Iran's trade with BRICS spikes by 14% amidst economic sanctions by West

Iran's Foreign Minister Hossein Amir-Abdollahian during his address at the 'Friends' of BRICS which was held on the sidelines of the Foreign Minister's Meeting (FMM) held in Cape Town, South Africa on Friday highlighted the growth in trade between BRICS and Tehran as it floated its desire to be a member of the economic block. 

“Our bilateral political and economic relations with the BRICS countries remain at a very good level while our trade value exceeds $30 billion,” Amir-Abdollahian said, noting that the sides have important arrangements on multilateral cooperation. We will soon expand our relations with three BRICS countries; namely Russia, China, and India within the framework of the Shanghai Cooperation Organization,” he added. In June 2022, Iran applied to become a BRICS member, saying it “would result in added value for both sides.”

Customs data shows that trade in goods other than crude oil between Iran and the bloc’s members totaled nearly 48 million tons in the fiscal year 2022-2023, representing a 14% increase in terms of value.

BRICS member states continue to be top trading partners of Iran

Tehran applied to join the BRICS in June 2022, claiming that doing so "would result in added value for both sides." Trade-in items other than crude oil between Iran and the members of the bloc reached close to 48 million tonnes in the fiscal year 2022–2023, a rise in the value of 14%, as per customs data. 

China continues to be Iran's top BRICS trading partner, with trade increasing by 37.41% throughout that time. Russia is in third place (up 3.59%), followed by India in second place with commerce up over 47%. Both the weight and value of trade with Brazil have decreased. With a 23% increase in bilateral trade, South Africa is Iran's major trading partner on the continent of Africa.

In the midst of sanctions imposed by the West, Russia and Iran have been fostering closer ties. According to official figures, the value of the trade in goods and services between the two nations in 2022 was $4.6 billion. As they work to de-dollarize their economies, Moscow and Tehran have also agreed to increase the use of their respective national currencies in payments.

Brazil, Russia, India, China, and South Africa make up the present members of BRICS, which is considering enlarging its membership as more nations show interest. The bloc came in 2001 as BRIC with South Africa joining in 2010. It comprises 41 per cent of the world population, having 24 per cent of the world GDP and over 16 per cent share in the world trade as per World Bank data.