29 Mar 2024
Saturday 25 February 2017 - 09:31
Story Code : 252451

Russia, Iran ready for free trade deal talks as bilateral ties gain momentum

Sputnik- On Tuesday, Russian Deputy Prime Minister Igor Shuvalov visited Iran to discuss a trade agreement between Moscow and Tehran.


During talks withIranian Communication Minister Mahmoud Vaezi, Shuvalov said that Russian President Vladimir Putin ordered toorganize negotiations withIran aimed atreaching a preferential trade agreement.


"I just received an order fromRussian President Vladimir Putin tohold talks inIran and discuss withour Iranian colleagues how we could intensify our bilateral trade and reach a preferential trade agreement," Shuvalov said.

At the same time, he noted, the positive results oftrade negotiations will contribute toarranging the final details ofIranian President Hassan Rouhanis visit toMoscow inMarch.

A free trade area withinthe Eurasian Economic Union (EAEU) is expected tobe a the first major step instrengthening trade relations and will also put Moscow-Tehran trade cooperation toa new level, according toMahmoud Shoori, head ofEurasia Program atCenter forStrategic Research (CSR).
"Trade betweenRussia and Iran has been inintense discussions forthe recent three years. Both sides are now doing their best toexpand and develop bilateral trade ties. A lot has been done onthe issue, including important agreements," Shoori told Sputnik Persian.


According tothe analyst, the most important and atthe same time problematic matter is the matter ofIrans integration intothe EAEU, i.e. the "matter ofmultilateral cooperation."

Functioning since2015, the EAEU is a Russia-initiated regional political and economic bloc that aims tostreamline the flow ofgoods and services betweenits member states: Russia, Armenia, Belarus Kazakhstan and Kyrgyzstan.
"This issue has long been discussed. Several rounds oftalks have already been held betweenEAEU members and Tehran. Now, we see significant progress onthe issue, including considering a major free trade area deal withIran. In fact, this would be the first serious step tostrengthen Russian-Iranian trade ties. Unfortunately, previously there has been the lack ofpolitical will todo that," Shoori said.


According tothe Eurasian Economic Commission (EEC), the signing ofa full-fledged free trade area agreement betweenthe EAEU and Iran will contribute toGDP growth inall EAEU member countries.

"According tothe results ofthe EEC econometric analysis, conducted withinthe framework ofthe joint research withIran onthe expediency offree trade area establishment, a sufficient potential ofGDP growth forall EAEU member states was deduced (plus $27 million forArmenia, plus $78,6 million forBelarus, plus $508,6 million forKazakhstan, plus $12 million forKyrgyzstan, plus $1,3 billion forRussia)," the commission said ina statement inlate-December.
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