ASTANA (Dispatches) -- The Moscow-led Eurasian Economic Union aims to finalize a free-trade deal with Iran by the end of the year, in an attempt by Russia and its fellow members to deepen ties with Tehran.
The trade overtures are taking place amid signs that Iran’s relationship with the U.S. will deteriorate under the administration of Donald Trump. The U.S. president last week attacked Iran during visits to Saudi Arabia and Occupied Palestine, days after Iran re-elected President Hassan Rouhani.
Russia and Iran cooperate on a number of geopolitical issues, most notably in the war in Syria. The two countries have sought to deepen their relationship since the EU and U.S. imposed sanctions on Moscow in 2014.
Putin said last August that Moscow wanted Iran to join the EEU – a move that was seen as crucial in bringing the two countries closer in their plans to form a strategic partnership.
Putin emphasized that a research had already started overt the possibility of creating a free-trade zone between Iran and the EEU.
"Iran is Russia’s longtime partner. We believe that bilateral relations will benefit from the reduction of tensions around Iran following the comprehensive agreement on the Iranian nuclear program,” Putin was quoted as saying.
Reaching a deal on free trade would represent a notable victory for the nascent EEU — a single market of Russia, Kazakhstan, Belarus, Kyrgyzstan and Armenia set up in 2015 — and mark a significant strengthening of relations between Iran and the former Soviet republics.
"We believe we can come up with something substantial by the end of the year?.?.?.?finished talks,” said Timur Suleimenov, Kazakhstan’s minister of economy.
The EEU’s prime ministers resolved in March to make talks with Tehran a priority, scenting an opportunity to expand beyond the bloc’s combined market of 183 million people.
"We would like to have a framework signed then,” said Suleimenov, who became minister in December after previously working as the minister in charge of economy and financial policy at the EEU Commission in Moscow.
At the same time, Suleimenov warned that any souring of U.S.-China trade relations under Trump would be harmful for Central Asia.
Trump’s campaign for the White House was marked by strong anti-free trade rhetoric and heavy criticism of China, which he threatened with import tariffs and a move to label it a currency manipulator.
China’s One Belt One Road policy to aggressively expand trade relations with Central Asian countries is seen in the region’s capitals as a crucial driver of their economic growth.
"I am personally afraid of (Trump’s) dealings with China,” Suleimenov said.