BAKU, Azerbaijan, August 19. Iran and the countries of Central Asia have intensified their economic dialogue in recent weeks, with particular emphasis on trade, transport, energy, and new investment opportunities.
A series of meetings involving government officials and sector-specific agencies has demonstrated Tehran’s and the Central Asian countries’ interest in expanding practical economic cooperation, including increasing trade, developing logistics, and implementing joint industrial and energy projects. Against the backdrop of a changing regional environment, Iran is also placing greater emphasis on diversifying its economic ties and strengthening engagement with neighboring markets.
In August 2026, discussions on expanding cooperation were held with several Central Asian countries. Uzbekistan and Iran conducted political consultations addressing the development of trade, economic, and investment ties, as well as the expansion of transport cooperation. Kazakhstan and Iran discussed closer cooperation in logistics and regional transport routes. Tajikistan and Iran focused on energy, rail freight, and port infrastructure, while Turkmenistan and Iran separately reviewed prospects for trade and economic cooperation.
At the same time, Iran has outlined a broader vision for economic engagement across the Eurasian space. Speaking at an expanded meeting of the Eurasian Intergovernmental Council in Cholpon-Ata, Kyrgyzstan, Iranian Minister of Industry, Mines and Trade Seyyed Mohammad Atabak emphasized the importance of further developing cooperation with the EAEU countries, highlighting the potential for joint projects in trade, transport, energy, industry, and the digital economy.
One of the key factors supporting this momentum has been the free trade agreement between Iran and the Eurasian Economic Union, which entered into force in May 2025. The agreement eliminated tariffs on approximately 87% of goods, creating conditions for further growth in mutual trade.
Atabak described the agreement as an important step in strengthening Iran’s economic relations with EAEU member states. “The free trade agreement between Iran and the EAEU member states has been an important practical outcome of cooperation and has created favorable conditions for the growth of mutual trade,” he said at the meeting, in which Iran participated as an observer.
According to the minister, Iran’s cooperation with the EAEU should extend beyond the trade agreement to encompass joint investment, energy, transport, agriculture, the digital economy, banking, and new technologies. From March 21 through November 21, 2025, Iran’s exports to EAEU countries reached $1.46 billion, representing a 10% increase. In the previous year, exports to the bloc exceeded $2 billion.
Central Asia remains an important avenue for Iran’s efforts to expand its economic ties, while each country in the region is developing its own model of engagement with Tehran. Among these partnerships, Iran’s cooperation with Uzbekistan has emerged as one of the most dynamic. According to Uzbekistan’s Ministry of Investment, Industry and Trade, bilateral trade reached $305 million in the period from January through June 2026, marking a 37.5% year-on-year increase. The two countries are also advancing 29 joint projects and preparing to hold a business forum in Tashkent. Earlier, they set a target of increasing bilateral trade to $2 billion.
Transport links are also supporting closer economic ties. Following the abolition of a mutual $400 fee, the number of Uzbek trucks entering Iran increased by 117% in 2025. Iran is also an important transit route for Uzbekistan. In 2025, around $3.9 billion worth of Uzbek imports and approximately $1.4 billion worth of exports, excluding gold, passed through Iranian territory.
Kazakhstan, meanwhile, sees expanded cooperation with Iran primarily through transport, logistics and agricultural trade. Bilateral trade reached $430.2 million in 2025, up 26.4%. The two countries have set a target of increasing that figure to $3 billion. The development of the International North-South Transport Corridor remains one of the most promising areas. Kazakhstan's freight traffic along the route reached 3.5 million tons in 2025, up 12%, while rail freight between Kazakhstan and Iran increased by 69%.
Iranian Minister of Roads and Urban Development Farzaneh Sadegh said the development of international transport routes remains a priority for Tehran. "Several issues are of major importance for Iran, including attracting investment in the country's northern ports, strengthening freight transport and transit diplomacy, expanding cooperation with regional countries, and developing eastern and western terminals," she said.
According to Sadegh, the Chabahar-Zahedan railway project is playing an important role in this process by strengthening the connection between Iran's southern ports and its national railway network. "The importance of this railway lies in connecting international waters through the port of Chabahar to Zahedan and Iran's national railway network. This means that Central Asian countries, as well as Iran's eastern and western regions, will gain access to international maritime routes through this infrastructure," Sadegh told Trend in an exclusive interview.
