A comprehensive Free Trade Agreement between Iran and the Eurasian Economic Union (EEU) will come into force on May 15, paving the way for stronger economic ties and potentially doubling trade volumes, the Eurasian Economic Commission (EEC) announced on March 17.

"The Commission has received official notification from Iran about the completion of domestic procedures necessary for the agreement to enter into force," EEC Trade Minister Andrey Slepnev said in a statement. The EEU had already sent its confirmation to the Iranian side in January 2025.

According to the agreement's provisions, a 60-day period must follow the exchange of notifications before the pact takes effect. The deal had been in the works for years but faced legal hurdles in Iran until the Guardian Council, the country's constitutional watchdog, approved it on March 2 after determining it did not contradict the constitution.

The comprehensive agreement, which replaces a temporary arrangement in place since 2019, will eliminate tariffs on approximately 87% of traded goods, covering more than 95% of mutual trade. Under the temporary agreement, trade between Iran and the EEU nearly doubled from $2.1 billion to $4.1 billion.

"Implementation of the new agreement will become an effective tool for developing trade between our countries and in the foreseeable future will help bring mutual trade turnover to a record $12bn. This means approximately a twofold increase compared to current volumes," the EEC press service stated.

The EEU, comprising Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, offers Iran a vital economic corridor as it grapples with Western sanctions. The new agreement grants Iran wider access to the bloc's 240-million-strong market.

Iranian officials have stressed the strategic importance of the agreement in strengthening the country's position in regional trade networks and reducing its economic isolation. Iranian Parliament Speaker Mohammad Baqer Qalibaf has praised the upcoming free trade agreement with the EEU as a strategic opportunity for Iran to strengthen regional economic ties amid Western sanctions, Aftab News reported on March 17.

"This agreement represents a significant step in our economic diplomacy and offers Iran expanded market access in a critical region," Qalibaf said during his annual end-of-year television interview. "The EEU partnership provides us with trade opportunities that are independent of Western economic pressures."

The comprehensive free trade agreement between Iran and the EEU will come into force on May 15, following Iran's completion of internal ratification procedures. The Eurasian Economic Commission received official notification from Iran, with the 60-day implementation period now underway.

First Vice President Mohammad Reza Aref highlighted the agreement's potential economic benefits during a visit to the Treasury, calling it "a cornerstone of our economic resilience strategy," Al-Alam reported on March 18.

"This agreement will help increase our non-oil exports and strengthen trade relations with our northern neighbours, which is vital for our economic development," Aref said. He added that increasing trade with the EEU aligns with Iran's focus on regional economic integration.

The pact is expected to provide Iran's struggling economy with a much-needed boost while helping the country diversify its international trade partnerships. The agreement spans 147 articles and six annexes, covering a broad range of economic cooperation areas. For Iran, it represents an opportunity to increase exports of agricultural products, textiles, and industrial goods to EEU member states, while gaining access to necessary imports at lower costs.

Russian media outlet Kommersant noted that the temporary agreement implemented in 2019 had already helped double bilateral trade, suggesting the permanent agreement could have an even more significant impact.

The Iran-EEU agreement was signed on December 25, 2023, in St Petersburg after extensive negotiations and represents one of the most significant trade developments for Iran in recent years as it seeks to strengthen regional economic ties amid ongoing Western sanctions.

Russia remains the top destination for Iranian goods within the EEU, with imports totalling 2.1mn tonnes, worth $889mn, nearly half the weight and over half the value of Iran’s exports to the bloc.

Armenia ranks as Iran’s second-largest regional trading partner, accounting for 40.1% of the weight and 24.7% of the value of exports.