Iran, Russia Set Two-Year Target to Expand Trade to $10b

TEHRAN (Iran News) In an interview with Otagh Iran Online, Hadi Tizhoosh Taban, President of the Iran–Russia Joint Chamber of Commerce, said total trade between the two countries is currently below $5 billion, a figure he described as unsatisfactory given the strategic relationship between Tehran and Moscow. He emphasized that with proper planning and institutional reforms, trade volume could be doubled within one to two years.

Tizhoosh Taban noted that economic relations between Iran and Russia have expanded in recent years, particularly after Western sanctions against both countries intensified. Facing similar restrictions, Tehran and Moscow have increasingly turned toward alternative economic arrangements and closer cooperation to reduce their reliance on Western-dominated financial systems.

He pointed out that Iran has taken several steps to counter what it considers unlawful and unfair U.S. sanctions, including joining international groupings such as BRICS, the Shanghai Cooperation Organization, and the Eurasian Economic Union. Russia, he added, is also a member of all three organizations and, like Iran, is under extensive sanctions. This shared position, he argued, creates favorable conditions for expanding economic cooperation and strengthening resilience against external pressures.

Despite these opportunities, Tizhoosh Taban stressed that current trade levels remain far below their potential. One of the most critical issues, he said, is the lack of transparency in bilateral economic relations. While increasing trade volume is a priority, he warned that doing so without transparent mechanisms and clear regulatory frameworks could lead to inefficiencies, weakened trust, and reduced investor confidence.

“Expanding trade without transparent infrastructure creates problems in commercial processes, mutual trust, and investment attraction,” he said. “Trade growth must go hand in hand with transparency in decision-making, data, and oversight.”

According to Tizhoosh Taban, Iran–Russia trade spans a wide range of sectors, including energy infrastructure, transportation, essential commodities, banking cooperation, and industrial investment. As trade expands across these areas, he said, the need for accurate data, effective monitoring systems, and clear reporting becomes even more critical to prevent rent-seeking behavior and avoid economic inefficiencies.

Another major challenge, he added, is the lack of consistent and publicly available official statistics. Discrepancies between reports, delays in publishing data, and insufficient detail in trade and investment figures make it difficult for businesses to plan and for policymakers to assess progress accurately.

Banking issues remain a key obstacle for economic actors in both countries. While the use of national currencies—the Iranian rial and the Russian ruble—has reduced dependence on the U.S. dollar and eased some sanctions-related constraints, domestic problems persist. Tizhoosh Taban highlighted a significant loss—exceeding 25 percent—in value during the conversion of rubles to rials through Iran’s SANA and NIMA currency platforms. He expressed hope that Iran’s central bank would take corrective action to resolve this issue, which he described as a serious burden on traders.

Differences in accounting and auditing standards also complicate bilateral trade. Tizhoosh Taban explained that the rules governing contract auditing in Iran and Russia are not fully aligned, leading to confusion, delays, and increased costs. Harmonizing these standards, he said, would remove a major structural barrier and facilitate smoother cooperation.

To address several of these challenges, Tizhoosh Taban proposed the creation of a centralized investment platform. He suggested launching a bilingual website that would provide transparent data, regulatory guidance, and practical information accessible to all economic stakeholders in both countries. Such a platform, he said, could significantly reduce uncertainty, assist traders, and accelerate the exchange of goods and services.

He also addressed the impact of sanctions on financial messaging systems, particularly restrictions on access to the SWIFT network, which he described as one of the most effective tools used against sanctioned countries. Developing an alternative financial messaging system, he said, could greatly facilitate bilateral transactions. In addition, he proposed the establishment of joint development banks in Iran and Russia to support long-term investment and trade financing.

Tizhoosh Taban warned that insufficient oversight in trade relations could increase the risk of corruption and economic deviation. “If we want a sustainable, long-term trade framework, trust-building must come first,” he said, stressing that economic cooperation should grow through official, legal, and transparent channels.

According to him, successful cooperation with Russia requires a coordinated management system and adherence to key prerequisites, including attracting investment, strengthening mutual trust, creating shared standards, publishing accurate statistics, and ensuring effective oversight.

He also highlighted the complementary nature of the two economies. While Iran and Russia may compete in certain areas such as energy and petrochemicals, he said there is significant potential for cooperation in other sectors, including agriculture, livestock feed, food products, and related industries.

Reiterating the trade target, Tizhoosh Taban said increasing bilateral trade from under $5 billion to over $10 billion within one to two years is realistic and achievable if structural and institutional obstacles are addressed.

In conclusion, he emphasized that improving infrastructure and building trust should be the top priorities in Iran–Russia economic relations. Given the close ties between the two governments, he said, there is a strong opportunity to empower the private sectors of both countries and enable them to fully benefit from each other’s economic capacities.