Russia, Iran, Discuss Joint National Food Security Programmes

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Russia to replace its food imports from the European Union from other markets

Alireza Peyman-Pak, Iran’s Head of Trade Promotion & Organization (TPOI) stated on Monday (April 18) that Iran’s recent trade conference in Moscow was successful, and coordination had been made with Moscow to ensure national food security for both countries as they jointly contend with SWIFT disconnection and massive sanctions.

“We predict that the Ukraine conflict will last and that sanctions will continue to be imposed on Russia. Therefore, the issue of food security, supply of oil, wheat and barley was prioritized, and in this regard, a long-term agreement for the supply of these items was put on the agenda, and necessary measures have been taken in coordination with Russia in this regard,” Alireza Peyman-Pak stated.

The TOPI head also pointed to a recent Moscow-hosted trade conference between Iran and Russia and said, “The visit of the Iranian delegation to Russia is considered successful. About 40 meetings were held during this event and free trade agreements were signed with 6 Eurasian member states.”

He added, “After the agreement with the Russian side, the customs of the strategic port of Makhachkala was reopened, which will have significant benefits for the exports to Russia.”

The head of the Trade Development Organization also noted that the country’s exports grew by US$13 billion last year, adding, “We are trying to control fluctuations in the export sector so that the presence in the target markets would be long-term.”

Russia and Iran signed a 20 year cooperation agreement last year. This 2020 paper here examines the Russia-Iran and Eurasian Economic Union (which Iran also has a Free Trade Agreement with) bilateral food trade.

Russia and Iran have high trade capacities for some items in certain food groups, and that they can facilitate the process of economic integration through reinforcing regional interactions and intra-region trade expansion, while safeguarding national interests and improving national security. The paper concludes that Iran’s food exports to Russia in a particular set of commodity codes enjoy the potential of expansion due to structural similarities between the countries’ food exports, the increasing trend of Iran’s food export potential to Russia, the increasing advantage of these commodity codes in Iran’s export to the world, and the increasing trade expansion opportunities from Iran to Russia and is another indicator that Russia will replace the entirety of its food imports from the European Union from other markets.

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