TEHRAN - Iran's observer membership in the Eurasian Economic Union (EAEU) was formalized on Thursday, December 26, 2024, IRNA reported.

Leaders of the five EAEU member states signed the agreement during a ceremony in Saint Petersburg, attended by Iran's Minister of Industry, Mining, and Trade Seyyed Mohammad Atabak.

According to IRNA, the event concluded the Supreme Council meeting of the EAEU, where approximately 17 agreements, including Iran's observer status, were signed. Armenian Prime Minister Nikol Pashinyan, presiding over the union in 2024, remotely approved the documents via video conference.

Kremlin: Free trade agreement with Iran ratified

The summit also approved the implementation of the EAEU-Iran free trade agreement (FTA). Negotiated last year in Saint Petersburg, the FTA required ratification by all member states and the Iranian Parliament, where the agreement's general provisions were recently approved.

The deal, set to take effect within two months following Iran's legislative approval, will eliminate tariffs on approximately 87 percent of Iranian exports to EAEU member countries. Similarly, EAEU member exports to Iran will enjoy duty-free privileges.

Russian President Vladimir Putin emphasized the union's role in fostering trade and cooperation, describing the EAEU as a self-sufficient center in the emerging multipolar world.

Iran eyes broader cooperation with EAEU

During the EAEU summit, Atabak expressed Tehran's readiness to expand collaboration with the EAEU beyond trade, highlighting transport, transit, and energy security as potential areas of cooperation.

The official noted Iran's strategic location and transit capabilities, offering to connect the EAEU to markets in the Persian Gulf, South Asia, and Southeast Asia. He welcomed the observer status as a milestone in Iran's growing relations with the union and signaled readiness for broader economic integration.

Trade growth in 2024

On the sidelines of the gathering, Bakytzhan Sagintayev, head of the Eurasian Economic Commission, lauded the 12.8 percent growth in trade between Iran and the EAEU during the first ten months of 2024.

Iran's exports to the EAEU grew by eight percent while imports from the union rose by 16 percent. Sagintayev attributed the surge to a 2018 provisional trade agreement that nearly doubled bilateral trade over five years.

Both sides agreed to strengthen cooperation in logistics, infrastructure, agriculture, petrochemicals, and scientific research. Sagintayev underscored the potential for expanding economic ties, particularly following the anticipated implementation of the free trade agreement.

This collaboration marks a significant step toward enhancing economic and political relations between Iran and the Eurasian bloc.

EF/MA