Member states of the Eurasian Economic Union (EAEU) officially signed on Monday a comprehensive free trade agreement with Iran during a meeting of the Supreme Eurasian Economic Council in St. Petersburg.

The agreement, intended to replace a temporary accord in effect since 2019, was signed by key representatives, including the Chairman of the Board of the Eurasian Economic Commission (EEC) Mikhail Myasnikovich, Russian Deputy Prime Minister Alexei Overchuk, and Iranian Minister of Industry, Mine, and Trade Abbas Aliabadi. Belarus, Armenia, Kazakhstan, and Kyrgyzstan were also signatories.

The temporary agreement on establishing a free trade zone between the EAEU and Iran, initially concluded on May 17, 2018, has been in effect since October 27, 2019.

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Russian President Vladimir Putin highlighted the strategic importance of the free trade agreement, stating that it would grant duty-free access to nearly all categories of goods to Iran's market. Putin noted that the deal would significantly reduce non-tariff barriers and contribute to improved commercial cooperation.

"After the agreement comes into force, almost all categories of goods produced in the Union will receive duty-free access to the vast Iranian market of 90 million people, and non-tariff barriers will be significantly reduced. The business of our countries, which actively trade with Iranian partners, are interested in this, and now the conditions for such commercial cooperation will be noticeably improved," Putin said.

The leaders of Eurasian Economic Union (EAEU) now hold a meeting following the signing of a free trade agreement between #Iran and the EAEU. #Russia's President Putin is also present in the session. Iranian Industry and Trade Minister is representing Iran in the meeting. pic.twitter.com/2yaUVr8UXj

— Iran Nuances (@IranNuances) December 25, 2023

The Russian head of State added that members of the EAEU Council unanimously agreed to approve the declaration.

"This idea was supported, all members of the Supreme Council agreed to approve the declaration, and we will formalize the corresponding decision following the results of our meeting. In fact, the declaration is a new document of a program nature, which provides for steps to increase joint efforts in key sectors, as well as identifies additional areas of interaction," Putin noted.

Despite global difficulties and tensions, Putin underscored the ongoing development of cooperation within the EAEU. He highlighted that mutual settlements through the use of national currencies had surpassed 90%, a figure expected to increase with collaborative financial sector measures implemented by member countries.

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