Iran, Russia Target $10b Trade as Business Leaders Call for Easing Customs Barriers

TEHRAN (Iran News) The remarks were made during a meeting at the Iran Chamber of Commerce, Industries, Mines and Agriculture between its vice president, Qadir Qiafeh, and Leonid Lozhzhko, head of the Russia–Iran Business Council.

Opening the session, Qiafeh highlighted the significant trade potential between Iran and Russia, noting that despite both countries’ large markets, trade volumes have not reached levels commensurate with their capacities since the collapse of the Soviet Union.

He said bilateral trade has improved in recent years, particularly following the implementation of the free trade agreement between Iran and the Eurasian Economic Union. According to him, trade exchanges under the agreement reached approximately $4 billion in the first nine months of the current Iranian year (ending March 2026), with expectations for further growth by year-end.

Despite this progress, Qiafeh said a considerable gap remains between current trade volumes and the estimated potential of $10 billion to $30 billion. Achieving the lower $10 billion target over the next three years, he stressed, requires a stronger focus on removing practical and administrative barriers.

Qiafeh identified the application of preferential tariffs, limited familiarity among traders with tariff schedules, and delays in information exchange as key challenges in implementing the Eurasia agreement. Customs procedures, including slow responses from relevant agencies, have particularly affected perishable goods, he added.

Logistical and infrastructure limitations were also cited as major obstacles. Qiafeh emphasized that restricted regular shipping services and underutilization of the International North–South Transport Corridor have doubled transport time and costs. Completing and fully operationalizing the corridor, he said, would significantly enhance transit capacity and reduce delivery times for goods moving between the two countries.

Financial constraints also remain a shared problem. Both Iran and Russia face limited access to international financial systems, and mechanisms for settlements in national currencies are not fully established. Currency volatility in both countries has further increased operational costs for traders.

Qiafeh noted that discussions on linking Iran’s Shetab banking network with Russia’s Mir system have been ongoing for over six years. Although pilot programs have been conducted, full implementation has yet to be achieved, limiting large-scale trade transactions.

He also criticized the slow flow of information between the two sides and pointed to structural challenges stemming from state-dominated economic systems in both countries.

Qiafeh stressed the key role of chambers of commerce in facilitating trade and information exchange, arguing that closer cooperation between Iranian and Russian business institutions could help accelerate progress.

While acknowledging that numerous memoranda of understanding have been signed, he said only two major achievements have emerged so far: eased business visa procedures and the establishment of a “green corridor” to streamline trade procedures. Both initiatives were driven largely by the private sector, he noted.

He called for expanded cooperation in joint investment and technology transfer, particularly in oil, gas, petrochemicals, mining, and logistics.

Roushan-Ali Yekta, vice president of the Iran–Russia Joint Chamber, highlighted disputes over customs valuation of Iranian goods in Russia as a major hurdle. He proposed utilizing guarantee funds to support Iranian traders and facilitate smoother investment and trade flows.

Leonid Lozhzhko, head of the Russia–Iran Business Council, acknowledged ongoing settlement and trust issues, despite 89 percent of bilateral trade reportedly being conducted in national currencies. A significant share of financial transactions still passes through third countries, including Turkey and Azerbaijan, he said.

He estimated that $5.5 billion in trade could be routed through Turkey over the next four years, while $180 million in agricultural trade currently transits through Azerbaijan and Turkey. Both sides, he stressed, should work to reduce dependence on intermediary countries.

Lozhzhko said the opening of a branch of Russia’s MTS Bank in Iran could significantly lower transaction costs. He also noted that VTB Bank has allocated $2 billion to provide financial services to Iranian traders.

On transport cooperation, he reported that 28 vessels have been added to Caspian Sea shipping routes between the two countries since last year, with 30 more ships planned by 2035. Rail transport capacity is also being expanded, with new freight arrangements through western and eastern corridors to accelerate deliveries to Moscow.

However, customs procedures remain problematic, particularly for food exports. Goods transiting through Azerbaijan face multiple inspections, while errors in valuation documentation can cause costly delays and reduce product quality. Lozhzhko said training workshops are being planned to help Iranian traders better navigate customs requirements.

Both sides concluded that resolving customs bottlenecks, strengthening financial connectivity, and improving logistics infrastructure are essential steps toward achieving the $10 billion trade target.