TEHRAN – A Russian high-ranking trade delegation will visit Tehran, concurrent with the 27th Iran International Oil, Gas, Refining and Petrochemical Exhibition (Iran Oil Show 2023), which will be held at the Tehran Permanent International Fairgrounds during May 17-20, Ahmad Asadzadeh, the Iranian deputy oil minister for international and commercial affairs, announced.

Referring to the telephone conversation between Iranian Oil Minister Javad Oji and Russia’s Deputy Prime Minister Alexander Novak, who are the chairmen of Iran-Russia Joint Economic Committee, on Sunday evening, the official said that the high-ranking delegation of Russia, headed by the deputy prime minister of this country, while participating in the B2B meetings of the two sides, will attend the official inauguration of Iran Oil Show.

As reported, Oji and Novak discussed the expansion of economic ties between the two countries during their telephone conversation.

The two sides talked about cooperation in banking, transit, oil, gas and petrochemical sectors, as well as the travel of the Russian delegation to Tehran.

Considered holding joint meetings to review bilateral cooperation and participating in B2B meetings as the main goals of the Russian delegation's trip to Tehran, Asadzadeh stated that during these meetings, bilateral cooperation in the banking, transit, oil, gas and petrochemical sectors will be reviewed.

Pointing to the presence of high-ranking Russian officials, including Elvira Nabiullina, the governor of the

Central Bank of the Russian Federation, in the mentioned delegation, Asadzadeh said that some documents will be signed by both parties on the sidelines of B2B meetings between Iranian and Russian directors.

Iran and Russia signed four documents for cooperation in a variety of areas at the end of the two countries’ 16th Joint Economic Committee meeting in Russia last November.

The strategic document for the development of bilateral relations between the Islamic Republic of Iran and the Russian Federation was signed by Iranian Oil Minister Javad Oji and Russia’s Deputy Prime Minister Alexander Novak, who co-chaired the meeting.

Speaking at the opening ceremony of the event, Oji said that the Iranian Oil Ministry, as the body in charge of the Iran-Russia Joint Economic Committee, will not only take all the necessary measures to expand strategic cooperation between the two sides in the energy sector, but it will also support the cooperation between all Iranian and Russian ministries, organizations, institutions, and companies.

He underlined the need for establishing extensive banking cooperation between the two countries for creating a suitable and reliable payment mechanism in order to facilitate mutual trade and investment, as well as swapping energy carriers, especially gas, crude oil, and petroleum products.

The minister said that the expansion of cooperation between Iran and Russia will make international sanctions against the two countries ineffective.

Oji underlined the capacities of Iran and Russia in different areas and the sanctions targeting both countries, expressing hope that the signed MOUs and agreements in the meeting will lead to a positive expansion of economic relations between the two countries.

Iran and Russia also signed a memorandum of understanding (MOU) on transit cooperation last week.

The MOU on tripartite cooperation between the Iran Transportation Development Fund, the International Coordinating Council on Trans-Eurasian Transportation (CCTT), and the Economic Development Center of the Commonwealth of Independent States (CIS) was signed in Moscow.

This memorandum of understanding was inked in the presence of Iran’s Ambassador in Russia Kazem Jalali, Russian Deputy Transport Minister Dmitry Zverev, Head of Iran Transport Development Fund Davoud Danesh-Jafari, Director-General of the Business Center for Economic Development Center of the CIS (BC CIS) Vadim Ganin, and Secretary-General of International Coordination Council on Trans-Eurasian Transportation (CCTT) Gennady Bessonov.

Based on this MOU, the signatory parties cooperate with each other to increase trade, transit and storage of goods along international corridors, especially the North-South corridor.

The signatories of this memorandum also emphasized the exchange of information, carrying out joint projects, and exchange of specialized delegations to achieve these goals.

Earlier this month, during a meeting between Iranian Transport and Urban Development Minister Mehrdad Bazrpash and a visiting Russian delegation headed by Igor Yevgenyevich Levitin, a senior aide to the president of the Russian Federation, the two sides emphasized the necessity to boost the transit of commodities through the Caspian Sea.

During the meeting, held at the place of the Iranian Transport and Urban Development Ministry in Tehran on Sunday evening, the two countries emphasized the development of cooperation in the air, sea, rail, and road sectors and "multimodal transportation".

In the mentioned meeting, the Iranian minister considered the development of transportation cooperation between the two countries to be beneficial for both sides and said while the maritime trade between the ports of the two countries has a very long history, the use of the capacity of the active ports of the two countries in the Caspian Sea can be considered for new cooperation.

The senior aide to the president of the Russian Federation, for his part, summarized the expert meetings and the visit of the Russian delegation to the Rasht-Astara railway route and called for the development of transportation cooperation in all areas.

It should be also mentioned that Iran and Russia reached an agreement last year for reviving the idle section of the International North-South Transport Corridor (INSTC) in Iran for expanding transit ties.

The first Russian freight train arrived at Iran’s Sarakhs railway station in Khorasan-Razavi province on the border with Turkmenistan last July to officially launch the eastern section of the INSTC.

The Russian train was allowed into the Iranian border in a ceremony attended by First Vice President Mohammad Mokhber along with transport, oil, industry, and agriculture ministers as well as the vice president for science and technology.

The second Russian transit cargo for India entered Iran also from the northeastern Sarakhs border in October.

Iran and Russia are also cooperating in the maritime sector to use the Caspian Sea to shorten the transit route from Russia to India.

Back in late January, Vyacheslav Volodin, the speaker of Russia’s State Duma, said that the share of the ruble and the rial in mutual settlements between Iran and Russia exceeds 60 percent.

As reported by Russia Today, making the remarks in a government meeting, Volodin said, “It is important to use settlements in national currencies more actively. Much has already been done in this regard – now the share of the ruble and the rial in mutual settlements exceeds 60 percent. The work on the joint application of national payment systems is being completed. This will minimize the impact of sanctions, but also, of course, address issues related to mutually beneficial cooperation,”

According to Volodin, both countries should now focus on boosting the efficiency of mutual cooperation in the financial and banking sectors, in particular, by increasing the use of national currencies in their trade exchanges, using the Russian ‘Mir’ and Iranian ‘Shetab’ payment systems.

The Russian official further announced that trade between Iran and Russia surged by 15 percent in 2022, reaching $4.6 billion.

Volodin noted that the two countries are actively taking steps to build up mutual trade, saying: “extremely important in the conditions of sanctions pressure on our countries.”

He also praised the memorandum on free trade between Iran and the Russia-led Eurasian Economic Union (EAEU), which was finalized last week, saying that the agreement will help expand Iran-Russia trade even further.

Trade with Iran is significant for Russia on its own but is also seen as a “logistical bridge” between Russia and West Asia, South Asia, and Southeast Asia, due to Iran’s geographical placement.

Cooperation between the two countries gained momentum last year, amid Western sanctions on both Moscow and Tehran. Throughout 2022, both sides reached a number of agreements expanding mutual cooperation, from barter supply deals for Iranian turbines, spare parts, and aircraft equipment, to contracts for the joint construction of gas pipelines.

MA

Photo: Iranian Oil Minister Javad Oji (R) and Russia’s Deputy Prime Minister Alexander Novak