Details of the 20-Year Economic Treaty Between Iran and Russia

TEHRAN (Iran News) The comprehensive 20-year strategic agreement, signed in light of regional and international conditions, is regarded as a significant milestone in the economic relations between Iran and Russia, especially considering both countries’ membership in the Shanghai Cooperation Organization (SCO) and BRICS.

Key Provisions of the Treaty:

1. Strengthening Provincial Economic Ties: Article 16 emphasizes the importance of fostering inter-provincial cooperation between Iran and Russia. It stipulates the creation of favorable conditions for direct relations between the provinces of both countries, promoting business trips, meetings, exhibitions, and other inter-provincial events to showcase investment opportunities and economic capacities.
2. Facilitation of Joint Investments: Article 18 outlines the development of joint business ventures, infrastructure funding, and collaborative mechanisms in trade, banking, and business processes. It also encourages joint investments in third countries through multilateral discussions and expert frameworks.
3. Bilateral Payments in National Currencies: Article 20 advocates for enhancing bilateral trade by encouraging the use of national currencies in transactions. The treaty outlines the expansion of cooperation between financial institutions, strengthening anti-money laundering frameworks, and boosting investment and trade in free economic zones between the two nations.
4. Cooperation in Transportation: Article 21 highlights the potential for closer collaboration in various forms of transport, including road, rail, air, sea, and combined transportation methods. Both countries will work together on the development of transport corridors, especially the North-South International Transport Corridor, to promote smoother transit and trade.
5. Joint Energy Collaboration: Article 22 addresses the energy sector, focusing on oil and gas cooperation. Both parties will engage in scientific, technical, and commercial partnerships to increase energy security and promote projects related to oil and gas field development, energy supply, and infrastructure. They will also coordinate efforts within international energy forums like OPEC+ and the Gas Exporting Countries Forum (GECF).
6. Nuclear Energy Development: Article 23 outlines cooperation on peaceful nuclear energy projects, including the construction of nuclear energy facilities.
7. Agricultural and Fisheries Collaboration: Article 24 promotes joint efforts in agriculture, fisheries, veterinary care, plant protection, and quarantine practices. The goal is to boost agricultural trade and ensure the safe and healthy distribution of food products.
8. Establishment of a Simplified Customs Corridor: Article 25 focuses on the creation of a customs facilitation corridor, enhancing cross-border trade through mutual recognition of business entities, sharing customs data, and facilitating secure supply chains.
9. Tourism Cooperation: Article 35 encourages the development of tourism relations, supporting cultural heritage promotion, tourism activities, and arts & crafts to increase awareness and attract tourists to both countries.
10. Environmental and Water Resource Management: Articles 39 and 40 emphasize cooperation in environmental protection, the use of eco-friendly technologies, and the efficient management of natural resources, including water resources.

The treaty sets the stage for deepened economic collaboration between the two countries, with a focus on practical steps to enhance trade, investment, energy security, and regional connectivity.