In May, it granted the United Arab Emirates and Kuwait dialogue partner status in the organization. Know more: Gulf states are also seeking better relations with the SCO. Iran and Russia signed a $1.6 billion railway deal to this end in May. In addition to SCO membership, Iran is working with Russia and India to develop the International North–South Transport Corridor as a rival to the Suez Canal. China and India have also not invested as much in Iran recently as Tehran hoped, Shokri wrote for the Carnegie Endowment for International Peace last November

Deficiencies in Iran’s road and rail networks hurt Iran’s appeal as a transit corridor. In March, China brokered the agreement that resumed relations between Iran and longtime foe Saudi Arabia.įull Iranian membership in the SCO could have symbolic value, but is unlikely to significantly benefit Iran’s ailing economy, according to energy analyst Umud Shokri. Iran’s trade with SCO countries increased 31% to more than $17 billion from March to August of last year, according to the official Islamic Republic News Agency.

Iran is also seeking more trade with SCO member states, as well as better relations in general with Russia and China. Iran’s economy is reeling from the effects of sanctions, government mismanagement, global inflation and more. Iran is still heavily sanctioned by the United States, and talks to return to the nuclear deal have so far failed to yield results. The country is facing significant international isolation, especially after the violent crackdown on protesters starting last September. Why it matters: SCO membership could benefit Iran. Last year, Iran signed a memorandum of obligations to join as a permanent member. Iran’s application to become a full member was accepted in 2021.

Iran become an observer in the SCO back in 2005. The SCO also has several dialogue partners and observer across Asia, including the Middle East. It was founded by Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan in 2001. India will host the July summit, though it will be conducted virtually.īackground: The Shanghai Cooperation Organization is a security and trade cooperation organization for Eurasian states. “From now on, the SCO space, taking into account both new members and dialogue partner states, stretches from Europe and the Middle East to South and Southeast Asia,” said the diplomat.

Lavrov said that “Iran's full membership will be formalized” at the upcoming SCO summit on July 4, according to Russia’s official news agency TASS. Russian Foreign Minister Sergei Lavrov said on Friday that Iran will be admitted to the Shanghai Cooperation Organization (SCO) as a full member next month, further strengthening the Islamic Republic’s ties to China and Russia amid international isolation and sanctions.

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