TEHRAN – Iran’s Industry, Mining and Trade Minister Seyed Mohammad Atabak met Russian Economic Development Minister Maxim Reshetnikov in Moscow during the first joint committee session on implementing the Iran–Eurasian Economic Union (EAEU) free trade agreement.

Reshetnikov said 2025 marked a turning point in bilateral economic relations, citing key developments such as the signing of a comprehensive strategic treaty between Moscow and Tehran, the enforcement of the free trade agreement with the EAEU, and Iran’s admission as an observer in the bloc.

He noted that trade between Iran and Russia grew by 35 percent in May and June 2025 compared with the same period a year earlier, attributing the rise to the free trade agreement and the determination of both countries to expand commercial ties.

Reshetnikov reaffirmed Russia’s commitment to the letter and spirit of the accord and voiced hope for faster progress.

Atabak, accompanied by Iranian Ambassador Kazem Jalali, emphasized the role of the private sector in deepening trade and called for removal of obstacles such as financial transaction restrictions and divergent product standards.

He also underlined Iran’s commitment to completing the International North–South Transit Corridor (INSTC), saying groundwork for the Rasht–Astara railway had been prepared and construction would start in the coming months.

Iran and the EAEU signed their free trade agreement in St. Petersburg in December 2023. After ratification by member states, it came into effect in May 2025, eliminating tariffs on about 87 percent of goods traded.

The EAEU groups Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia, with Iran, Uzbekistan and Cuba holding observer status.

According to the figures released by Iran’s Customs Administration, Iran’s exports to member states of the Eurasian Economic Union (EAEU) rose by 20 percent in the previous Iranian calendar year (ended on March 19), reaching over $2.0 billion.

The volume of exports to EAEU countries totaled 5.059 million metric tons—up 21 percent compared to the previous year.

Breakdown of exports includes $1.121 billion to Russia, $505 million to Armenia, $278 million to Kazakhstan, $111 million to Kyrgyzstan, and $21 million to Belarus.

Iran also imported 2.174 million metric tons of goods worth $1.51 billion from EAEU member states in the same period. This marks a 39 percent decline in import volume and a 20 percent drop in value compared to the previous year.

Iranian officials have said that steel and petrochemicals are expected to account for 50 percent of the objectives set under Iran’s free trade agreement (FTA) with the Eurasian Economic Union (EAEU), highlighting the sectors’ pivotal role in boosting exports and activating trade opportunities in the region.

On August 15, Mohammad Ali Dehghan Dehnavi, head of the Trade Promotion Organization of Iran (TPO), said the FTA, which entered into force on May 15, 2025, is unprecedented for Iran, reducing tariffs on 87 percent of traded goods.

He noted that while previous preferential trade agreements with the EAEU had expanded trade volumes, this latest agreement presents a unique opportunity for deeper integration.

“Trade agreements create both opportunities and challenges. The overall outcome is positive for both sides if vulnerabilities are addressed and opportunities maximized,” Dehnavi said. He emphasized that steel and petrochemical industries are major drivers of production and exports, and leveraging them effectively could achieve half of Iran’s FTA objectives.

The official called on the private sector to actively engage in Eurasian markets, pointing to research identifying which Iranian products have the highest export potential. “Private companies should focus on maximizing profitability, while policymakers ensure collective benefits such as employment, economic growth, and foreign currency inflows,” he said.

Dehnavi also noted that export opportunities vary across member states, highlighting Russia as one of the most lucrative markets for Iranian products and promising further studies to optimize engagement in the region.

According to Elham Haji Karimi, head of the Iran-EAEU FTA secretariat, the agreement, signed in December 2023 after more than two years of negotiations, covers 11 chapters, including trade in goods, technical measures, sanitary standards, rules of origin, customs cooperation, dispute resolution, government procurement, and sectoral cooperation in transport, energy, automotive industries, and free trade zones.

EF/MA