Leonid Lozhechko, Chairman of Russian-Iranian Business Council: BRICS opens unique opportunities for Iran to expand trade

Leonid Lozhechko is Chairman of the Russian-Iranian Business Council at the Chamber of Commerce and Industry of the Russian Federation. In 2024 at the St. Petersburg Economic Forum he participated in the BRICS+ Roundtable on the North-South International Transport Corridor. Since 2015, Vice President of the International Academy of the Fuel and Energy Complex. He is a member of the Boards of Directors of a number of Russian and Iranian companies.

This year Iran officially became a member of BRICS. What advantages does Tehran gain from joining the association?

Iranian businessmen have a unique opportunity to expand trade operations with BRICS countries. According to the BRICS rules, all members of the association have equal terms of trade. Naturally, the Iranian side sees the prospect of intensive development of its enterprises.

In what areas can Iran achieve the greatest success?

First of all, it is oil and gas exports. Among the BRICS countries, there are powerful economies that consume these energy carriers. In particular, these are China and India. Naturally, trade in these goods will develop. The processing of hydrocarbons will also provide an opportunity to increase Iran's export potential.

What is the current level of business co-operation between Russia and Iran? What areas of co-operation can be highlighted?

Today, trade relations are actively developing, including those involving small and medium-sized businesses. This is facilitated by the support of heads of state and heads of corporations. Co-operation in the energy sector is actively developing. Russian companies are involved in the development of fields in Iran. In addition, companies from the Russian Federation export components for the electric power industry and for the automotive industry, as well as agricultural products. In turn, equipment for metallurgical enterprises flows to Russia in counter-flows. Recently we signed a large contract for the supply of 40,000 cars from Iran.

How do the Iranian authorities support the activities of Russian companies in the country?

The development of trade with Russia is at the centre of attention of the Iranian leadership. They organise forums and exhibitions, presentations of the Iranian market for Russian entrepreneurs. Recently, the Iran Expo 2024 exhibition was held, where the Russian-Iranian Business Council presented more than 150 companies from Russia. The Iranian side provides logistical support and offers various incentives to Russian companies.

What measures is Russia taking to help Iranian business?

In 2021, we passed laws on easing inspections for small and medium-sized businesses. Today, many Iranian companies are working in the Russian raw materials industry, creating new production facilities. The government supports them: it provides favourable loans, land, and tax breaks.

Last December, the EAEU and Iran signed a customs treaty. A zero customs rate is introduced for more than 85 per cent of goods that will move through the territories of the EAEU and Iran.

One of the key areas of sustainable development is green energy. How do you assess co-operation between Russia and Iran in this area?

We have a large joint programme for the development of solar generation. In addition, wind power projects are being implemented on the Caspian Sea coast. The Tehran Convention for the Protection of the Marine Environment of the Caspian Sea was adopted in 2006. Russia and Iran are actively co-operating within the framework of the provisions of this document.

Another sphere of active co-operation between Russia and Iran is culture and tourism. How is co-operation in this area developing?

Last year, the Russian-Iranian Business Council organised a presentation of the tourism potential of the regions of the North Caucasus. In turn, the Iranian side demonstrated the potential of its tourism industry. Now we are considering the prospect of creating direct routes between Tehran and the North Caucasus. To date, more than 2 thousand tourists from Iran have visited Russia. 

For the full version of the interview, please visit the TV BRICS website.

Photo: photo: screenshot of TV BRICS interview