The EAEU–Iran Free Trade Agreement was signed between the Eurasian Economic Union and Iran in St Petersburg on 25 December 2023 and entered into force on 15 May 2025. According to the Eurasian Economic Commission, it introduces duty-free treatment for about 90% of the product nomenclature and replaces the limited interim agreement in force since 2019.
What is the EAEU–Iran Free Trade Agreement?
The EAEU–Iran Free Trade Agreement is the full-scale agreement that largely removes customs duties on trade in goods between Iran and the five members of the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia). The general logic of free trade agreements is explained in free trade agreement, and the internal workings of the Union in trading with the Eurasian Economic Union.
What stages did the agreement go through?
| Date | Development |
|---|---|
| 17 May 2018 | Interim agreement covering a limited list of products signed |
| 27 October 2019 | Interim agreement entered into force |
| 25 December 2023 | Full-scale agreement signed in St Petersburg |
| January 2025 | The EAEU side notified Iran that its internal ratification procedures were complete |
| 15 May 2025 | The agreement entered into force 60 days after the exchange of notes and replaced the interim agreement |
What changed in customs duties?
According to the Eurasian Economic Commission, the full agreement provides for duty-free trade in almost 90% of the product nomenclature. The parties expect bilateral trade to reach a record USD 12 billion, roughly double the current volume. According to a statement by Russian Deputy Prime Minister Alexei Overchuk to Interfax:
- the average import duty Iran applies to Russian goods falls from 16.7% to 5.2%;
- the preferences cover more than 93.7% of Russia's exports to Iran;
- duties are reduced to zero for electrical equipment, ferrous metals, sugar and beef.
Who benefits from the preferential duties?
The preferential regime applies only to goods originating in the parties to the agreement. This means the goods must have been produced in an EAEU member state or in Iran under the agreement's rules of origin, and this must be proven by a valid certificate of origin. The country from which the goods are dispatched is not enough on its own; the distinction is explained in preferential and non-preferential origin.
Turkey is not a party to this agreement. Goods of Turkish origin travelling to Russia or Iran do not benefit from it; a separate preferential trade agreement has been in force between Turkey and Iran since 2015, and its origin document is covered in Iranian proof of origin. Transit of Russian-origin goods through Georgia or Turkey does not in itself change their origin; however, most free trade agreements require proof that the goods remained under customs supervision during transit, so transit documents should be kept on file.
What is checked for a Russia–Iran shipment at a preferential duty rate?
- whether the tariff heading of the goods is on the agreement's duty-free list;
- whether the rules of origin are met and which body issues the certificate of origin;
- whether the description of goods on the invoice, packing list and CMR matches the certificate of origin exactly;
- whether documents showing that the goods remained under customs supervision in the transit countries are kept on file.
How does the agreement affect transport?
Because the duty cuts make Russia–Iran trade in goods cheaper, they also affect demand for transport between the two countries. This demand is spread across the different branches of the North–South corridor; on the road side, trucks from Russia to Iran can also travel via the Caucasus and Turkey.
For transport planning, the agreement shows up in the document set: if a preferential duty rate is to be claimed, the certificate of origin and invoice details must be prepared in full and travel with the cargo. Which tariff heading is subject to which rate is a matter of the customs tariff, not of transport; the rate is confirmed from the official tariff or with a licensed customs broker. The basis of classification is explained in the HS code (GTİP). How road freight from Russia via Turkey to Iran works is described on the Russia–Turkey–Iran road freight page.