Features of Iran’s Integration Efforts in Trade Relations with Russia

Abstract

The relevance of this research is determined by the growing interest in integration processes in Eurasia and their impact on international trade relations, particularly in the context of the interaction between Russia and Iran. In the face of global economic challenges, Iran’s integration efforts within the framework of the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organization (SCO) become a significant factor contributing to the development of foreign economic ties. The novelty of the study lies in the application of various econometric methods to the analysis of trade and integration between Iran and Russia.Aim. The purpose of this study is to study the impact of Iran’s integration process into the economies of the EAEU and SCO on the foreign trade relations between Russia and Iran.Tasks. The objectives of the research include calculating the trade complementarity index to assess the mutual complementarity of the trade profiles of Iran, Russia, and their trading partners, analyzing economic data and indicators of EAEU and SCO integration to gain a deeper understanding of Iran’s integration process into the regional economy and its implications for trade between Iran and Russia, as well as developing an econometric trade model to evaluate the influence of various factors, particularly those related to integration, on the trade turnover between Russia and Iran and other countries.Methods. The methods employed include econometric modeling of international trade using a gravity approach, calculating the trade complementarity index, and descriptive statistics.Results and Conclusions. The results demonstrate a low level of trade complementarity between the trade profiles of Russia and Iran, which may indicate a weak potential for trade development. Nevertheless, trade between Russia and Iran is at a low stage of development, and there is significant potential for growth in various areas. Iran’s successful efforts to integrate into the EAEU, the conclusion of a Temporary Agreement leading to the establishment of a free trade zone, and the Free Trade Agreement between the EAEU and Iran have become important incentives for increasing trade turnover and fulfilling existing potential. Econometric calculations show that the conclusion of free trade agreements and preferential trade agreements could lead to a multiple increase in trade turnover between Russia and Iran.