According to Russia’s TASS news agency, there is a possibility of a free trade zone agreement between Iran, Russia, and several countries in the vast Eurasian region being finalized by the end of the year.
In an interview with TASS, Russian Deputy Prime Minister Alexei Overchuk stated that discussions between the Eurasian Economic Union, consisting of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, and Iran are in the final stages.
Overchuk expressed optimism, saying, “We are moving forward,” and expressed hope that such an agreement could be signed by the end of the year.
For Russia, both the Eurasian region and Iran have gained importance due to Western sanctions imposed over its involvement in Ukraine, which limited Russia’s foreign trade routes and necessitated the exploration of markets beyond Europe.
Despite closer ties between Moscow and Tehran since Russia’s invasion of Ukraine in February 2022, with significant purchases of Iranian-made drones, trade between the two markets has only seen moderate growth.
According to government data, Russian-Iranian commodity turnover increased by 20% in 2022, which is two-thirds the overall growth rate Moscow experienced with China, another important partner with whom Russia has strengthened its political and economic alliance in recent years.
The regional agreement with Iran would replace and expand an existing interim pact that already provides for a reduction in customs duties on hundreds of goods categories.
Starting in November 2022, Russia began exchanging oil products with Iran, and Tehran has expressed its expectation for significant volumes of oil and gas swaps with Moscow.
Overchuk also mentioned ongoing negotiations among the Eurasian Economic Union countries to establish a common gas market, but provided limited details on the matter.
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