Persian Files ISSN 2975-0598 Volume 31 Issue 1
Author: Silvia Boltuc

Executive Summary

The report analyses recent economic and diplomatic activities involving the Orenburg Region of Russia and Iran, focusing on the deepening ties and joint cooperation opportunities. On February 21^st-24^th, 2025, a delegation representing Russia’s Oregon region, headed by Vice-Governor Ignat Petukhov, took part in the international EURASIA EXPO-2025 exhibition in Tehran.

Orenburg, strategically positioned on the Silk Road, has become a key partner for Tehran, especially after the Memorandum of Understanding (MoU) signed between the presidents of Russia and Iran in January 2025. The region is leveraging its economic strengths, particularly in agriculture, energy, and industry.

Discussions were taking place with investors regarding the possibility of opening several enterprises in the Orenburg region for processing agricultural products and developing the fuel and energy sector. Additionally, he mentioned efforts to increase the export of products from Orenburg enterprises.

Background Information

• Orenburg’s Economic Potential: The region is rich in natural resources, ranking among the top regions in Russia for its mineral reserves and agricultural land, which make it a valuable partner for Iran. It is already known as a leader in solar energy and has strong infrastructure for industrial activities. Recent reports highlight Orenburg’s increasing exports and its government’s commitment to bolstering foreign investment by ensuring favourable conditions for foreign business ventures.
• Recent Diplomatic and Trade Engagements: In February 2025, the Orenburg delegation participated in the EURASIA EXPO-2025 exhibition in Tehran, underscoring its intent to deepen business cooperation with Iran, especially in sectors like agriculture and oil. Notably, six large companies from the region participated in negotiations with Iranian businesses. Ignat Petukhov, Vice-Governor and Deputy Chairman of the Government of the Orenburg Region for Economic and Investment Policy, stated that over the past few years, the number of exporters in the Orenburg region had almost doubled. He emphasised that their goal was also to expand into new markets and enhance the presence of local entrepreneurs. He mentioned that a large-scale cooperation program had been planned with Iran’s economic and political sectors, focusing on establishing connections and strengthening relationships. He noted that the Iranian market, with its population of nearly 90 million people, is particularly attractive, especially as the country’s construction and industrial sectors are developing rapidly. He also recalled that in 2024, a delegation from Iran visited the Orenburg region. The delegation from the Islamic Republic of Iran visited the Orenburg Special Economic Zone and Iranian investors got acquainted with the work of the Drilling Equipment Plant in Orenburg. As a result of the visit, it was possible to reach preliminary agreements on cooperation, including on the supply of equipment manufactured by enterprises of the Orenburg region to Iran. Sergey Ivanovich Grachev, the Chairman of the Orenburg Regional Parliament of Russia, stated that the delegation had met with several business delegations in Isfahan and planned to visit other provinces in Iran. He explained Isfahan was chosen as the first destination because of its similarities with Orenburg in terms of industry, highlighting the strong connections between the steel industries of both regions and expressing interest in cooperation in machinery, technology, and agriculture. Grachev further emphasised that learning from Isfahan’s experiences was valuable and that future meetings could help maintain and strengthen the relationship. The Russian representative also announced plans for a major exhibition in the oil and gas field and invited Iranian business executives. At the end of the meeting, representatives from Orenburg, Russia, and the Isfahan Governorate signed a joint memorandum of understanding for bilateral cooperation.
• Orenburg – Isfahan’s Cooperation: Mehdi Jamalinejad, governor general of Isfahan province, noted that Isfahan had historically been part of the Silk Road and had engaged in extensive economic exchanges. Emphasising the province’s economic potential, he highlighted the strong presence of private companies, some of which were among the leading exporters. He also stressed that in Iran, the private sector played a crucial role alongside the government, particularly in interactions with Russia, and encouraged Russian participation in domestic exhibitions.
• Cultural Diplomacy: One notable diplomatic gesture was the presentation of a traditional Orenburg downy shawl, a symbol of the cultural heritage of the region, to the President of Iran. This event highlights the use of cultural diplomacy alongside economic discussions to strengthen bilateral ties. The Russian representatives also emphasised that Orenburg is a culturally diverse province, home to many ethnic groups, with Muslims comprising 20% of its population. They highlighted its 2,000-year-old historical ties with the Middle East and its strategic geographical position as a gateway to Central Asia. During the 18^th and 19^th centuries, Orenburg played a key role in fostering strong relations with neighbouring ethnic communities. One of Russia’s most important caravanserais is located in the province.

Geopolitical Scenario

Orenburg, located in the Russian Federation, serves as a bridge between Europe, Central Asia and China. Its economic, industrial, and agricultural capacities are becoming increasingly crucial in Russia’s efforts to expand its business in Central Asia and the Middle East. The region’s abundant natural resources and its significance as a transit hub for key international trade routes have contributed to its attractiveness as a partner for countries like Iran.

Russia’s broader strategy is to counterbalance Western economic sanctions and expand trade ties with non-Western countries, particularly in energy and industrial sectors. Iran, similarly, is keen to forge strong economic ties with countries that can help it circumvent sanctions, particularly in energy and technology. This shared interest in economic cooperation further solidifies the Orenburg-Iran partnership, both bilaterally and within the broader context of regional geopolitics.

Sergey Ivanovich Grachev acknowledged that despite the current sanctions, Iran has made significant developmental progress. He mentioned Russia had recently begun facing sanctions and expressed eagerness to learn from Iran’s experiences, particularly its ability to thrive despite these sanctions.

 Conclusions

The growing ties between the Orenburg region and Iran offer significant strategic and economic opportunities for both parties. Orenburg’s wealth of natural resources, strategic location, and advanced infrastructure makes it an attractive partner for Tehran, as it seeks to expand its industrial base and bypass international sanctions. The ongoing diplomatic exchanges, particularly through trade exhibitions, meetings, and agreements, lay a strong foundation for increased cooperation in critical sectors like energy, agriculture, and technology. Moreover, cultural diplomacy, through gestures like the downy shawl presentation, adds a personal and symbolic layer to the relationship, enhancing trust and goodwill between the two regions.

The geopolitical context surrounding these engagements suggests that both Russia and Iran are capitalising on the opportunities created by their shared economic challenges and regional aspirations. Moscow had recently begun facing sanctions and expressed eagerness to learn from Iran’s experiences. As Tehran seeks to diversify its international partnerships, the Orenburg-Iran cooperation is likely to become a model for further economic cooperation between Iran and other Eurasian countries. As President Pezeshkian noted, Iran is keen to enhance economic ties with the Eurasian Economic Union.