The new partner has strong experience in matters of sanctions survival

As reported by Business Eurasia, within the framework of the Free Trade Agreement (FTA) between Iran and the EAEU, full-scale functioning began on May 15, 2025. The editorial board invited Natalya Berchenko, Director of the Research Economic Institute of the Ministry of Economy of the Republic of Belarus, PhD in Economics, Associate Professor, to discuss the interaction of Eurasian business in the Iranian market.

— Hello, Natalya Gennadyevna! Thank you for your time and openness to dialogue with journalists. What, in your opinion, are the prospects for cooperation between Belarus and Iran?

— Hello! In the conditions of the modern global economy, cooperation between countries is an integral element of their sustainable development and strengthening of their positions in the international arena. In this context, Belarus and Iran are forming a dynamically developing partnership based on mutual interests and strategic priorities. The development of trade relations, investment projects and technological exchange contributes to the deepening of bilateral cooperation, creating new opportunities for economic growth and strengthening integration between states.
The economic paths of Belarus and Iran have a number of similarities. Both countries have faced tough sanctions pressure from the "Western bloc" countries and are aimed at developing a self-sufficient sovereign economy.
Iran's experience has been a serious help in reducing the effect of external restrictions in recent years. The states maintain close diplomatic contacts with each other and with the countries of "Greater Eurasia", and in March 2023, Belarus and Iran signed a Roadmap for Cooperation for 2023-2026, which is being implemented today.
Economic cooperation between Belarus and Iran within the framework of the EAEU covers a wide range of areas with high potential for development. According to the signed protocol on cooperation for 2025, industry, trade, agriculture, transport, education, healthcare and electric power are recognized as priority areas of cooperation.

— How would you characterize the state of mutual trade between the two countries?

— Belarus and Iran have a long history of relatively stable mutual trade with a wide basket of goods, which has changed somewhat over the years, and comparable reciprocal volumes of supplies, providing mutual benefits for both parties.
Compared to 2020, which was characterized by difficulties in the Iranian economy and cross-border trade in general, the trade turnover of the two countries has grown more than fivefold, having recovered to the peak values ​​reached in the early 2010s. In general, over the past 20 years, taking into account fluctuations in demand in Iran, the turnover of commodity trade has increased more than threefold.
A significant part of Belarus's supplies to Iran is traditionally formed by various chemical fibers and trucks (mainly quarry dump trucks for the country's mining industry). In addition, cellulose, timber, food production equipment, various components, and special equipment are supplied. There is experience in exporting potash fertilizers, tractors, and buses.
Iran's supplies to Belarus mainly include consumer goods, in particular certain types of berries, nuts, vegetables and fruits, as well as carpets, medicines and decorative stones. In addition, Iranian medical equipment is imported, represented by certain electrodiagnostic equipment.

— The "Free Trade Agreement between the EAEU and the Islamic Republic of Iran" has been in preparation since 2018, and has passed all stages of discussion and approval, including the stage of temporary interaction. In 2013, the Temporary Agreement was updated to a full one. What is the role of the Iran-EAEU trade agreement? Why is it so important for the Eurasian union?

— The Iranian economy, despite its partial dependence on the global market situation and the burden of sanctions, is quite stable and prone to dynamic development, including in technologically intensive industries, which provides a solid foundation for realizing the potential benefits of the Free Trade Agreement.
Iran is also characterized by a growing population of over 90 million people. In the strategic perspective, this provides a capacious consumer market. At the same time, the level of GDP per capita in Iran is comparable to that of Belarus's traditional trading partners in the CIS (about 4.6 thousand US dollars in 2024), and the country's economic structure is similar in many ways to the former Soviet republics, which indicates the possibility of comfortable work for Belarusian suppliers.
In addition, at the moment, the Free Trade Agreement with the EAEU is the only full-fledged agreement of Iran (under GATT Art. XXIV), which should provide additional advantages to Belarus and other EAEU countries in comparison with third countries. At the same time, it includes limited finished products of mechanical engineering, emphasizing the desire of the countries to ensure sustainable and safe development of technologies and stimulating the creation of joint ventures.
A sharp increase in trade turnover from the entry into force of the Agreement, due to the continued general closure of the Iranian market, is not expected. However, the Agreement is already capable of giving stability to trade flows, strengthening trade ties and fixing the mutual presence of the participating countries in the markets. In general, Iran may well be considered as a promising direction for increasing exports. These are meat and dairy products - beef, butter, poultry; vegetable oils; compound feed and premixes for animals; complex technical products; equipment and developments in the field of industrial production of food products and agriculture.

