TEHRAN - Iran and Armenia signed a barter trade agreement on the sidelines of the 3rd Eurasian Economic Forum in Yerevan on Tuesday.

The agreement was signed by Head of Iran’s Trade Promotion Organization (TPO) Mohammad-Ali Dehghan Dehnavi at the presence of Iranian Minister of Industry, Mining, and Trade Mohammad Atabek and Armenian Economy Minister Gevorg Papoyan.

Under the agreement, the two countries will appoint representative companies to implement barter trade after three months from the signing of the agreement.

TPO will be the body in charge of selecting Iranian companies to implement the mentioned agreement.

Iran views barter agreements as a major tool to avoid U.S. sanctions that restrict its access to international trade.

The signing of the deal came after Iran opened its trade center in Yerevan. The center, built over an area of 18,000-square meters, has 107 booths and stalls that sell Iranian-made consumer goods, chemicals and other industrial products. Armenian businesses have also a share in the retail and wholesale facility.

Iranian ambassador in Yerevan Mehdi Sobhani described the facility as the “largest Iranian trade center in the world”, saying it will lead to a major increase in trade ties between Iran and Armenia.

Speaking at the signing ceremony, the parties emphasized the removal of financial and banking obstacles and restrictions, facilitating the issuance of guarantees for Iranian technical and engineering service contractors in Armenia and some other customs restrictions.

The Armenian side announced the decision of the Armenian government to invest in Iran's Chabahar Port.

He also referred to the importance of opening a commercial center of Iran in Armenia, calling on Atabek for support and assistance in setting up an Armenian business center in Iran.

Iran and Armenia seek to increase the value of their trade ties to $3 billion per year. Iran also views Armenia as a gateway to trade with members of the Eurasian Economic Union (EAEU).

Iran and the EAEU, which includes Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia, are currently in a preferential trade arrangement but they will enforce a free trade deal signed in December last year once parliaments of the two sides ratify the agreement.

EF/MA