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Iran serves as a strategic crossroads connecting three continents, with the Caspian Sea acting as a vital trade route linking Iran and Russia.
The Iran-Russia Expo took place over three days, from October 18th to 20th, at the International Conference Center in Milad Tower. This event provided a platform for Russian and Iranian companies to demonstrate their collaborations in various sectors, including oil, gas, petrochemicals, transit, logistics, international transportation, as well as media, technology, and knowledge sharing. Additionally, specialized panels and roundtable discussions on transportation, trade, healthcare, and energy were held on the sidelines of the exhibition.
Alexey Dedov, the Extraordinary and Plenipotentiary Ambassador of the Russian Federation to Iran, stressed the importance of boosting trade and economic cooperation between Iran and Russia. He highlighted the pivotal role played by the Iran-Russia Joint Government Commission, led by Mr. Oji and Mr. Novak. The unprecedented sanctions against Russia have spurred the growth of multifaceted bilateral relations between Iran and Russia.
I have read the message from Mr. Lavrov, the Minister of Foreign Affairs of the Russian Federation, regarding this event:
“Relations between Iran and Russia have a deep historical foundation and are of strategic significance. These relations continue to grow and expand at all levels of government. Over the years, Russia and Iran have reached a high level of bilateral cooperation.”
Furthermore, Seyed Mahmoud Hosseini-Pour, the Governor of Mazandaran, noted, “The relationship with Russia has witnessed many fluctuations throughout history. The alignment of both countries on national and international matters, along with the strengthening of human and cultural ties in recent decades, signifies the emergence of a new alliance against Western unilateralism, led by the United States.”
The history of relations between Iran and Russia spans from before and after the revolution. Opportunities for collaboration between Iran and Russia, particularly among the Caspian littoral states, are extensive.
Mazandaran, endowed with natural resources, human capital, infrastructure, and transportation, holds immense potential for developing trade with neighboring countries, especially Russia. Mazandaran’s strategic location within the common interests of independent nations and the Eurasian Economic Union offers significant prospects, especially with the extension of the trade agreement between the Eurasian Economic Union and the Islamic Republic of Iran. This province can play a vital role in advancing the country’s foreign trade.
Cooperation in the domains of oil, gas, energy, modern technologies, and knowledge-based partnerships, with a particular focus on transportation to activate the North-South corridor and, in general, collaboration in the Caspian Sea as a zone of peace and friendship, are among the fundamental plans in Mazandaran Province.
He emphasized the significance of the three active northern ports in Iran, indicating that these ports in Mazandaran Province provide the necessary infrastructure for the transit of goods from Iran to Russia. Today, transportation stands as a pivotal indicator of developmental progress for nations.
Russia, located in the heart of Eurasia, and Iran, strategically connecting three continents, can establish a robust foundation for regional cooperation. The Caspian Sea acts as a vital trade route between Iran and Russia.
The Governor of Mazandaran underscored that President Putin of the Russian Federation mentioned the Amirabad port three times during his meeting with Dr. Raisi, the President of Iran, highlighting the importance of Mazandaran Province in activating the North-South corridor. The energy capacities of Iran and Russia are critical, as they jointly possess over 45% of the world’s gas reserves, ranking first and second, and holding significant positions in global oil resources, with Iran ranking fourth and Russia eighth.
Rajab Safarov, the head of the Iran-Russia Chamber of Commerce and Economy, stressed the common interests and strong trade relations between Iran and Russia, emphasizing the need to harness each other’s potential for enhanced cooperation. The world depends on energy resources from both Iran and Russia, and by strengthening their collaboration, they can reach new heights. Last year, the financial turnover between Iran and Russia amounted to approximately $5 billion.
However, banking relations between the two countries remain challenging, with the absence of a precise banking system between Iranian and Russian banks being a significant issue. Currently, financial transactions are routed through Armenia, Turkey, or Dubai, resulting in increased time and inefficiencies. Slow-paced international transportation also poses challenges in the trade relationship between Iran and Russia.
Andrei Belnikov, the trade representative of the Russian Federation, mentioned that there was an 87% increase in financial turnover between Iran and Russia in 2022, with 80% of it related to food products. However, many Iranians suggest commencing cooperation by establishing third-party companies in Turkey, Dubai, or Armenia. Yet, this approach is not without challenges and lacks control. Financial exchanges also encounter significant obstacles in this regard.
He further discussed the activation of the North-South corridor, indicating that there are three routes from northern Iran within the North-South corridor. One route traverses the Caspian Sea, although there is a shortage of ships. The infrastructure of Russian ports is inadequate, while Iranian ports possess the necessary facilities.
The western route through the Azerbaijan and Iran border encounters issues in rail transportation, specifically with loading and unloading. The Turkmenistan route is unsuitable for all rail companies, and many Russian firms are not interested in utilizing this route.
