Russian business will be presented on the Iranian market

By Vestnik Kavkaza
Russian business will be presented on the Iranian market

Recently, after being in conditions of severe economic sanctions from the West for several years, Iran got the opportunity to get rid of them and to develop its economy, including in cooperation with Russia. Businessmen from both sides, however, have repeatedly pointed to the fact that business contacts are impeded by the lack of effective mechanisms for banking and financial security, a lack of awareness about mutual opportunities and the language barrier.

Earlier this year the participants of the conference ‘Iran after the lifting of sanctions. Prospects for Russian business’, organized by Vedomosti, agreed that the opportunities for Russian-Iranian trade and economic cooperation are as wide as possible. For example, Iran has developed its technology sector, there are 232 technoparks, the country is in fourth-fifth place in the world in terms of publications in the field of nanotechnology. Iran's GDP amounted to 1.3 trillion dollars in the fiscal year to March 2015, Russia's GDP in 2015 turned out about the same due to the devaluation. The trade turnover between Russia and Iran in the past year amounted to only 1.25 billion dollars. But now Russia may increase the export of grain and oil, timber, metal, fertilizers.

As the deputy director of the Institute of Prediction and Resolution of Political Crises, Alexander Kuznetsov, told Vestnik Kavkaza ‘’Russian-Iranian relations are at a good level, but it is necessary to improve this level.’’ "Our countries are interested in each other, and the process will be positive. The former Iranian Ambassador to Russia, Reza Sajjadi, aimed to bring our trade turnover to the level of 12-15 billion, this was consistent with the potential of our countries.

Reza Sajjadi

Now it will be more difficult for Russia, because there are competitors, and Iran has a choice. We will have to compete with both the EU and China, powerful economic forces," Kuznetsov said.

According to the expert, "Iran is a very specific country, the Iranians will never put all their eggs in one basket. That is, they will balance, and some percentage of our business and our companies will operate in the Iranian market, of course. Another thing is how we will be able to take advantage of this opportunity, that is the most important thing."