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Indian Prime Minister Narendra Modi with the President of Iran, Hassan Rouhani, in Jomhouri Building, at Saadabad Palace, in Tehran on May 23, 2016 [Image: PMO, India]
Despite the threat of further sanctions on Iran, its oil industry is continuing to do brisk trade with a number of countries, including the BRICS.
According to Iranian oil industry sources in Tehran, overall bilateral trade with BRICS countries reached 53.78 million tons.
While this is a decline of just over 8 per cent year on year, its value is up 7.4 per cent due to higher oil prices.
The volume of trade reached a value of just over $29 billion in the year ending March 21, 2018.
In the meantime, India has moved ahead boosting its strategic trade ties to Iran.
In February, Indian Prime Minister Narendra Modi signed nine new trade agreements with Iranian President
The agreements include the development of the strategic port of Chabahar in Iran.
India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest $85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.
The port of Chabahar in southeast Iran is pivotal to India’s efforts to open up a route to landlocked Afghanistan where it has developed close security ties and economic interests.
In April, Iran and Russia agreed to work together within the framework of a Moscow-led Eurasian Economic Union (EEU) following three years of discussion and negotiations on free trade.
The agreement, which will require ratification in both countries, will bolster bilateral trade and investment and also open Iranian markets and investors to the other EEU members – Kazakhstan, Belarus, Armenia, Kyrgyzstan and Vietnam.
Iran’s inclusion into the EEU will help it access markets that may have been previously blocked due to US sanctions.
Once ratified, Iran will be expected to establish a free trade zone for EEU trade.
The BRICS Post with inputs from Agencies
