TEHRAN (Iran News) –Iran and Turkey inked 10 cooperation documents and memorandums of understanding (MOUs) to boost bilateral investment and economic cooperation between the two countries during Iranian President Raisi’s official trip to the neighboring country on Wednesday, IRNA reported.

During President Raisi’s visit to Ankara, the two sides held the eighth meeting of the Iran-Turkey Supreme Council of Economic Cooperation which was also attended by the Turkish President Recep Tayyip Erdogan.

The signed documents and memorandums of understanding (MOUs) cover a variety of areas including the use of Iran’s foreign currency resources in Turkey, connecting power grids, railway and road construction, investment in gas fields, construction of a new gas pipeline from Iran to Turkey, strengthening air transportation cooperation, and easing the trade between the two countries traders and businesspersons.

Iran to use foreign currency resources in Turkey in new deal

On the sidelines of the two countries’ supreme economic cooperation council meeting, the Central Bank of Iran (CBI) reached an agreement with Turkish banking authorities to use Iranian foreign currency resources in that country.

According to the CBI Governor Mohammad Reza Farzin, who was part of a high-level political and economic delegation led by President Raisi to Ankara, Iran has good foreign currency resources in Turkey and wants to use them more.

“We discussed with the governor of the central bank, the minister of economy, and other Turkish officials about how to use these resources resulting from Iran’s gas export there”, he said.

Inking contract to connect power grids

Iran Grid Management Company and the Turkish Electricity Transmission Company (TEIAS) also signed an agreement on the sidelines of the mentioned gathering to make the Khoy-Van grid line operational.

Iran’s Mehdi Moghimzadeh and Turkey’s Orhan Kaldirim signed the contract for the connection of the 400-kilovolt BtB HVDC line between Khoy (Iran) and Van (Turkey) during a meeting in Ankara on Wednesday with the presence of Raisi and Erdogan.

Moghimzadeh said that the operation requires state-of-the-art equipment and is also Iran’s first experience in cross-border grid connection via HVDC infrastructure.

The pilot operation of the BtB HVDC was successfully carried out last year, the Iranian manager said, adding that the new agreement paves the way for real operation, which can create an opportunity to exchange power with Turkey and some European countries.

Raisi calls for removing barriers to expansion of trade ties

Addressing the Iranian and Turkish businesspersons at the meeting, Raisi emphasized efforts to remove the existing obstacles in the way of bolstering economic ties between Iran and Turkey and to increase the value of annual trade to $30 billion.

The Iranian president expressed hope that the meeting will be a turning point in promoting the trade and economic relations between the two countries.

Iran is determined to boost the level of trade and economic relations with Turkey, Raisi said, adding that the two countries inked several MOUs and agreements for boosting mutual ties in the fields of trade and economy.

Iran and Turkey enjoy high potential to boost their activities in all fields, especially trade and economy, Raisi emphasized.

The two countries have agreed to increase the value of the annual bilateral trade to $30 billion, he said, calling on the entrepreneurs of the two countries to make their utmost efforts in line with materializing this objective.

Raisi also urged responsible officials and organizations of the two countries to remove the trade barriers facing the entrepreneurs of the two countries.

He pointed to the cooperation between Iran and Turkey in the regional and international arenas and noted that the Islamic Republic of Iran attaches great importance to its relations with neighboring and Muslim states.

Private sectors urge to play key role in realizing $30b trade target

The newly elected Head of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Samad Hassanzadeh, who also accompanied Raisi in his visit to Turkey, said in his turn that Iranian and Turkish private sectors should make their utmost efforts in realizing the goal of achieving the $30 billion annual trade between the two countries.

Addressing a group of Iranian and Turkish businesspersons on Wednesday, Hassanzadeh called on the private sectors of the two countries to play a leading role in realizing the two countries’ trade objective.

He pointed to the deep cultural, religious, and historical relations between Iran and Turkey that date back to long ago and noted that the two countries have managed to bolster bilateral cooperation in all fields, especially in the trade and economic fields.

He added that the current volume of trade between the two countries is not acceptable and should grow.

Tehran-Ankara trade hits $9.5b in 10 months

The head of the Islamic Republic of Iran Customs Administration (IRICA) has put the value of the trade exchanges between Iran and Turkey in the first 10 months of the current Iranian calendar year (March 21, 2023-January 20, 2024) at $9.5 billion.

The two countries exchanged 10.297 million tons of non-oil products, valued at $9.541 billion, in the mentioned period, Mohammad Rezvanifar stated.

The deputy minister of economy added that 6.751 million tons of goods, valued at $3.498 billion, were exported from Iran to the neighboring country, showing a 47.51 and 47.11 percent decline compared to last year’s corresponding period.

In this period, Iran imported 3.546 million tons of products, valued at $6.44 billion, from Turkey, registering a 16.93 and 18.74 percent hike compared to last year’s corresponding period, he noted.

Rezvanifar further said that Iran exported $955 million worth of liquefied natural gas (LPG) and $616 million worth of urea to Turkey during the 10 months.

Unprocessed gold, sunflower oil and tractors were among the main products imported into the country from Turkey, the IRICA head added.