2025 Mar 15, 00:57
Russian President Vladimir Putin has expressed his support for Iran's swift integration into the Eurasian Economic Union (EAEU), a move that is set to expand the union's membership and economic influence, while also strengthening ties with Iran. This development holds immense significance for international trade and geopolitics, particularly in light of the existing relations between Russia and Iran, as well as the sanctions imposed by Western nations. A notable surge in Kazakhstan's exports has been observed, with a staggering 90% increase from $5.1 billion in 2015 to $9.7 billion in 2022, in trade with EAEU countries. Over the span of seven years, mutual trade between Kazakhstan and its partners has grown by 74%, reaching $28 billion by the end of 2022, a result of the removal of ten trade barriers. There is great anticipation surrounding Iran's integration, as the country is poised to sign a comprehensive Free Trade Agreement (FTA) with the EAEU, superseding the current temporary agreement put in place in 2019. This new agreement is expected to foster closer economic cooperation and create a substantial increase in trade between EAEU member states and Iran
Tariffs for 87% of goods traded between Iran and the EAEU member states will be completely eliminated, opening up potential new opportunities for businesses and consumers. This free trade agreement, signed in St. Petersburg, is highly anticipated to significantly enhance the competitiveness of goods from EAEU member states, thus boosting exports to Iran. It is expected to have a profound impact on bilateral trade, leading to a substantial increase in Iran's non-oil exports and a remarkable growth in its steel production and export. This development sets the stage for a new chapter in the economic relations between the EAEU and Iran, with vast implications for regional and global trade patterns. As Iran's integration into the EAEU becomes a reality, it will undoubtedly reshape the economic landscape and pave the way for further growth and cooperation between the member states.