Iran, Armenia formalize barter trade agreement in Yerevan

Date

10/3/2024 4:56:09 AM

(MENAFN) Iran and Armenia have recently formalized a barter trade agreement during the 3rd Eurasian Economic Forum in Yerevan, further solidifying their economic ties. The agreement was signed by Mohammad-Ali Dehghan Dehnavi, the Head of Iran’s Trade Promotion Organization (TPO), in the presence of Iranian Minister of Industry, Mining, and Trade Mohammad Atabek and Armenian Economy Minister Gevorg Papoyan. This deal sets the stage for the two nations to appoint representative companies for the execution of the barter trade within three months following the signing, with TPO responsible for selecting the Iranian companies involved.

Iran sees barter agreements as a strategic approach to circumvent U.S. sanctions that hinder its access to international trade. The signing of this agreement follows the recent inauguration of Iran’s trade center in Yerevan, which spans 18,000 square meters and houses 107 booths dedicated to selling Iranian consumer goods, chemicals, and various industrial products. The center also incorporates Armenian businesses, providing a platform for joint commercial endeavors. Iranian ambassador in Yerevan, Mehdi Sobhani, labeled this facility as the “largest Iranian trade center in the world,” asserting that it will significantly enhance trade relations between Iran and Armenia.

During the signing ceremony, officials from both sides emphasized the need to eliminate financial and banking obstacles that have previously restricted trade. They also discussed facilitating the issuance of guarantees for Iranian technical and engineering service contractors in Armenia and addressing certain customs restrictions. Furthermore, the Armenian government expressed its intent to invest in Iran’s Chabahar Port, highlighting its strategic importance in enhancing trade connectivity.

The leaders of both nations are aiming to escalate the value of their bilateral trade to USD3 billion annually. Iran perceives Armenia as a crucial conduit for accessing markets within the Eurasian Economic Union (EAEU), which includes Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia. Currently, Iran and the EAEU are operating under a preferential trade arrangement, with plans to implement a free trade agreement signed in December last year, pending ratification by their respective parliaments.

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