This March 10, 2022 photo shows the Kremlin in Moscow, Russia. (PHOTO / XINHUA)

A free trade zone agreement between Iran, Russia and several countries that cover the vast Eurasian region spreading from the borders of Eastern Europe is possible by the end of the year, Russia's TASS news agency reported on Monday.

Russian Deputy Prime Minister Alexei Overchuk told the state TASS agency in an interview that talks between the Eurasian Economic Union - which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia - and Iran are in their final stages.

"We are moving forward," Overchuk said. "We very much hope that such an agreement can be signed by the end of the year."

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The regional agreement with Iran would replace and expand an interim pact that already provides a reduction in customs duties on hundreds of categories of goods

Both the region and Iran have taken on additional significance for the Kremlin after Western sanctions over Moscow's special military operation in Ukraine limited Russia's foreign trade routes.

Russian-Iranian commodity turnover rose 20 percent in 2022, according to government data.

The regional agreement with Iran would replace and expand an interim pact that already provides a reduction in customs duties on hundreds of categories of goods.

In November 2022, Russia started swapping oil products with Iran and in March. Tehran said it counts on "huge volumes" of both oil and gas swaps with Moscow.

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Overchuk also told TASS, without providing much detail, that negotiations among the Eurasian Economic Union countries on creating a common gas market continue.