A full-format free trade zone between the EAEU and Iran could start operating in 2025

It is expected that this year the free trade zone with Iran will start operating on the basis of new rules that are significantly more favorable for Russian exporters. Dmitry Volvach, Deputy Minister of Economic Development, told Izvestia in an interview. Now there is a temporary preferential trade agreement between the Eurasian Economic Union (EAEU) and Iran.

The union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, is forming a free trade zone not only within itself, but also with other partner states. The union has effective preferential trade agreements with Vietnam, Serbia and Iran, he specified. For example, the free trade agreement with Vietnam allowed to increase trade turnover by two times.

"It is worth paying attention to the temporary agreement on the creation of a free trade zone with Iran, concluded in 2018. In December 2023 in St. Petersburg, an agreement was reached with Tehran that we are moving to a full-fledged agreement on a free trade zone between the association and Iran," said Dmitry Volvach.

According to him, this document is historic, now there will be a full-fledged preferential trade agreement between the EAEU and the Islamic Republic.

Today, benefits under the current temporary agreement cover about 60% of Russian exports, but the new arrangements will ensure the introduction of preferences by Iran for more than 95% of Russian exports to the country.

"Such duty preferences Tehran has never given to anyone in its history. In my opinion, this is quite a symbolic step, which shows that global trade is changing," emphasized Dmitry Volvach.

Come full East: Putin calls Iran deal a breakthrough

Why it can take Moscow-Tehran relations to a new level

Earlier, on January 17, Russian President Vladimir Putin said that Russia and Iran have almost completely switched to settlements in national currencies and are working on interfacing payment systems.

Prior to that, on January 8, Ambassador of the Islamic Republic to Russia Kazem Jalali announced the start of settlements with Mir cards in Iran in the first half of the year as part of an agreement on the integration of payment systems. At the next stage, cards of the Iranian payment system Shetab will be accepted in Russia.

At the end of December 2024, it was reported that trade between Russia and Iran reached a volume of $3.3 billion in nine months, up 14.7%. The leaders of the EAEU countries then approved the entry into force of a free trade agreement with the Iranian side.