As nuclear talks with the United States remain stalled and sanctions continue to choke its economy, Iran is intensifying its eastward pivot by leveraging its full membership in the Shanghai Cooperation Organization (SCO) to deepen economic and strategic ties across Central and South Asia, according to an analysis by Al-Monitor
Central Bank of Iran Governor Mohammad Reza Farzin this week proposed the creation of a joint SCO bank during a central bankers’ summit in Beijing. He said the initiative would reduce reliance on Western institutions like the IMF and World Bank and foster a multilateral financial platform among Eastern states.
Since joining the SCO in July 2023, Iran has pursued trade, infrastructure, and defense partnerships with members such as China, Russia, and India, positioning itself as a regional hub.
Tehran implemented a free trade deal with the Russia-led Eurasian Economic Union in May, aiming to boost trade to $12 billion and reinforce its role in transport corridors like the North-South Transport Corridor.
“Iran has always identified as a West Asia country looking with interest to Central Asia,” Roberto Neccia, an independent Iran analyst, told Al-Monitor.
“If nuclear talks with the United States fail to produce a comprehensive agreement, “Iran will increase its projection to the region, fully exploiting its potential,” said Neccia.
Geneva-based strategic adviser Torek Farhadi said, “Central Asian states are landlocked, and from a geo-economic standpoint, Iran offers them access to the Persian Gulf.”“There is no real substitute for sanctions relief — the talks remain vital.”
