Iran and Armenia have signed a barter trade deal after opening a large Iranian trade center in the Armenian capital Yerevan.
The deal was signed on Tuesday in a ceremony in Yerevan in the presence of Iranian Minister of Industry, Mine and Trade Mohammad Atabak and Armenian Economy Minister Gevorg Papoyan.
Under the deal, the two countries will appoint companies after three months from the signing of the agreement to start to implement it.
Iran views barter agreements as a major tool to avoid US sanctions that restrict its access to international trade.
The signing of the deal came after Iran opened its trade center in Yerevan. The center, built over an area of 18,000-square meters, has 107 booths and stalls that sell Iranian-made consumer goods, chemicals and other industrial products. Armenian businesses have also a share in the retail and wholesale facility.
Iranian ambassador in Yerevan Mehdi Sobhani described the facility as the “largest Iranian trade center in the world”, saying it will lead to a major increase in trade ties between Iran and Armenia.
Iran and Armenia seek to increase the value of their trade ties to $3 billion per year. Iran also views Armenia as a gateway to trade with members of the Eurasian Economic Union (EAEU).
Iran and the EAEU, which includes Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia, are currently in a preferential trade arrangement but they will enforce a free trade deal signed in December last year once parliaments of the two sides ratify the agreement.