Iran-Russia Trade Reshaping: $6 Billion Trade Target Not Out of Reach

TEHRAN (Iran News) According to IRNA, Gdari noted that Iran’s exports to Russia totaled about $500 million in the last three years, but this figure has more than doubled in this period — a growth unprecedented in any other trade partner. This development indicates a fundamental shift in Iran’s trade relations with Russia.

Historically, agricultural products formed the bulk of Iran’s exports to Russia. However, Gdari pointed out that the export basket has diversified. Today, alongside agricultural goods, industrial products are also being exported. For example, car parts exports increased from $13 million to $67 million in 2023, with a growth rate of over 100% last year. On the import side, Russia has become a key supplier of livestock-related products, timber, and wood.

Gdari emphasized that both countries’ traders are increasingly active at international trade fairs, which positively impacts trade volume. Moreover, he highlighted that after the Iran-Eurasian Economic Union Free Trade Agreement, 87% of tariff codes for export goods became duty-free, significantly boosting trade. Previously, some products lacked competitive advantage, but the agreement’s implementation is expected to substantially increase bilateral trade, with a realistic target of reaching $6 billion — provided that infrastructure issues like banking and logistics are addressed.”Iran-Russia”

He pointed out that positive agreements in logistics and banking sectors foster optimism about rapid trade growth. The range of exportable goods has expanded, and the mutual recognition of standards is expected to further facilitate trade, especially in pharmaceuticals and medical equipment.

Gdari also revealed that Iran and Russia now have about 5,500 tariff-free product codes. Key sectors benefiting from this include clothing, construction materials, and knowledge-based products, which are likely to enter the commercial cycle soon. He stressed that aligning Russia’s standards with Iran’s could accelerate trade growth further and ease exports of medicines and medical devices.

In summary, the ongoing structural changes, combined with mutual standard recognition and improved infrastructure, position Iran and Russia on a pathway toward reaching a $6 billion trade volume — a goal that now seems attainable with concerted efforts.