Code: 810051 A

An Iranian official says the Islamic Republic is prepared to join to Eurasian Economic Union (EEU).

The head of Iran's Agricultural Products Exporters Union Seyyed Reza Noorani, said to ILNA news agency in an expulsive interview that according to free trade agreement between Iran and Eurasia, Tehran could acquire a 5% share of the agricultural market in the first step.

“Iran can earn equivalent of $ 37 billion from this big market.”

The free trade zone treaty can also come to the aid of Iranian producers to export to Europe using preferential trade agreements that some of the Union’s member states such as Kyrgyzstan have with the European Union.

A trade deal between Iran and the Eurasian Economic Union will take effect on October 26, Russia’s Energy Minister Alexander Novak said during a meeting with Iran’s Energy Minister, Reza Ardakanian.

He added after Iran joins the union, 864 items will be traded preferentially by both parties, including 503 items from Iran. This will be a very important event in the relations between Iran and the Eurasian Union that will have important consequences for different sectors of the economy, including the agricultural economy.

The Eurasian Economic Union is an economic union of states located in central and northern Asia and Eastern Europe. The Treaty on the Eurasian Economic Union was signed on 29 May 2014 by the leaders of Belarus, Kazakhstan and Russia, and came into force on 1 January 2015.

Iran became a member of the free-trade union as a means of boosting its economy amid U.S. sanctions by increasing the share of non-oil exports in revenue streams.

Russia, the leader of the EAEU, spearheaded the negotiations and will now provide financial help to the newest member of the union in the form of a US$1-billion loan for the construction of a power plant.

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US sanctions Eurasia Iran's Agricultural Products Exporters Union Eurasian Union
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