Sputnik News- The opening of Iran's first house of commerce in Russia is an "unprecedented event" that will enable the strengthening of trade links between the two countries, Astrakhan's Minister of International and Foreign Economic Relations Denis Afanasev told Sputnik.
Iran has opened its first house ofcommerce inRussia, inAstrakhan Oblast inthe south ofthe country. The new institution is home to14 chambers ofcommerce and industry from14 provinces ofIran, who will exhibit their products onthe first floor ofthe building.
The house ofcommercewill provide Russian entrepreneurs witha new opportunity todiscuss projects and contracts withtheir Iranian counterparts, Astrakhan's Minister ofInternational and Foreign Economic Relations Denis Afanasev told Sputnik.
"Businesspeople fromAstrakhanor elsewhere inRussia wishing tobuild trade relations withIran can come tothe house, look atthe products and choose what they need. Here they can contact the representative ofa particular company, conclude agreements ontrade and discuss the logistics ofdelivery."
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Products on display in the showroom
"This is precisely the point ofopening this house: tobring the business ofthe two countries closer, toestablish contacts forlogistics, forRussian entrepreneurs toget toknow Iranian products forthe Iranians toget toknow them," Afanasev explained.
"I believe this structure will fill a certain niche, that is, it will close a vacuum that exists inbusiness betweenRussia and Iran and create good conditions forincreasing trade turnover and cooperation," he added.
Discussions are already ongoing withIranian partners aboutthe creation ofa Russian house ofcommerce inIran which would further stimulate relations betweensmall- and medium-sized businesses inthe two countries.
"We are ina serious position toenter the Iranian market we've already got some good proposals. At last week's 'Business Caspian-2017' forum, we saw that a lot ofIranian businesses are participating inthe trading house and are attempting todevelop relations withother countries intheCaspian Searegion," Afanasev said.
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Opening of the Iranian house of commerce
Iran's consul general inAstrakhan Ali Mohammadi told Sputnik that Iran aims touse the new center tobetter understand the Russian consumer market and increase its exports.
"In 2012, an agreement was signed betweenthe governors ofGilan [Iran] and Astrakhan Oblast onthe construction ofan Iranian house ofcommerce inthe city ofAstrakhan. In 2015, the Chamber ofCommerce ofGilan Province helped tosurvey ofseveral plots ofland, eventually selecting a plot of1500 square meters inthe center ofthe city. In collaboration withthe Iranian Chamber ofCommerce, this formerly residential building was reconstructed and turned intoan office building withan area of1150 square meters."
Mohammadi said the new house ofcommerce is different toother centers inRussia such asMoscow's Food City, where Iranian producers have pavilions topresent and sell their food butthey don't have a space especially forbusiness negotiations.
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Iranian house of commerce in Russia's Astrakhan Oblast
"In Food City, the goods can get customs approval and be put upfor sale, while this building will become a venue fornegotiations and getting acquainted withthe content and trends ofthe two countries' markets. Here, Iranian producers can hold short-term exhibitions oftheir goods," he explained.The consul is hopeful that the new center will enable the further development ofcooperation betweenIranian businesses and Russian ones, particularly inAstrakhan. He has already noted a tendency towardincreased trade.
"The level ofunderstanding and cooperation is growing, butof course it takes time. During the two years that I have spent inAstrakhan, I have felt that the convergence that is really needed forincreased trade is happening and tosome extent has accelerated."
"Our data forthe first 8 months of2017 shows that the export ofgoods fromAstrakhan toIranamounted toabout $95 million, while Iran exported $17 million toAstrakhan overthe same period. Astrakhan's main item ofexport was timber ($44 million), followed bygrain ($35 million). In third place were seeds and sunflower oil," Mohammadi said.
