BAKU, Azerbaijan, August 22
By Elnur Baghishov – Trend:
Iran has great potential for exporting products worth $12 billion a year to Russia, Deputy Minister of Industry, Mine and Trade of Iran, Head of the Trade Promotion Organization of Iran (TPOI) Hamid Zadboum said, Trend reports citing the organization’s website.
Zadboum stressed that however, Iran's current exports to Russia amount to about $500 million a year.
The deputy minister added that Iran can significantly increase exports to Russia, taking into account good relations between Iran and Russia, the free trade agreement between the two countries, as well as a contract signed with the Eurasian Economic Union (EAEU).
"According to 2018 statistics, the Eurasian Economic Union's trade with the world’s countries amounted to about $866 billion. The major part of this volume falls to Russia's trade with the world's countries in the oil and gas sector," he said.
The deputy minister further noted that despite Iran's huge potential, the country's share in this trade stands at only 0.3 percent.
The official emphasized that the value of Iran's exports to the EAEU has increased to $762 million since the signing of the interim contract on October 27, 2019, until the end of the fourth month of current Iranian year on July 21, 2020. During that period, Iran imported $1.8 billion worth of products from the union.
Zadboum added that the Iran's trade turnover with the Eurasian Economic Union is about $2.6 billion a year.
According to forecasts, the trade turnover can increase to about $35 billion if the existing trade potential between the both sides is fully used, he noted.
A temporary trade memorandum was signed between Iran and the EAEU on October 27, 2019. In accordance with the document, 862 kinds of products are to be imported and exported upon preferential tariffs between the two sides.
Under the agreement, Iran will export 502 types of products and import 360 kinds of products.
Iran will mainly export pistachios, kiwi, oil products, raisins, cucumbers, cabbages, dates, medicines, cement, copper and methanol to the EAEU. In turn, the country will primarily import barley, animal feed, vegetable oil and cathodes from the union's member states.