“It’ll take a long time to develop EEU-Iran relations, from which Armenia may have big benefits”
“Years will be required to develop EEU, EEU-Iran cooperation,” Konstantin Simonov, Russian economist, told “168 Hours” reflecting to signing Iran-EEU free trade zone agreement.
Alexander Novak, Minister of Energy of Russia, stated that the document on a free trade zone between EEU and Iran may be signed during the visit of Iran’s president Hassan Rouhani’s visit to Moscow, which will be held in late March.
“The delegation on discussion of free trade zone agreement between Iran and EEU is in Tehran today. Active works are carried out around the text of the document, and we hope prior to Iranian president’s visit to Moscow the document will be ready for signing,” he said.
Earlier it was stated that the agreement on a free trade zone with Iran will be implemented by a few rounds. This means, initially the free regime will function only for a group of certain goods.
Final list of the goods to be included in the first stage of the agreement hasn’t been confirmed yet. It may involve production of light industry and agricultural industry complex.
Konstantin Simonov recorded, that these projects will mandatorily succeed, and the Armenian side had its stabile role in that issue about two years ago, when Armenia’s president proposed that Armenia became a bridge between Iran and EEU.
In his words it became a perspective proposal, which interested both the Iranian side and EEU. “As you remember, during his visit to Yerevan Hassan Rouhani touched upon the point that Armenia’s membership to EEU makes Armenia-Iran relations more perspective, opening new opportunities before both Armenia and Iran.
Naturally, Iran, Armenia and EEU member countries will benefit from this new format, and I consider nothing prevents preparation and signing of the document, and maybe its ratification will be recorded in near future. It’s necessary to touch upon the point what importance and scales would that project have, if there were no issues,” Konstantin Simonov said.
According to him Trump’s administration, discordances inside EEU, Russia’s conflicts and economic crisis obstacles both EEU and Iran.
“All this allows assuming that in near future Iran-EEU cooperation can’t develop with all its scale due to these issues, i.e. currently a few groups of commodities are touched upon, their transit should be resolved, Iran faces threat of new sanctions, which will require certain resources.
Thus, I consider even if we have a signed agreement this month, long time will be necessary to totalize the agreement and solve all the issues,” the Russian economist said. Simonov believes in the future Armenia may gain serious benefits from this format: Iranian investments in Armenia, free trade zone with Iran, joint enterprises, transit benefits. “However, of course, this isn’t an issue of a year or so.
Years will be necessary both for EEU full operation and development of this new format, as today even EEU doesn’t function as an economic organization,” he said.
By Araks Martirosyan
