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EAEU, Iran sign provisional deal to create free trade zone

17 May 2018

The Eurasian Economic Union (EAEU) and Iran signed a provisional free trade agreement in order to increase trade between the countries by facilitating customs regulations, TASS reported. "The agreement covers half of mutual trade", Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan said at the economic forum in Astana, Kazakhstan. "The business hopes that the free trade zone agreement will facilitate interaction between entrepreneurs from the EAEU and Iran, receipt of visas to this country and that the agreement will also promote the transition to settlements in national currencies, because we can not work with the dollar now in view of United States sanctions", Padalko said.

The deal is a demonstration by Moscow and its allies in the region that they do not intend to play along with Washington's efforts to isolate Iran economically.

The U.S. imposed sanctions on Iran's central bank governor and three other individuals Tuesday after President Donald Trump pulled out of an global nuclear agreement with Tehran last week.

Companies around the world face a hard choice as Washington has previously slapped huge fines on firms which bust U.S. sanctions.

Iran and the Eurasian Economic Union - which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russian Federation - signed a provisional pact on May 17 to create a free trade zone, the chair of the board of the EEU Economic Commission said. The terms of the deal were not immediately clear. A free trade agreement between the EEU and Vietnam entered into force in 2016.

EAEU, Iran sign provisional deal to create free trade zone