Iran and the Eurasian Economic Union member states traded more than 1.4 million tons of goods worth $697 million during the first quarter of the current Iranian year (March 21-June 21), data released by the Islamic Republic of Iran Customs Administration show.
Iran’s exports to the bloc stood at 681,000 tons worth $233 million during the period, registering a 4% rise in tonnage but 11% decline in value compared with the similar period of last year.
Russia was Iran’s biggest export destination among EEU states with 303,000 tons worth $115 million, registering 14% and 23% rises in weight and value respectively year over year, IRIBNews reported.
Following were Armenia with 197,000 tons worth $73 million (down 6% in tonnage but up 18% in value), Kazakhstan with 163,000 tons worth $34 million (up 25% in tonnage but down 13% in value), Kyrgyzstan with 10,000 tons worth $7 million (down 22% and 62% in tonnage and value respectively), and Belarus with 9,000 tons worth $4 million (up 282% in tonnage but down 24% in value).
Iran’s imports from EEU countries stood at 748,000 tons worth $464 million during the three months under review, indicating 32% and 34% rises in weight and value respectively compared with the corresponding period of last year.
Russia also topped the list of exporters with 586,000 tons worth $394 million, registering 14% and 23% YOY rises in tonnage and value respectively.
Following were Kazakhstan with 160,000 tons worth $66 million (up 212% and 277% in tonnage and value respectively), Armenia with 2,000 tons worth $1 million (up 41% in tonnage but down 38% in value), Kyrgyzstan and Belarus with 1,000 tons worth $1 million each (45% decline in tonnage and a 3% rise in value was registered for the former as 13% and 62% respective decline in tonnage and value was registered for the latter).
The IRICA data show Iran registered $231 million in trade deficit with EEU in Q1.
The IRICA data show Iran registered $231 million in trade deficit with EEU in Q1
Iran’s trade with EEU member states stood at 13.13 million tons worth $5.64 billion in fiscal 2021-22 (ended March 20), registering 51% and 66% year-on-year growth in weight and value respectively, according to Rouhollah Latifi, spokesman of the Islamic Republic of Iran Customs Administration. Exports to the five member states hit 2.77 million tons worth $1.17 billion, up 3.5% and 12% YOY in terms of weight and value respectively. Imports stood at 10.37 million tons worth $4.47 billion, registering 73% and 90% YOY growth in weight and value respectively.
Russian President Vladimir Putin recently signed a law on extension of Iran-EEU temporary trade treaty, which came into force in 2019. The treaty is now valid until October 27, 2022 as the two sides are in talks to forge a full-fledged free trade agreement.
However, negotiations for the conclusion of a new document may not be completed by this date, according to the State Duma of the Russian Federation.
Russian authorities believe that the implementation of the protocol will contribute to "further development of cooperation with the Islamic Republic of Iran in the trade and economic sphere.”
According to the interim agreement, import customs duties in trade between the EEU member states and Iran are reduced or zeroed across a limited range of commodities.
Russia as the biggest trade partner of Iran in the EEU region had the Islamic Republic as its main destination of grains in the agricultural year from July 1, 2021 to June 30, 2022 as Iran imported 3.7 million tons during the period.
"For the first three months of the new season 2021-2022, exports to Iran from Russia amounted to 3.697 million tons of grain, including 3.091 million tons of wheat, 392,600 tons of barley, 215,300 tons of corn. Thus, Iran reached first place not only among the importers of Russian wheat and corn but also in the overall standings for all grain types," reads a statement by analytical company Prozerno.
Notably, Iran’s Economy Minister Ehsan Khandouzi announced on July 26 that the US dollar has officially been ditched in bilateral trade relations with the Russian Federation.
At a press briefing in Tehran, the minister said the US currency has been replaced with the Russian ruble in Iran-Russia business, adding that similar plans are in the pipeline for trade with such partners as Turkey, China and India.
The new arrangement means the two countries can now settle trading debts in each other’s currencies, according to Forbes. The first trade took place on July 19, with a RUB3 million ($48,000) exchange. That also happened to be the day that Russia’s President Vladimir Putin arrived in Iran for talks with President Ebrahim Raisi and Leader of the Islamic Revolution Ali Khamenei.
Iran says the new system could reduce the demand for dollars by $3 billion a year.
During Putin’s visit, a $40 billion deal was reached between Russian energy companies, on top of them the giant Gazprom, and Iran's state-owned National Oil Company. Under the agreement, the Russian firm will invest in developing six gas and oil fields in Iran's energy-rich south.
