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Economy
2022-July-6  15:57

Official: Iran, Russia Trade Exchanges Increase to $4.5bln

TEHRAN (FNA)- A senior Iranian official said that at present the trade relations between his country and Russia stand at $4.5bln, and stressed Moscow's willingness to invest in Iran's ports.

The value of trade exchanges between Tehran and Moscow is nearly $4.5bln, Iranian Deputy Roads and Urban Development Minister Shahriar Afandizadeh said.

He added that Iran and Russia have reached an agreement on the details of carrying 10 million tons of goods from Russia via the North-South corridor of the Islamic Republic.

Afandizadeh said that the memorandum of understanding between the two sides puts emphasis on transit in addition to imports and exports.

He said trade exchanges between Russia and the EU were over 250 billion euros but they plummeted due to the Ukraine war, adding that Iran can use this opportunity as it is now a good alternative transit route for Russia.

According to Afandizadeh, Iran and Russia are inter-connected either via the Caspian Sea or through their railway networks.

He noted that if Iran can expand its railway networks including its locomotives and wagons, it will be able to reach the foregoing amount of trade with the Russian side.

Afandizadeh said what matters most for Russia is its ability to invest in Iran’s port cities of Chabahar and Bandar Abbas as well as Iran’s Northern ports as regional hubs and “we hope that both Russia and Iran will use this opportunity to reach the level of 10-million-ton transit of goods”.

Iranian Deputy Foreign Minister Mehdi Safari announced last Saturday plans to boost the country's exports to Russia, specially construction materials.

Iran is planning to export three-billion-dollar construction materials to Russia.

Northeastern Iranian province of North Khorassan can make use of this opportunity for export, he stated in a meeting with the provincial governor-general.

There are good capacities in the province for making construction materials, like cement, which should be used for fostering exports, Safari said.

Iran and Russia had a trade of more than $2.5 billion in the past calendar year (ended March 20), according to the Head of Islamic Republic of Iran’s Customs Administration (IRICA) Mehdi Mir Ashrafi.

Mir Ashrafi said that Russia was responsible for a major part of trade between Iran and members of the Eurasian Economic Union (EAEU) in last year, with nearly $2.626 billion in value.

He added that imports from Russia reached over $2.116 billion over the period, an increase of 19% compared to the previous year.

“Iran’s exports to Russia also increased by 10% year on year in late March to nearly $510 million,” IRICA chief noted.

He said trade with Russia had accounted for 77% of Iran’s total trade with the EAEU.