The Eurasian Economic Union began its work with a gross domestic product of about $3 trillion and a population of more than 180 million, aiming to promote Eurasian convergence, with the establishment of a free trade zone. The agreement of the establishment of the union was signed by presidents of Russia, Belarus and Kazakhstan in 2014. Then, Armenia and Kyrgyzstan joined it.

The Eurasian Union, with a look at the experience of the European Union, was formed based on the growing economic convergence model, based on the political will of its members, and its ultimate goal is to remove the internal boundaries and achieve the free flow of goods, services, capital, and labor. 

The union headed by Russia, seeks to integrate the economy to supply economic welfare, regional security and approaching countries in economic-commercial dimensions. Iran is one of the key countries that Eurasian Economic Union is seeking long term cooperation with. From the very beginning of the establishment of the union, Iran was one of the most important goals in its development path, and the Union's high officials have pointed it out several times.

With the initial success of the union in advancing economic programs, Iran began to pay attention to it. Ultimately, the preferential trade agreement between Iran and the Eurasian Union was signed between Iran and representatives of five union member countries. Also, at the annual meeting of the Supreme Council of the Eurasian Economic Union in Yerevan, the Islamic Republic of Iran participated for the first time. In 2019, the trade volume between the Eurasian Economic Union and Iran crossed $ 1.5 billion and mutual trade between them increased by 2 percent to $ 2 billion during the first 8 months of 2020.

The $ 30 billion trade capacity of Iran and the Eurasian Economic Union can be a good opportunity to develop mutual relationships. Also a decision to begin talks on the free trade agreement with Iran is while it seems that negotiations on permanent membership of Iran in the union have become more serious. 

According to some in Tehran, the Eurasian Union can extend beyond the geographical area of the Commonwealth and expands to other sectors such as energy, monetary and financial, and technology.  Therefore, it is expected that the relations between Iran and Eurasia will be strengthened and a good capacity to reduce the impact of the U.S. sanctions against Iran will be provided. 

Also, the use of Iran's transit capacities for the emerging economies of Southeast Asian countries is another opportunity for Eurasia Union development cooperation. Considering the specific geopolitical characteristics of Iran, creating a modern and equipped communication corridor between Iran and the Eurasian Union countries would be in favor of both sides.

The Eurasian Economic Union tries to form a joint financial market until 2025, and, at the same time, they are discussing the possibility of creating a common currency for this union. Meanwhile, intensive and technical talks and serious measures are under way to carry out free trade talks between Iran and the union. It is anticipated that the free trade agreement between Iran and the Union will be signed. 

Although due to the prevention of some other countries, Iran has failed to become a member of the World Trade Organization, Iran's membership in Eurasia helps to facilitate expansion of its trade to broader economic levels.

The moving of the Eurasian Economic Union to a path to reduce the dollar dependence gives Iran more freedom. Iran's membership in the treaty can strengthen the country’s prominent role in the International Corridor of the North-South Transportation and help Iran's economic growth. In addition to economic cooperation, the Eurasian Union also can create political opportunities. Interaction at the level of the heads of the countries helps to lubricate cooperation, both in bilateral and regional and international frameworks.

Farzad Ramezani Bonesh

Senior Researcher and Analyst of International Affairs