Russia’s president, Vladimir Putin, has highlighted the importance of the free trade agreement recently signed between the Eurasian Economic Union (EAEU) and Iran, noting its potential to strengthen economic ties between the two blocs. He indicated that nearly all product categories will gain duty-free access to the Iranian market, according to reporting from RIA Novosti. This statement frames the accord as a milestone in how the EAEU seeks deeper engagement with Iran, signaling a strategic move toward broader market integration in a region that includes major energy and industrial sectors.
Putin stressed that once the agreement enters into force, a broad range of co-produced goods will be exempt from tariffs when entering Iran. He pointed to a population of about 90 million people as a substantial market, suggesting that reduced barriers could translate into increased trade flows for both regions. The reduction of non-tariff barriers was also mentioned as part of the anticipated benefits, which would streamline administrative processes and speed up the movement of goods across borders.
Earlier reports indicated that the EAEU member states concluded a full-scale free trade agreement with Iran during a ceremony held in St. Petersburg. The signing ceremony underscored a shared interest in expanding bilateral commerce, particularly in food and industrial products, with expectations of boosted supply and demand across both continents. The partners anticipate a significant uplift in trade activity, projecting turnover to grow to roughly 18-20 billion dollars within five to seven years, effectively tripling the current scale of exchanges in goods and services between the two blocs.
Observers caution against optimistic projections, noting that the real impact will depend on a range of factors including regulatory alignment, infrastructure readiness, and the ability of companies to adapt to new trade rules. Acknowledging this, Russian officials and economic experts have emphasized practical steps to address potential bottlenecks and to ensure that tariff eliminations are complemented by robust compliance frameworks and transparent standards. Such measures are expected to support sustained growth in shipments of agricultural products, machinery, and consumer goods, while also encouraging investment in production capacity within both the EAEU and Iran.
In the broader regional context, the agreement is seen as part of a wider strategy to diversify trade partners and reduce reliance on traditional markets. It reflects a concerted effort to leverage the combined size of the EAEU with Iran’s sizable consumer base and strategic geographic position. Experts suggest that the deal could act as a catalyst for related initiatives in energy, transportation, and logistics, potentially improving cross-border corridors and speeding up customs procedures, which would be beneficial for manufacturers seeking reliable access to both markets. Successful implementation would therefore support not only price stability and supply continuity but also innovation and competitiveness across multiple sectors.
Finally, analysts highlight the importance of monitoring developments as the new framework takes shape. They anticipate periodic reviews to confirm tariff schedules, verify the elimination of non-tariff barriers, and ensure that the rules governing origin and product classifications are clear and consistently applied. The overall expectation is that the trade agreement will gradually strengthen economic cooperation, expand consumer access to a wider range of goods, and contribute to a more integrated regional economy across the EAEU and Iran, with long-term benefits extending to related industries and employment opportunities. — RIA Novosti