November 23, 2018 - 16:42 AMT
Russia Federation Council ratifies EAEU-Iran FTZ agreement

The Federation Council of Russia - the upper house of the country's parliament, has ratified a temporary agreement on the creation of a free trade zone between the members of the Eurasian Economic Union and Iran.

The agreement, signed during the Astana Economic Forum on May 17, 2018, is designed for three years and provides for the formation of a FTZ on a limited range of goods between the EAEU and Iran.

Under the terms of the agreement, the parties pledge to begin negotiations on a full-fledged free trade agreement no later than a year after its entry into force, RIA Novosti reports.

The implementation of the agreement will contribute to an increase in the volume of trade and the development of economic ties between the parties.

A trade bloc established in 2015, the EAEU was based on the Customs Union of Russia, Kazakhstan, and Belarus. It was later joined by Armenia and Kyrgyzstan. In 2016, Vietnam officially became the first non-regional country to join the bloc. The union is designed to ensure the free movement of goods, services, capital and workers between member countries.