- What investment projects are interesting for industrial cooperation with Iran?

- Belarus, in an effort to strengthen external ties with the "East", is interested in industrial investments in Iran. Thus, at the beginning of 2025, several joint projects in the field of industrial cooperation were already under consideration, awaiting practical implementation.
In particular, the list includes the organization of production of tractors, combines, buses, including electric buses in Iran. Today, the Iranian authorities pay great attention to "green energy" and environmental issues, in connection with which it is justified to propose using Belarus' experience in the field of passenger electric transport.
Among the promising areas for cooperation and collaboration, where Belarus and Iran already have specific competencies, the petrochemical and mining industries, foundry production and production of components for equipment, production of equipment for road construction, electronics production and instrument making, agriculture and the food industry stand out.

— What opportunities for developing cooperation in the field of transport can be noted between Iran and Belarus?

— From the point of view of Belarus, Iran has an advantageous geographical position, can act as a bridge to the Persian Gulf states, a transit hub for multimodal transportation of Belarusian goods. In the field of freight traffic for Belarus, a significant issue today is the progress of construction of the Astara-Rasht railway section and on the way to the port of Chabahar - one of the largest in the country, a key element of the North-South International Transport Corridor, expanding access to the Indian Ocean. In addition, Belarus is interested in developing cooperation in the field of air transport and opening a direct air service Tehran-Minsk-Tehran by Iranian air carriers. The trade agreement between the EAEU and Iran, due to the higher institutionalization of trade, will facilitate the interaction of Belarus and Iran in the field of transport, as well as the recent accession of both countries to the Shanghai Cooperation Organization (SCO), a significant part of whose current agenda is occupied by issues of expanding Eurasian transport trade communications.

— How do you see cooperation with Iran through the SCO and in other areas?

— Simultaneous membership of countries in the SCO can serve as a support for the joint promotion of other international initiatives. These include, for example, the project of the International Association of Commodity and Futures Exchanges, which was proposed by the St. Petersburg Exchange and supported by the Belarusian Universal Commodity Exchange in April as part of an international online conference with representatives of the SCO countries.
Also, at the beginning of the year, following a series of meetings of the delegation of the Belarusian National Center for Marketing and Price Study with partners from Iran in Tehran, an agreement was reached to intensify the Belarusian-Iranian business agenda in 2025, including within the SCO. The parties agreed to exchange visits of expert delegations in order to develop joint steps to support exporters of both countries, which will result in a series of analytical materials for business.
In addition, the Belarusian delegation agreed to give impetus to the work of the SCO Business Council at a meeting with the Chairman of the Iran-China Chamber of Commerce and Industry. The expediency of a meeting of the chairmen of the national parts of the council was noted even before the SCO forum, which will be held in July 2025 in Beijing.

- Thank you!

Reference from "Business Eurasia":
The Free Trade Agreement between the EAEU and Iran dated December 25, 2023, establishes a duty-free regime for almost 90% of the product range - it provides for a reduction in the average import duty rate on deliveries from the EAEU to Iran from 20% to 4.5%.
According to EEC experts, the entry into force of the Agreement on May 15, 2025, could double the trade turnover to USD 12 billion. The Agreement replaces the temporary agreement that has been in force since 2019 for a limited list of products.

Vasily Kochanov
Business Eurasia