News ID: 189357
Published: 0432 GMT March 14, 2017

Russia, Iran to discuss $10b agreements during Rouhani’s visit

Russia, Iran to discuss $10b agreements during Rouhani’s visit

Russia and Iran will consider realization of joint projects in the industry sector for a total of $10 billion during a forthcoming visit by President Hassan Rouhani to Moscow, Russian Energy Minister Alexander Novak said.

He made the remarks following a meeting with Iranian Communications and Information Technology Minister Mahmoud Vaezi on Monday. 

"We discussed the new documents which are expected to be prepared for signing during the visit of Iranian President Hassan Rouhani to Moscow, and we agreed that approximately more than 10 such contracts will be prepared," RIA Novosti quoted Novak as saying.

Great prospects exist in the field of industry, since a five-year 'roadmap' for cooperation was signed, and now Russian companies and industrial enterprises cooperate with Iranian companies, according to the energy minister.

"Wagons are already delivered, we are talking about the supply of Sukhoi Superjet aircraft and other areas of cooperation," Novak stated.

He further stressed that it is important to create financial and economic conditions in the banking sector for implementing and developing cooperation between the two countries.

Russian trade representative in Iran Andrei Lugansky also said that Moscow may conclude agreements on deliveries of engineering industry goods to Iran and imports of food products from Iran during Rouhani’s visit to Russia in March, Sputnik reported.

“This concerns foreign trade activities – machine building products to Iran and an increase in food products to Russia,” Lugansky said.

Lugansky added that the creation of the free trade zone between the Eurasian Economic Union (EAEU) and Iran will also be discussed during the president’s visit.

“The matter is currently complicated by the Iranian side that does not want to agree on the list [of goods], as our product range is wider, while theirs is narrower,” Lugansky stressed.

According to Lugansky, Iran must recognize the mutual interest of both countries within the framework of the free trade agreement. He referred to Iran’s intention to begin exports of fruits and vegetables to Russia, which is a point of concern for Russia, as the duty-free importation of such products could create competition with local goods. Similarly, Iran fears that the import of a number of machine building products could provoke competition with more expensive local products.

Talks on the creation of the free trade zone between EAEU and Iran were held between Moscow and Tehran in February. After the negotiations, members of the EAEU prime ministerial council signed a directive ordering preparations for a temporary agreement on the establishment of the EAEU-Iran free trade zone.

The EAEU is a regional political and economic bloc that aims to optimize the flow of goods and services between its members. Its current member states are Russia, Kyrgyzstan, Armenia, Belarus, and Kazakhstan.

Russian Foreign Minister Sergei Lavrov said in October 2016 that over the last two and a half years the trade between Russia and Iran increased more than twice.




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