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Russia plans ‘green corridors’ for Iran

Russian Agriculture Minister Alexander Tkachev (L) gets a treat of nuts from his Iranian counterpart Mahmoud Hojjati (R) in Tehran in January.

Russia says it is establishing “green corridors” on its Caspian coasts to receive agricultural products from Iran.

The ports of Makhachkala and Astrakhan are geared up for the purpose as Russia is pushing through its efforts to find new sources of food supplies amid spat with the West and Turkey.

Russian Deputy Agriculture Minister Sergei Levin made the announcement during a joint tour of the Russian Republic of Dagestan with Iranian Agriculture Minister Mahmoud Hojjati on Tuesday.

Levin said the green corridor would "significantly" reduce the delivery times of Iranian products, increase volumes and legalize current deliveries, the Sputnik news agency reported.

Head of Dagestan Ramazan Abdullatipov suggested that a huge logistics center would also be set up to distribute imported products to other Russian regions.

"The idea of creating green corridors for Iranian products is a very good initiative. We fully support it and are ready to contribute to fulfilling this project,” he said

“Our port in Makhachkala is the only ice-free port ready to accept any volumes of goods," he added.

Russia and Iran have moved to deepen economic ties since the lifting of sanctions on Tehran in January. Despite close political relations, their economic relationship never flourished because Russian firms mostly avoided Iran due to the risk of sanctions.

Agriculture has burst onto the stage as one of the key areas of cooperation amid Russia’s quest to replace the West and Turkey with new food supply sources.

The two countries are currently trading in meat and dairy products but the volumes are not significant yet.  

Russian Agriculture Minister Alexander Tkachev visited Iran in January in an attempt to boost trade ties in the farming sector.

Investment in agriculture 

Iran has the potential to provide agricultural goods to the Russian market and the lifting of sanctions is viewed as a boon to Iran’s agriculture, allowing investment to boost exports.

The country is home to a variety of fruit cultivars, including walnuts, figs, apples, apricots, pomegranates, muskmelons, limes, and grapes which have originated in Iran.

A number of foreign delegations have rushed to Iran to cash in on the promises of a big market which is opening to international business. So far, French have shown the biggest interest in investing in Iran's agribusiness.

Strategic products such as wheat, sugar cane and fruits are billed as the foremost areas for investment. According to state officials, up to $600 million is invested in the southwestern Khuzestan province for the purpose.

Iran is drifting away from an oil-centered economy greatly prone to spasmodic market volatility and turmoil. Agriculture, tourism and mining are seen as crucial to the country's bid to wean itself off oil revenues.


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