Free Trade Agreement Between Russia and Iran by Year-End?

The Russian news agency TASS reported today, Monday, that the Russian Deputy Prime Minister stated that it is possible to reach an agreement to establish a free trade zone between Iran and Russia along with several countries covering the vast Eurasian region from the eastern borders of Europe to western China by the end of the year. Deputy Prime Minister Alexey Overchuk mentioned in comments to the agency that "talks between Iran and the Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, are in their final stages." He added: "We are moving forward; we have high hopes that such an agreement will be signed by the end of the year." Overchuk confirmed to TASS that "negotiations are ongoing between the member states of the Eurasian Economic Union regarding the establishment of a common gas market." The region and Iran have gained additional importance for the Kremlin after the sanctions imposed by the West on Russia due to its invasion of Ukraine, which limited Russia's foreign trade routes and forced it to seek markets outside of Europe. Despite strengthening ties between Moscow and Tehran since Russia's invasion of Ukraine in February 2022, and beginning significant purchases of Iranian-made drones for use in attacks on Ukraine, trade between the two countries has not seen a considerable increase. Government data indicated a 20% increase in the exchange of goods between Russia and Iran in 2022. The regional agreement with Iran is set to replace a temporary agreement that stipulates the reduction of customs duties on hundreds of types of goods.