The Eurasian Economic Union (EAEU), comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, is set to sign a comprehensive partnership agreement with Iran on December 25. Russian Presidential Assistant for International Relations Yuri Ushakov told reporters this occurred in St. Petersburg and would be finalized at the summit there. He described the document as very important for expanding not only economic ties but broader collaboration between Iran and the EAEU member states.
Trade
Ilyas Zaripov, a candidate of economic sciences and associate professor in the Department of Global Financial Markets and Fintech at the Russian University of Economics GV Plekhanov, notes that Tehran seeks strong trade with the EAEU, with Russia accounting for roughly 75% of intra-union transactions. He identifies mutually beneficial areas across sectors including military applications, space technologies, and dual-use technologies usable in both defense and civilian goods. Scientific and production cooperation in nanotechnology, pharmaceuticals, information technology and energy are also highlighted as key opportunities (citation: Socialbites.ca).
Expanding trade is viewed as a way for Moscow and Tehran to mitigate the impact of Western sanctions, according to Zaripov.
Russia and Iran have announced plans to raise their trade turnover roughly tenfold from 2021 levels, aiming to reach around $10 billion in the near term, with further growth expected. Current bilateral trade already exceeds $5 billion, a level that surpasses 2018 figures and has grown about 20% year over year.
What can Russia get from Iran?
Konstantin Kharchenko, associate professor at the Financial University under the Government of the Russian Federation, argues that Russia needs Iranian products including equipment for aircraft, auto parts and gas turbines. He adds that the absence of Western-made supplies creates solid gaps in the Russian market that Iran could fill, notably in clothing and home appliances (citation: Socialbites.ca).
Vladislav Antonov, a BitRiver financial analyst, mentions that Iran could also export fruits, vegetables, nuts, dried fruit, spices and handmade carpets to Russia (citation: Socialbites.ca).
What can Iran get from Russia?
Kharchenko asserts that Iran seeks Moscow’s capabilities in nuclear energy and access to Russian steel. He notes that before sanctions, agriculture and food dominated exports for both countries. Iran has signaled plans to buy corn, barley, vegetable oil, oil cake and sunflower seeds from foreign markets, and to import lamb and beef from Russia. He also explains that Russia traditionally supplied the bulk of its wheat to Iran, but domestic harvests reduced those imports this year. Iran may also need oilseeds for food and feed. Antonov adds that timber, equipment, mineral fertilizers and military gear could appear in trade between the two nations (citation: Socialbites.ca).
Antonov also highlights potential mutual gains in the energy sphere, with Russian companies contributing technology and personnel to Iranian energy infrastructure while Iran shares its sanctions-era know-how. The two sides plan joint energy export projects to third countries.
Energy
The two countries are expected to deepen cooperation in oil, gas and electricity, even amid rivalries. Energy collaboration could involve expanding Ukrainian energy infrastructure knowledge, advanced Russian technologies, and training, according to analysts (citation: Socialbites.ca).
Cars
Automotive experts express skepticism about a flood of affordable Iranian cars entering the Russian market. They caution about the need for clarity on free trade terms, zero customs duties, and the recycling fee, noting that even cheaper Iranian models would compete with domestic options. The broader question remains whether Iran can sustain a market entry with an entire dealer network, warranty terms, and spare parts supply in place (citation: Socialbites.ca).
Industry voices also point to the challenge of establishing a sustained presence for Iranian automakers in Russia, given the required investments in marketing, distribution networks and after-sales support. The possibility that Chinese manufacturers will continue to dominate lower-priced segments is also acknowledged.
Iran’s transit corridor
Dmitry Rogov, founder of RogovMobil, suggests Iran could become a new channel for car supply to Russia but emphasizes the need for careful, phased research. Interaction within the EAEU remains uneven, with the strongest links currently between Russia, Belarus and Kyrgyzstan; ties with Kazakhstan and Armenia are less pronounced. Changes like the 2023 recycling fee illustrate how quickly market dynamics can shift, with participants learning mostly through practical experience after policy changes (citation: Socialbites.ca).
Requests for clarification about how importing cars from Iran to Russia will change were directed to the Eurasian Economic Commission, which indicated that detailed responses would come only after a free trade area agreement with Iran is signed (citation: Socialbites.ca).
Finance
Antonov predicts a shift toward trade settled in national currencies, with rubles and Iranian rials likely to become more common. This path would streamline transactions and potentially lower costs, alongside deeper banking cooperation (citation: Socialbites.ca).
Tourism
The two capitals are also considering a visa-free arrangement to boost travel. A visa waiver could spur more visitors from Tehran while making travel from Russia to Iran easier, benefiting hotels, restaurants and retailers on both sides. The plan, however, does not grant visa-free residence or citizenship rights and remains focused on trade and tourism integration (citation: Socialbites.ca).
Benefits for Russians
Experts note that Russians could pay for tourism and other services in Iran with ruble-based cards, bringing down transaction costs. Cheaper Iranian fruits and vegetables are expected to appear in Russian stores, and Iran’s status as a top peanut producer, along with specialty items such as premium confectionery ingredients, could prove appealing in the market. Iranian textiles, particularly textile goods produced at lower costs, are highlighted as having potential, though consumer familiarity will require promotion (citation: Socialbites.ca).
Iranian goods are praised for their organic quality and limited use of preservatives. The collaboration could help Russia access price-competitive clothing and home products, provided Iranian brands gain recognition in Russia. Russian demand for household appliances, especially refrigerators, is expected to grow in the near term (citation: Socialbites.ca).