The sustainable growth of trade between Iran and Russia depends on resolving the practical challenges faced by private businesses, moving beyond high-level political agreements to focus on logistics, market access, and secure financial transactions, a senior Iranian trade official says.
Seyyed Rouhollah Latifi, spokesperson for the Trade Development Commission of the House of Industry, Mine and Trade, stated that while political cooperation and bilateral treaties lay a crucial foundation, they only translate into sustainable trade if transport bottlenecks, standard barriers, and payment hurdles are actively dismantled.
Addressing economic activists and students at Amirkabir University on Monday, Latifi highlighted that Iran’s current share of the Russian market—which boasts a total economy of $720 billion and an annual import volume of $280 billion—remains below one percent.
He stressed that this figure is disproportionate to the deep political and security ties between Tehran and Moscow, urging a pragmatic, problem-solving approach to capture the accessible and competitive segments of the Eurasian market.
EAEU Free Trade Agreement a gateway
Latifi pointed to the Free Trade Agreement (FTA) between Iran and the Eurasian Economic Union (EAEU) as a major milestone, noting that the elimination of tariffs on 87 percent of goods significantly boosts the competitiveness of Iranian products.
However, he cautioned that tariff reductions do not bypass sanitary, phytosanitary, and customs regulations.
"Exporters must thoroughly understand the tariff status of their goods, rules of origin, import licenses, and distribution costs before signing contracts," he advised, emphasizing that legal and political opportunities only yield economic benefits when the executive links of the trade chain are fully operational.
High-potential sectors for export to Russia include agricultural and food products, aquatic goods, nuts, dates, greenhouse produce, building materials, polymers, pharmaceuticals, and digital services.
Logistics and secure payments
A critical component of expanding Tehran-Moscow trade is the operationalization of the International North-South Transport Corridor (INSTC). Latifi stressed that the economic value of maritime, rail, and road routes is only realized when businesses can reliably predict delivery times and costs.
"For an exporter, having a route on a map is not enough; the route must be operational in terms of price, time, and reliability," he said, calling for improved cargo consolidation, cold chain logistics, warehousing, and transit insurance.
Addressing the financial mechanisms required to bypass US-dominated banking systems like SWIFT, Latifi noted that while trading in national currencies and barter arrangements have opened new avenues, they do not automatically resolve all payment issues.
Challenges such as exchange rate fluctuations, liquidity, and settlement times must be managed through precise contracting, export credit insurance, and phased payment structures, he stressed.
Tehran and Moscow have significantly accelerated their economic integration in response to mutual Western sanctions.
The strategic alignment includes the full implementation of the EAEU FTA, the expansion of the INSTC, and the linking of national financial messaging systems to bypass US financial hegemony.
By shifting the focus from macro-level diplomatic memorandums to micro-level enterprise solutions, Iran is actively empowering its private sector to capitalize on the multipolar economic order, ensuring that the Resistance Economy thrives through practical, profit-driven, and sustainable commercial engagement with the Eurasian bloc.
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