Iran Secures Long-Term Wheat Deals with Russia and Kazakhstan

Iran has secured a long-term wheat supply deal with Russia and Kazakhstan to boost its flour exports, particularly to neighboring Iraq. Under the agreement, Iran will import up to 1 million tons of wheat annually over the next five years from both countries.

Russia expects to export 1.5 million tons of wheat to Iran per year, while Iran aims to increase flour exports to Iraq and Afghanistan. The imported wheat will be used exclusively for producing flour for export, in line with Iran's existing ban on wheat imports for domestic consumption.

The agreement is expected to help Iranian flour mills operate at full capacity, currently running at only 50% of their production capacity. Russian wheat exports are also set to gain an additional market through the deal, particularly as the country has been expanding its export destinations by offering competitive prices and strengthening its presence in Middle Eastern markets.