May 22, 2022

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War to Halt Iran-Ukraine Trade

War to Halt Iran-Ukraine Trade
War to Halt Iran-Ukraine Trade

A member of board of directors of Iran-Ukraine Joint Chamber of Commerce says in case war breaks out in Ukraine, the trade between Iran and Ukraine will come to a halt.

TEHRAN (Iran News) –  A member of board of directors of Iran-Ukraine Joint Chamber of Commerce says in case war breaks out in Ukraine, the trade between Iran and Ukraine will come to a halt.

Speaking to ILNA, Seyed Reza Noorani said that many Iranian companies have received big plots of land in Ukraine and they are busy in production of wheat and grains.

Talking about the latest trade condition between Iran and Ukraine and possible war in Ukraine, Noorani said that Ukraine is not a major destination for Iran’s agro product exports and in case war breaks out in Ukraine, like any other war-hit countries the exports and trade will halt until the war ends.

He said he believes that Russia-Ukraine war will be political than economic and if the war breaks out it will not last too long. He added that therefore due to the political nature of the war and due to its likely short period, there will have no major impact on Iran-Ukraine trade in the long term.

Noorani went on to say that before anything happens in Ukraine, the price of oil has soared and it has affected the final cost of the products and in case war starts, the first pressure of the final cost will be on the transportation cost which will be multiplied due to the unsafe roads in the war-hit areas and the cost of transportation with ship will also increase because of the rise in the fuel price.

He reiterated that if war happens, Iran’s trade with Russia will also be overshadowed although the trade exchange with other Eurasian Union states may continue as before.

Noorani went on to say that one of the important developments in trade between Iran and Ukraine in recent years has been the start of extraterrestrial farming of Iranians in Ukraine, adding that many big Iranian companies in Ukraine have received large plots of land for farming and production of wheat and grains, adding that Ukraine has considerable amount of chernozem and fertile lands, and in farming the amount of consumed fertilizer is low and products are organic.

He stated that there is also good cooperation in industrial sector between Iran and Ukraine and there is joint chamber of commerce both in Iran and Ukraine and the economic connection of the two countries via the chambers can increase, expressing hope that the domestic policies would be in a way that promoting exports would play the first role.

This year Iran’s imports from Ukraine have been around $111.7m while exports have been only $48m. The trade volume is around $160.3m which shows 76% growth comparing to last year.

Original News : https://irannewsdaily.com/2022/02/war-to-halt-iran-ukraine-trade/

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