Skip to main content

Iran, Russia to establish trade centers

The two countries will focus on energy-related trading and establishing a north-south corridor to rival the Suez Canal.
Russian Foreign Minister Sergey Lavrov (L) talks with his Azerbaijani counterpart Elmar Mammadyarov (C) and Iranian counterpart Mohammad Javad Zarif (R)in Baku on Aug. 8, 2016.

Iran and Russia signed a memorandum of understanding today concerning the establishment of mutual trade centers. 

One center will be located in the Iranian capital, Tehran, and the other in Russia’s Baltic port city St. Petersburg. They will facilitate trade between the two countries in the energy, transportation, electronics, agriculture, food, pharmaceuticals and construction sectors. The goals of the memorandum are to help Iranian and Russian businesspeople establish contact and conduct financial transactions. The project will also work toward “accelerating the north-south corridor project,” the official Islamic Republic News Agency reported

Russia is facing international outrage over its invasion of Ukraine, but relations between the Russian Federation and the Islamic Republic remain strong. Most recently, Russia has demanded that negotiations on the Iran nuclear deal cover the protection of Russian trade interests with Iran. 

A viable north-south corridor trade route is a major goal of both Iran and Russia. Both countries participate in the International North-South Transport Corridor, which is a trade route with India that involves a system of roads, shipping lines and railways. Russia and Iran promoted the corridor last year as an alternative to the Suez Canal after a ship got stuck in the strategic Egyptian waterway. 

Trade between Russia and Iran steadily rises year by year. In 2019, Russia exported more than $1.5 billion to Iran, while Iran exported more than $500 million to Russia, according to the Observatory of Economic Complexity. This is the most recent year for which the center near the US city of Boston had data.

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Free

The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.

Free

What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing
Expert

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial

We also offer team plans. Please send an email to pro.support@al-monitor.com and we'll onboard your team.

What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial