Iran Strengthens Central Asia Ties to Expand Trade and Transit Role
Iran is working to deepen economic and transport links with Central Asian countries as part of its broader strategy to reduce international isolation and boost regional cooperation. This push fits within Tehran’s long-term “Look East” policy, which focuses on enhancing partnerships across Asia.
Geographically positioned between Central Asia and the Persian Gulf, Iran offers a natural transit route for landlocked countries like Uzbekistan, Kazakhstan, Turkmenistan, and Tajikistan. Despite proximity, current trade volumes remain relatively low—around $1.5 billion. However, Iran has set ambitious goals to increase these figures, aiming for $2 billion in trade with Uzbekistan and $1 billion each with Kazakhstan and Tajikistan, along with a significant boost in commerce with Turkmenistan.
Central Asian states are also seeking more efficient trade corridors and new economic partners. Iran’s experience in areas such as engineering, energy, pharmaceuticals, and agriculture adds value for collaborative projects and infrastructure development.
Iran is becoming a key link in major Eurasian trade corridors, particularly those connecting China to Europe. The growing China–Central Asia–Iran–Türkiye–EU route highlights this strategic role. In addition, the development of Chabahar Port—backed by India and exempt from certain international sanctions—has made Iran even more attractive for regional logistics. Uzbekistan joined the Chabahar Agreement in 2023, and Kazakhstan and Tajikistan are exploring similar involvement.
Multimodal shipments from India to Central Asia via Iran began in 2024–2025, and Kazakhstan is constructing a logistics center at Iran’s Shahid Rajaee Port to support this trade flow.
To support eastward trade, Iran finalized a free trade agreement with the Eurasian Economic Union (EAEU) in May 2025. Meanwhile, China remains Iran’s largest trading partner, with bilateral non-oil trade reaching $34.1 billion last year.
As regional integration accelerates, Iran’s role in connecting Central Asia to global markets is set to grow—particularly as trade corridors across Eurasia become more important for both economic and geopolitical strategies.