This is one of the results of the eurasian Union`s painstaking work in signing free trade agreements with the countries concerned. Such agreements strengthen EAEU`s positions in the regional and global economy and promote market expansion for economies. However, the signing of such documents is not the objective of the EAEU as such. The fact is that they offer mutual benefits. The eurasian Commission`s gradual experience allows it to clarify the interests of its Member States and to neutralise risks to domestic producers when signing preferential trade agreements. This practice continues. Since 1997, the EU`s political and economic relations with Russia have been based on a bilateral Partnership and Cooperation Agreement (APC). The trade components of the agreement aim to promote trade and investment and to establish mutually beneficial economic relations between the EU and Russia. Since 2014, the illegal annexation of Crimea and the conflict in eastern Ukraine have seriously undermined bilateral political dialogue. As a result, some of the political dialogues and cooperation mechanisms, including in the trade field, have been suspended. A third factor affecting trade relations with Russia is that of political measures to limit trade, i.e. sanctions.
In July 2014, in response to Russia`s responsibility for the events in Ukraine, the EU adopted economic sanctions against Russia, which target four sectors: access to finance, weapons, dual-use goods and specific oil extraction and exploration technologies. For more information on these measures, click here. The second agreement was signed with Iran in May 2018 and came into force on October 27, 2019. This is a limited three-year agreement. One year after it comes into force, the parties will begin discussions on a comprehensive free trade agreement. The agreement is limited due to a low level of liberalization. The reduced tariffs cover only 50% of the total volume of trade between the two countries. As far as products are concerned, this means 502 SH codes for the UNION and 360 SH codes for Iran. The agreement takes due account of the experience gained in working on documents already signed and also covers potential business risks.