The Caspian Sea is another factor supporting regional connectivity. Former Iranian Ambassador to Azerbaijan Mohsen Pakayin said its significance extends well beyond maritime access and is closely linked to trade and transport. "The Caspian Sea is highly important because of its unique geopolitical position for shipping, particularly for countries such as Turkmenistan, Kazakhstan and Azerbaijan, which have no access to international waters other than through the Caspian," he told Trend.
According to Pakayin, the development of transport infrastructure is creating additional opportunities for moving cargo between countries across the region. "The railway connecting Iran's Caspian port to the Rasht railway line links this route to the port of Bandar Abbas. This allows cargo from the Caspian countries to reach Iran's southern port and then continue to other destinations, including Türkiye and Europe," he said.
Energy is another major pillar of Iran's relations with Central Asia. With Tajikistan, Tehran is discussing increased supplies of petroleum products and the establishment of a long-term oil supply framework for Tajik enterprises. Bilateral trade reached $483.9 million in 2025, up 28% from 2024. In the first half of 2026, it stood at $254.3 million, an increase of 14.8% year on year. Iran ranked among Tajikistan's five largest trading partners.
Following talks in Tehran on August 15 with Tajik Minister of Energy and Water Resources Daler Juma and Minister of Transport Azim Ibrohim, Iranian Oil Minister Mohsen Paknejad said the two sides would establish a working group to explore opportunities for cooperation. "The main part of the talks between Iran and Tajikistan focused on the possibility of exporting petroleum products. These efforts are aimed at helping address some of the challenges Tajikistan is currently facing. A working group will be established to examine the issues and conduct expert-level discussions," he said.
The Tajik side has also pointed to the potential for further growth. Tajik Transport Minister Azim Ibrohim said the volume of petroleum product exchanges between the two countries could increase several times once new cooperation mechanisms are put in place.
Turkmenistan remains one of Iran's longest-standing partners. Cooperation between the two countries covers energy, transport, trade and cross-border infrastructure. The countries share a 1,100-kilometer border and maintain institutional dialogue through the Joint Turkmen-Iranian Intergovernmental Commission on Economic Cooperation, which regularly addresses gas, electricity, transport, customs, agriculture and investment. At the commission's latest meeting in Tehran in 2025, the sides discussed the creation of cross-border trade and economic zones.
Energy remains a central area of cooperation. In recent years, Ashgabat and Tehran have expanded cooperation on natural gas supplies, including swap arrangements, while also discussing direct exports and transit through Iran to third-country markets. The two sides are also developing cooperation in electricity transmission and maritime transport. Recent agreements have covered natural gas, customs cooperation, partnerships between the ports of Turkmenbashi and Amirabad, as well as broader intergovernmental cooperation plans.
Transport and logistics are becoming another important area of engagement. Turkmenistan and Iran are working to increase freight flows across their common border, develop road, rail and port links, and expand multimodal routes connecting Central Asia with the Persian Gulf.
From March 21 through December 20–21, 2025, bilateral trade between the countries stood at around $504 million. On August 18, Turkmenistan's Ambassador to Iran Ilyas Gayypov and Iranian Deputy Foreign Minister Mehdi Sobhan discussed prospects for further bilateral cooperation, with particular emphasis on trade and economic ties and strengthening the role of the Joint Intergovernmental Commission.
Kyrgyzstan is also expanding its economic engagement with Iran. Bilateral trade reached nearly $80 million in 2025, up 37%. Kyrgyz exports to Iran almost doubled, rising from $18.3 million to $36.3 million, driven primarily by shipments of dried pulses and cotton. Imports from Iran amounted to around $43.5 million. During recent talks, the sides discussed trade, joint investment, transport, the use of national currencies and financial cooperation.
Iran's economic engagement with Central Asia is gradually taking on a more comprehensive character. Trade is increasingly being complemented by transport corridors, energy projects and investment initiatives. Looking ahead, deeper cooperation could create new opportunities for businesses, expand the number of available trade routes and strengthen economic ties between the two regions. For the global economy, this points to the emergence of additional supply channels, greater diversification of trade flows and a stronger role for Eurasia in shaping new patterns of economic connectivity.
