Economy, Domestic Economy

Facilitating Export to Russia

Facilitating Export to RussiaFacilitating Export to Russia

The ministry of Industries, mines, and trade is slated to sign a memorandum of understanding with the Eurasian Economic Union (EEU) to commence exports to Russia in the near future with lower tariffs, IRNA quoted Iran’s ambassador to Moscow, Mehdi Sanaie, as saying.

“Currently there are high tariffs on Iranian exports to Russia,” the ambassador said, adding that the MoU is aimed at decreasing the tariffs. Since Russia has no trade facilitation agreement with countries other than the CIS, the only bridge for Iran to export its products to Russia and use low tariffs is via Armenia, Kazakhstan, and the Republic of Azerbaijan, he noted.

The Eurasian Economic Union comprising Russia, Belarus, Kazakhstan, and Armenia became effective on January 1. Kyrgyzstan is also set to join the union in May. The union aims to boost the economic integration of member nations, facilitating free flow of goods, services, capital and labor in the region.

Sanaei also referred to the signing of a new consular agreement between Iran and Russia in 2016 which could facilitate visa formalities for employers, tradesmen and tourists.

Commenting on recent problems regarding transfer of money between Iran and Russia, the ambassador said with the efforts made by the Central Bank of Iran the problem has been solved.

According to some officials, considering the high volume of trade with Russia as well as some difficulties that Iran faces in the course of exporting its goods to the neighboring country, including the imposition of higher import duties on Iranian goods by the Russians, boosting barter can open a new gateway to increase trade between the two sides.

 Stuck in Bureaucracy

Stuck in bureaucracy, Iran is missing the lucrative the $41 billion Russian food market, Kaveh Zargaran, an official in Federation of Iranian Food Industries Association told ISNA on Wednesday.

The value of food imported into Russia equals the total value of non-oil goods that Iran exports per year, Zargaran said. However, despite all the negotiations with Russian officials on the process of expanding exports to that country, it is over eight months that bureaucratic procedures have impeded Iran from reaching its goals, he added.

Trade turnover between Russia and Iran is set to reach $2-2.5 billion in 2015. Iranian exports to Russia totaled $260 million last year while Russia exported $600-700 million worth of goods. Total trade turnover between the two countries amounted to $963 million.