TEHRAN – Iran’s largest carmaker is looking to grow into the Russian market, taking advantage of Western punitive measures on Moscow and as the two countries attempt to enhance their cooperation to alleviate problems created by sanctions placed on Russia by the US and the EU.
Iran Khodro is targeting the Russian market, which is under harsh economic sanctions as a result of the invasion of Ukraine, authorities acknowledged on Sunday.
For the first time in years, the firm announced its intention to sell its products to Russia on the sidelines of a press tour of the company’s plant west of Tehran to commemorate the debut of a new model dubbed Rira.
We pay fundamental attention to the Russian market and are thinking about forming partnerships with Russian investors, Mahdi Khatibi, the company’s CEO, said during a news conference, adding, We have had positive conversations with Moscow. For us, the Russian market will be one of our most significant export destinations. We will begin exporting to Russia this year.
According to Iranian media, the Iranian company previously shipped variants of its automobiles to Russia between 2007 and 2009.
Following the invasion of Ukraine in late February, which prompted numerous Western nations to impose tough economic sanctions on Russia, there has been more reconciliation between Tehran and Moscow in recent months.
Iran, for its part, is subject to US sanctions, which were reimposed following Washington’s unilateral exit from the nuclear accord in 2018.
On July 19, Russian President Vladimir Putin visited Tehran, where he met with his counterpart Ibrahim Raisi and Supreme Leader of the Islamic Republic Ayatollah Ali Khamenei, who urged the two nations to expand long-term collaboration.
In response to a question about whether the sanctions imposed on Moscow make the Russian market a more attractive target for the company, Kianush Pour Mujib, deputy head of Iran Khodro for research and development, stated that the size of the Russian market is greater than all the neighboring countries for us.
He stated that the firm, which now manufactures more than 500,000 automobiles yearly, plans to raise its exports to more than 100,000 annually within three years, up from fewer than 20,000 today.
He believes that Iran Khodro can compete with other producers in areas that are important to us, particularly Russia, Azerbaijan, Iraq, and the Sultanate of Oman.
This comes as Iran, Turkey, and Russia seek new markets in light of the current situation, the ramifications of the conflict on Ukraine, and the resulting Western sanctions.
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