TEHRAN – Iran’s Guardian Council has approved the bill on the free trade agreement (FTA) between the Islamic Republic of Iran and the Eurasian Economic Union (EAEU) and its member states.

Iran's parliament initially approved the agreement on December 23, 2024. However, the Guardian Council raised objections, which lawmakers addressed in a revised version passed on February 5, 2025.

The EAEU, comprising Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia, signed a provisional free trade agreement with Iran in 2018, which came into effect in October 2019. This interim agreement was extended until October 27, 2025, or until a final agreement is reached.

On December 25, 2023, Iran and the EAEU signed a comprehensive free trade agreement, eliminating customs duties on nearly 90 percent of goods, thereby establishing a preferential regime for almost all trade between the parties.

Economic analysts suggest the FTA could significantly boost trade volume between Iran and the EAEU, potentially exceeding $10 billion annually within a few years. Beyond trade, the agreement could encourage joint ventures, knowledge exchange, and technology transfer in industries such as energy, transportation, and manufacturing.

The Iran-EAEU FTA aligns with Tehran's broader goal of pivoting toward regional partnerships in response to Western economic sanctions. Strengthening ties with the EAEU provides Iran with diversified trade routes and reduces dependency on traditional markets.

The agreement is set to be implemented in early 2025, marking a significant milestone in Iran's efforts to enhance economic cooperation with neighboring countries and regional blocs.

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