Eurasian economic union highlights growing trade ties with Iran, strategic shift to global south

(MENAFN) Andrey Slepnev, the Minister of Trade for the Eurasian Economic Union (EAEU), stressed the significance of the free trade agreement with Iran, highlighting the country's strategic location as a key partner on the EAEU's southern borders and its vital role in the International North-South Transport Corridor (INST).

In an interview with Izvestiia on Friday, Slepnev emphasized Iran's progress in import substitution, technological advancements, and its resilience in the face of sanctions.

Regarding the status of the agreement, which was finalized a year ago, Slepnev mentioned that the ratification process has been completed in four EAEU member countries. “We aim to conclude the agreement at the upcoming EAEU leaders’ summit in Saint Petersburg at the end of December 2024, so it can take effect at the beginning of the following year,” he remarked.

Slepnev elaborated that by the end of 2024, 75 percent of the EAEU's trade will be conducted with nations in the southern part of the region, marking a major shift in the bloc's trade focus. “We have shifted our trade focus from Western nations to the south,” he explained.

Historically, the European Union represented over 40 percent of the EAEU's trade, with the Global South comprising less than half. “Currently, the share of trade with European partners has decreased by about 2.5 times, while trade with the Global South continues to rise. By the end of 2024, we expect it to represent 75 percent of our total trade volume,” Slepnev added.

Earlier this month, Mohammad-Ali Dehghan Dehnavi, head of Iran’s Trade Promotion Organization (TPO), stated that Iran’s exports to Eurasian countries have increased by 2.5 times since the signing of a preferential trade agreement with the EAEU four years ago, underlining the success of the nation’s trade policy.

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