Monday, May 16, 2022

Iran official calls for deepening trade ties with Russia in the wake of war

The head of Iran’s Trade Promotion Organization has predicted it’s highly likely the Ukraine war will drag on and further sanctions will be slapped on Russia.

Alireza Peymanpak said Tehran must use this opportunity to strengthen its trade ties with Moscow. He added that Iran and Russia signed a long-term agreement under which the Islamic Republic will export cooking oil, wheat and barley to the Russian federation.

According to the head of Iran’s Trade Promotion Organization, after the agreement with the Russian side, the customs of the strategic port of Makhachkala was reopened and this will significantly increase exports to Russia.

He said Iran will soon enter into a similar agreement with the Azerbaijan republic too.

Peymanpak noted that the bulk of export incentives go to knowledge-based firms, noting that good agreements have been made with Russia, Oman and Indonesia for the purpose of trade development of these companies.

He said Iran must shift away from selling raw material alone.

Peymanpak noted that Iran’s exports grew by $13 billion last year, saying the country is trying to control export fluctuations so that it will have a long-term presence in target markets.

The surge in Iran’s trade with foreign nations comes at a time when the Islamic republic is under the harshest unilateral sanctions by the US. Iran oil exports have also grown in recent months and the administration of President Ebrahim Raisi says revenues from crude sales are returning to the country despite restrictions on the Iranian banking system.

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