Russia-Iran talks on a trade agreement are in their last lap, Russia’s state-owned news agency TASS said. The FTA between Iran and the Eurasian Economic Union (EAEU) — a unified economic space comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia — could be signed by year’s end, Russia’s Deputy Prime Minister Alexey Overchuk told TASS.

Governments are on board: “Now, indeed, the EAEU has come very close to concluding such an agreement with Iran. This issue was touched upon, including at the Eurasian Intergovernmental Council and received the support of the heads of government. Therefore, we are making progress. The agreement can be signed,” Overchuk said.

Trade with Iran gained renewed importance for Russia after Western sanctions left Moscow cornered,Reuters explains. Punitive measures levied against Russian trade in the wake of the country’s invasion of Ukraine have forced Moscow to look for alternative markets. A regional accord would scale up interim arrangements between Russia and Iran on reduced customs for hundreds of goods categories. Despite Russia’s recent purchases of large numbers of Iranian drones, commodity trade with Iran grew by only 20% in 2022, Reuters added.

Russian negotiators are also pursuing FTAs with Egypt, India, Indonesia, and the UAE, Overchuk added in his interview with TASS. “All these countries are friendly to us, they are growing markets, so respectively the economic center of the new multipolar world is moving in their direction," he said.

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