TEHRAN – While Iranian traders continue to face difficulties transferring funds with business partners in various countries, the problem has been partly resolved in trade with Russia.
 Muhammad Ali Dehghan Dehnavi, head of Iran’s Trade Promotion Organization, said at a press conference on Monday that removing non-tariff barriers and facilitating foreign-exchange transfers are priorities in Iran’s negotiations with the Eurasian Economic Union, particularly Russia. 
He added that a mechanism for conducting trade between Iran and Russia using the two countries’ national currencies has been established.
Despite the signing of currency agreements and repeated arrangements with Iran’s trading partners to settle transactions using the rial and the currency of the destination country, bilateral trade continues to face significant obstacles.
A severe imbalance in the trade balance, the lack of a sustainable mechanism to hedge against currency fluctuations, and the absence of a joint settlement institution have left Iranian exporters waiting to convert their receivables.
Dehghan Dehnavi said, however, that the main challenge stems from sanctions-related considerations and the cautious approach of Russian financial institutions toward operational cooperation.
Despite these concerns, he said financial transactions with Russia are considerably more favorable compared with those with other trading partners, and the existing concerns do not constitute a deterrent to expanding bilateral trade.
Dehghan Dehnavi added that Iran’s foreign trade by weight declined by about 34% in the first half of the current Persian year, while alternative trade routes and private-sector capacities helped sustain a significant portion of the country’s imports and exports amid maritime restrictions.
The head of the Trade Promotion Organization of Iran announced that about 75% of Iran’s foreign trade by weight was conducted by sea last year, adding that the decline of around 34% in the first half of this year indicates that a considerable share of trade has continued through alternative routes.
Dehqan Dehnavi noted that the value of exports fell by about 20%, compared with a decline of 34% to 35% in trade volume. The smaller drop in export value suggests that higher-value goods have been better able to absorb additional transportation costs and remain economically viable for exporters, he explained.
He also warned that a decline in imports of raw materials, intermediate goods and machinery could affect domestic production, stressing the need to use alternative methods to facilitate the import of goods required by manufacturers.
Economic operators and relevant authorities have been working to maintain foreign trade flows despite higher transportation costs and difficulties along trade routes, with the ultimate goal of safeguarding economic stability and ensuring the continuity of trade under existing restrictions, he stated.