Surge in trade expected between Russia, Iran

Russia and Iran on Friday projected a sharp increase in bilateral trade with the upcoming implementation of a free trade agreement between the two allied nations, expected to take effect on May 15.

Russian Energy Minister Sergey Tsivilev, speaking at the conclusion of a Russian-Iranian intergovernmental meeting on trade cooperation, said the agreement “opens numerous avenues for cooperation… and offers significant opportunities for trade between our countries.”

The deal, part of a broader strategic treaty signed in January and ratified by Russia in early April, is expected to multiply trade volume “several times over,” according to Iranian Oil Minister Mohsen Paknejad.

Tsivilev noted that trade between the two countries reached USD 4.8 billion in 2024, but stressed that “our trade potential is far greater.”

Paknejad echoed the sentiment, saying, “The current level of trade remains far below the targets set and the economic capacities of both Russia and Iran.”

He added, “The relationship between Iran and Russia holds major importance on the international stage.”

In recent years, ties between Moscow and Tehran, both under heavy international sanctions, have rapidly deepened.

Together with China and North Korea, Russia and Iran are seeking to forge a counterweight to Western influence, forming close alliances, especially in military cooperation, and supporting each other on various international issues.

Paknejad said the Moscow meeting also covered discussions about extending the presence of Russian companies in Iranian oil and gas fields and potentially routing Russian energy supplies through Iranian territory.

Other topics on the agenda included cooperation in the field of civilian nuclear energy and the construction of additional nuclear power facilities, Paknejad said, without providing further details.

Western countries, led by the United States, have long suspected Iran of seeking to develop nuclear weapons — accusations Tehran denies, maintaining its nuclear program is strictly for peaceful purposes.

The Kremlin has repeatedly expressed its willingness to do “everything it can” to help find a diplomatic resolution to the Iranian nuclear issue, which remains under negotiation between Tehran and Washington with Omani mediation.