Iran-Russia trade up by 20%, expected to increase 10 times more

By Al Mayadeen English
Source: Agencies
20 Jun 2023 00:01

Russia still expects an increase in its annual trade with Iran by more than ten times within a few years to reach a $40 billion target.

Russian President Vladimir Putin meets with his Iranian counterpart Ebrahim Raisi on the sidelines of the Shanghai Cooperation Organisation (SCO) leaders' summit in Samarkand on September 15, 2022. (AFP)

President of Russia’s Chamber of Commerce and Industry (TPPRF), Sergey Katyrin, announced that trade between Iran and Russia reached around $4.9 billion last year, recording a 20% increase from 2021, as cited in a Monday report by Iran’s IRIB News.

Russia still expects an increase in its annual trade with Iran by more than 10 times within a few years to reach a target of $40 billion, according to Katyrin.

That was the same target set in June of last year by Iranian Petroleum Minister Javad Owji who expected the volume of annual trade between Iran and Russia to hit $40 billion within the next 18 months.

Katryin was quoted saying that Russian firms are showing keen interest to enter the Iranian market since it links them to markets in the Middle East and South and Southeast Asia.

He added that great opportunities for cooperation between Iranian and Russian businesses are present in fields like agriculture, technology, energy, engineering, textile, and tourism.

Introducing joint investment projects in special economic zones of Iran and Russia is necessary per Katryin, where strict laws are eased to help boost trade and manufacturing operations.

Joint projects between the two nations are already in the works. Iranian media reported last month that Russia and Iran have agreed to build 20 cargo vessels, and they are moving forward with their mutual goal to end US hegemony over financial transactions and the international monetary systems by opening the first representative office of a Russian bank in Iran.

This update comes hours after Russian Deputy Prime Minister Alexey Overchuk said a key agreement between the Russia-led Eurasian Economic Union (EAEU) and Iran to form a free trade zone could be done before the end of the year.

Back in April, Iran's first vice president Mohammad Mokhber said that "Iran and Russia can become the export center of some food items in the region with joint production and investment and meet some of the needs of the countries in the region".