Page 24 - IRANRptDec20

Trade between Iran and EEU hits $2.8bn during PTA lifespan
became a rarity after President Donald Trump pulled the US out of the accord in 2018 and reimposed crushing sanctions on the Islamic Republic and introduced secondary sanctions aimed at many foreign investors that continued to do business with the country.
President-elect Joe Biden has pledged to return the US to the nuclear deal, which was brokered by the Obama administration when he was vice president, if Iran returns to full compliance with it in exchange for the US doing the same and thereby lifting the Trump sanctions.
Some $2.8bn of goods were traded between Iran and the Russia-led Eurasian Economic Union (EEU) from late October last year, when a temporary two-year preferential trade agreement (PTA) between the Islamic Republic and the trade bloc was launched, ILNA reported on October 18.
The Trade Promotion Organisation of Iran’s Eurasian Affairs Bureau calculated that trade under the PTA was up 6% y/y. Trade grew despite the impact of US sanctions levied on Iran and the ongoing coronavirus (COVID-19) crisis, it noted. Food and grains remained at the forefront of trade as Iran continued to shore up its reserves.
“Iran’s exports to the bloc reached $823.9mn, while imports from the EEU amounted to $1.97bn, registering 21% and 1% respective year-on-year rises,” the trade promotion unit said.
Iran’s exports to Russia in the examined period reached $263.7mn, showing a 77% y/y increase. Iran also exported $96.41mn of goods to Kazakhstan, $37.71mn to Kyrgyzstan, $25.85mn to Armenia and $11.47mn to Belarus. Major exports from Iran to the bloc included fruit, fruit products and nuts, including tomato paste grapes, cauliflower and pistachios.
EEU exports to Iran mainly came from Russia, at $1.17bn. Kazakhstan accounted for $277.44mn, Belarus $21.21mn, Armenia $1.92mn and Kyrgyzstan $1.32mn.
Barley, corn, sunflower oil, lumber, lamb, paper, iron and steel were among the list of items exported from the bloc to Iran.
5.3​ FDI
Iran FDI 2010 2011 2012 2013 2014 2015 2016 2017
FDI net inflows (BoP) (USD bn)
3.649 4.277 4.662 3.05 2.105 2.05 3.372 5.019
FDI net inflows (% of GDP)
0.749 0.733 0.778 0.653 0.485 0.531 0.805 1.105
FDI net outflows (% of GDP)
0.049 0.044 0.226 0.04 0.001 0.031 0.025
source: World Bank
Five-year residences in Iran offered to foreigners who bring $250,000
I​ran’s Interior Ministry has announced that with a $250,000 investment in the economy a foreigner can be granted a five-year residency, Tasnim News Agency reported on July 31.
Like other regional countries including Turkey and Azerbaijan, Iran is attempting to increase its income from foreign direct investment (FDI), but
24​ IRAN Country Report December 2020 www.intellinews.com