Members of the Russian-led Eurasian Economic Union (EEU) have signed a fully-fledged free trade agreement with Iran, as confirmed by Russia’s economy ministry and the EEU on Monday.
This new agreement will permanently replace a similar temporary pact that has been in force since 2019. The previous deal facilitated mutual trade with Iran, increasing it to $6.2 billion in 2022 from $2.4 billion in 2019.
The Eurasian Economic Union is comprised of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.
Both the region and Iran have become increasingly significant for the Kremlin, especially after Western sanctions over Moscow’s conflict in Ukraine limited Russia’s foreign trade routes, prompting the country to seek markets outside Europe.
Under the new deal, customs duties on almost 90% of goods will be eliminated, and a preferential trade regime will be established for almost all trade between Russia and Iran.
Russian Economy Minister Maxim Reshetnikov stated that the deal would allow Russian businesses to save around 27 billion rubles ($294 million) each year.