the Russia-led Eurasian Economic Union (EEU) sealed a memorandum on free trade to ensure the free movement of goods, services, capital, and workers between member states.

Iran is able to exchange goods with EEU member states – namely Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan – on the basis of preferential trade. The union has provided discounts for Iranian goods, while Tehran has granted preferences to items originating from the Eurasian bloc.

Cooperation between Russia and Iran has been expanding rapidly amid Western sanctions against both countries. Between January and October 2022, trade between Moscow and Tehran reached $4 billion, surpassing the figure for the whole of 2021, according to Russia’s Customs Service. Russian exports to Iran surged by 27%, while imports from Tehran jumped by 10%, the data showed.

READ MORE: Iran signs up with Russia-led free trade zone – media

Last year, the nations reached several agreements, including for the purchase of aircraft equipment, and the joint construction of gas pipelines and gas field development.

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