BAKU, Azerbaijan, October 9. There is a clear perspective on economic relations between Iran and Azerbaijan, Iran's Minister of Roads and Urban Development and Co-Chairman of the Iran-Azerbaijan Joint Economic Commission Mehrdad Bazrpash told TurkicWorld in an exclusive interview.
New bridge over Astarachay river to be commissioned soon
In the coming two months, a newly constructed bridge spanning the Astarachay River is set to become operational. This bridge is poised to open up fresh avenues for trade and the seamless transit of goods between the two nations. The construction of the Astarachay River bridge has already been successfully completed. Presently, customs facilities are being established on both the Iranian and Azerbaijani sides. The initial plan is to inaugurate the bridge for temporary use, with the intention of transitioning to permanent operations thereafter.
Importance of the North-South International Corridor for Azerbaijan-Iran relations
Iran shares a 700-kilometer-long border with Azerbaijan. The geographical positioning of both Iran and Azerbaijan within the North-South International Corridor has paved the way for strong economic ties between the two nations. During my visit to Azerbaijan, a prominent topic of discussion revolved around enhancing the North-South and East-West corridors, as these routes play a pivotal role in bolstering economic relations between the two countries. These corridors hold the potential to significantly contribute to the economic growth and development of both countries.
Iran, Azerbaijan and Russia signed the declaration on the development of the North-South International Transport corridor in Baku on September 9, 2022, which aims to enhance the efficiency and capacity of the corridor in all aspects (road, rail, sea). The declaration is expected to be ratified at a higher level in the near future.
Development of trilateral cooperation between Iran, Azerbaijan and Russia
The primary emphasis lies in fostering trilateral collaboration among Iran, Azerbaijan, and Russia. Meetings are scheduled to take place to advance this cooperation. Among the joint initiatives involving these regional nations is the synchronization of their electricity grids. Several strides have already been made in this endeavor, paving the way for future electricity exchanges among the three countries.
Joint shipping company may be created between Iran and Azerbaijan
The Iranian side proposed to establish a joint shipping company with Azerbaijan during a meeting with Rashad Nabiyev, Azerbaijan’s Minister of Digital Development and Transport. The Azerbaijani side welcomed this proposal and said that they will coordinate with their shipping companies. The ports of both countries have great opportunities and have been improved by investments in recent years. There are facilities for mechanical loading and unloading of cargo. Iran has set the development of its ports as one of its main future goals. The joint shipping company will enable the two countries to use their maritime potential more effectively.
Cooperation on building hydroelectric junctions
Cooperation between the two countries for the construction of hydroelectric facilities is currently underway. Among these projects is the impending filling of the Khudafarin hydrojunction with water. Additionally, progress on the Giz Galasi hydrojunction is nearly complete, with construction work expected to wrap up in the next three months. However, there are environmental concerns surrounding the Ordubad hydrojunction, which both countries are actively working to address.
Prospects for trade relations development
One strategy to promote economic development in both nations is the implementation of discounts through preferential trade. A joint decision has been made to facilitate trade in goods that are commonly used in both countries, with a list of specific products and corresponding discounts in the planning stage. The announcement of this preferential trade agreement is expected to come from the relevant authorities in both countries within the next two months.
Furthermore, another economic aspect in the Iran-Azerbaijan relationship involves the expansion of air travel. Given the considerable potential of both nations, there is a concerted effort to increase the number of flights, particularly to facilitate travel for business professionals, students, and citizens. This aims to create easier and more accessible travel options between the two countries.
There is a promising outlook for economic relations between Iran and Azerbaijan. The ongoing misunderstandings between the two countries will soon be resolved, leading to a higher level of trade than in the past.
