The agreement between the EAEU and Iran will open up new opportunities for exports from the Russian Federation

The free Trade Agreement between the Eurasian Economic Union (EAEU) and Iran, which comes into force on May 15, will open up new competitive opportunities for Russian companies. This was stated to Izvestia by Russian Deputy Prime Minister Alexei Overchuk.

"The entry into force of the agreement on a free trade zone between the EAEU and the Islamic Republic of Iran, on the one hand, creates better competitive conditions for Russian exporters to enter the Iranian market with a population of 90 million people, and on the other hand, it allows to increase the product supply in our domestic market," Overchuk said.

According to him, Iran, which has been protecting its market for decades and developing domestic production competencies, is opening it up to goods from third countries for the first time. This decision was made possible due to the special relationship of trust between Iran and the EAEU and indicates the formation of a new economic macroregion, in which the free movement of goods is ensured.

The agreement will allow Russian exporters to supply products to Iran that were previously uncompetitive due to high duties, and annual savings on import customs duties at current trade volumes, according to Overchuk, will amount to at least $300 million.

"The greatest benefits, for example, will be received by exporters of rolled products and iron ore raw materials, metal structures and metal products, pipes, non-ferrous metals, paper, radar equipment. In the agricultural sector, the benefits of trade liberalization are expected in the export of grain, sunflower, soybean and rapeseed oil, as well as sunflower seeds," the Deputy Prime Minister stressed.

In addition, the agreement will provide an incentive to increase the utilization of the international North–South transport corridor in both directions, he concluded.

Program document: details of negotiations on Iran's nuclear dossier revealed in Russia

On April 8, trilateral consultations were held in Moscow with the participation of Tehran and Beijing.

Earlier, on May 6, Russian President Vladimir Putin had a telephone conversation with Iranian President Masoud Peseshkian. It was reported that the parties discussed issues of further development of Russian-Iranian cooperation based on the Comprehensive Strategic Partnership Agreement between the two countries.

Earlier, on April 21, Putin signed a law ratifying the Comprehensive strategic partnership agreement with Iran. It was noted that the document provides for equal and mutually beneficial cooperation between the countries in the fields of politics, defense, economy, security, trade, investment, as well as energy, infrastructure, transport and communications.