Iran Chamber of Commerce, Industries, Mines and Agriculture

Iran-Russia trade grows 25% as reforms could unlock further potential

Iran-Russia trade has grown by around 20% to 25% over the past year, highlighting significant potential for further expansion if banking, transport and other trade mechanisms are improved, the head of the Iran-Russia Joint Chamber of Commerce said.

Hadi Tizhoosh Taban said the increase had come despite existing logistical and infrastructure constraints, adding that stronger financial mechanisms and improved transport links could help the two countries make fuller use of their trade capacities. One of the main reasons Iran had not yet fully tapped the potential of the Russian market was years of insufficient attention to the country’s northern neighbors, Tizhoosh Taban told the news portal of Iran Chamber of Commerce. Commercial and infrastructure policies had traditionally focused more heavily on southern routes, limiting the development of infrastructure needed to expand trade with Russia, he said. Recent developments have increased attention to the northern regions and created greater opportunities for trade with Russia and other northern countries, he said. While northern routes cannot replace southern markets such as China, Iran can meet part of its needs through northern countries and strengthen its presence in those markets through increased exports, Tizhoosh Taban said. He said bilateral financial transactions were continuing, but the conversion of Russian roubles into Iranian rials could result in a 20% to 25% loss in value, creating additional costs for traders. Updating the rial-rouble conversion mechanism and conducting transactions at current rates could significantly ease the problem and facilitate trade between the two countries, provided the government and the Central Bank of Iran improve the existing arrangements, he said. Tizhoosh Taban also pointed to the Rasht-Astara railway as an important project for strengthening Iran’s links with northern markets. About 160 km of the route still requires rail construction and bridge work, and its completion could improve rail connectivity and create more favorable conditions for trade expansion, he said. Iran’s main exports to Russia include food and agricultural products, while Russia supplies Iran with commodities including corn, wheat and animal feed. Tizhoosh Taban said reforming the banking mechanisms governing bilateral trade should be a priority to further activate the considerable trade potential between Iran and Russia.
Iran Chamber of Commerce, Industries, Mines and Agriculture

Iran Chamber of Commerce, Industries, Mines and Agriculture

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