Economy, Domestic Economy

Commodity Exchange Through Regional Treaties

Commodity Exchange Through Regional Treaties
Commodity Exchange Through Regional Treaties

Western sanctions against Iran and Russia over money transfers have made it necessary for the two countries to formulate strategies to exchange commodities through regional treaties such as those sponsored by Shanghai Cooperation Treaty Organization, Association of Southeast Asian Nations (ASEAN), and Economic Cooperation Organization (ECO), deputy minister for industry, mines, and trade told ILNA.

Mojtaba Khosrotaj said such strategies are necessary to enhance international relations, promote exports and attract foreign investors.

Russia banned imports of a wide range of US and European foods in response to Western sanctions on Moscow over the crisis in Ukraine. Now Russia says it will count on Iran as a major supplier of vegetables, foods, and fruit. Since a crisis in Ukraine plunged Russia-West relations to their lowest level since the Cold War era, Russian trade delegations have been visiting Iran to explore the avenues for the import of foodstuff, oil as well as petrochemical products. Besides Iran, North and South American countries like Mexico, Argentina and Brazil are also hoping to fill the gap in Russia’s food imports.

The deputy further said a lot is needed to be done in order to attract foreign investors especially from member countries of the aforementioned regional organizations.

Iran has been actively marketing its products during this year’s AgroTech Exhibition for Agricultural Machinery in Moscow. During the four-day exhibition—which runs until October 12—Mahmoud Hojati, minister of agriculture stated that Iran was surveying the possibility of increasing export of fruit and other agricultural products to Russia.