Tehran and Moscow are aiming to raise bilateral trade to $10 billion over the next three years. The two capitals are calling for the removal of customs barriers and faster trade procedures to achieve this goal. Qadir Qiafeh, deputy head of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), met Leonid Lozhechko, Chairman of the Russian-Iranian Business Council, in Tehran. During the meeting, they discussed trade bottlenecks, logistics, and financial cooperation.
Qiafeh said Russia represents a large market, while Iran has strong export potential. However, current trade levels remain below the economic capacities of both countries. Although trade has improved in recent years, about $4 billion in goods were exchanged under the Eurasian free trade agreement. Nevertheless, this figure is far below the potential range of $10 billion to $30 billion. He identified several challenges. For instance, businesses struggle to apply preferential tariffs and understand tariff schedules. Moreover, delays in information exchange and slow customs procedures, especially for perishable goods, continue to hinder trade.
Logistics also present obstacles. Limited shipping services and underuse of the International North–South Transit Corridor (INSTC) increase transport costs and delivery times. Qiafeh emphasized that completing the corridor would expand capacity and accelerate shipments between the two countries. Financial constraints further complicate trade. Both nations have limited access to international financial systems, and settlements in national currencies remain incomplete. In addition, exchange rate volatility raises costs. Talks to link Iran’s Shetab banking network with Russia’s Mir payment system have continued for six years. Although pilot programs exist, full implementation has not yet occurred.
Lozhechko noted that 89 percent of trade uses direct contracts in national currencies. Yet many transactions still go through third countries, adding costs. Therefore, Russia plans to reduce intermediaries and expand direct financial channels. A Russian bank branch may open in Iran, and VTB Bank has allocated $2 billion to support Iranian traders. In transportation, authorities have added 28 vessels on the Caspian Sea to facilitate shipments, with 30 more planned by 2035. Rail routes via Astara and through Kazakhstan and Turkmenistan will also speed up cargo movement. Logistics agreements with the UAE, Iran, and Russia aim to deliver containers from Bandar Abbas to Moscow within two weeks.
Both sides acknowledged that customs procedures remain a major obstacle, particularly for food products. Multiple border checks and documentation errors cause delays and affect product quality. Training seminars for Iranian traders are planned to address these issues. Finally, Qiafeh stressed that chambers of commerce should play a more active role in information flow, joint investment, and technology transfer. Key sectors include oil, gas, petrochemicals, mining, and logistics. With stronger private sector support and better implementation of existing agreements, reaching the $10 billion trade target is achievable.