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Iran and Azerbaijan Raising Economy

“Iran and Azerbaijan have great potential for cooperation in energy, transport and trade areas. Using the current potential for their economic development, both countries can realize joint programs that will help them get access to foreign markets, including European one,” head of the secretariat of the Iran-Azerbaijan intergovernmental commission Mehdi Mohtashami has told AZERTAC.

during first half of 2015 , Iran exportation to Georgia decreased by 55.36 percent to $42.52 million year-to-year meanwhile , Azerbaijan’s export to Iran also decreased 67.11 percent to $11.16 million during the mentioned period, according to the Azerbaijani State Statistics Committee.

Iran has asked the government and the Central Bank of Azerbaijan (CBA) to return the assets of Iranian entities remaining stagnant in Azerbaijan on the accounts of Azerbaijan.the value of block asset is 120 million dollors announced by Mohtashami.

Currently, trade turnover between Azerbaijan and Iran is $500 million.

Mahmoud Vaezi, Iran’s information and communications technology minister, at a meeting with the members of the Azerbaijan-Iran Intergovernmental Commission on Economic, Trade and Humanitarian Cooperation, stated that relations between Azerbaijan and Iran will continue to develop at a rapid pace.

Iran and Azerbaijan agreed on establishment of a working group to analyze the North-South railway project, which will connect the railways of Iran, Azerbaijan and Russia. The railway is planned to have a capacity of 1.4 million passengers and 7 million tons of cargo a year.

He highlighted the importance of developing relations between the two countries in the banking sector and expressed hope for a speedy development of relations in the customs, energy, petrochemical, oil and gas ,transportation of freight and passengers  and especially linking the railway sectors.

Azerbaijan further offered Iran to use its infrastructure to export oil and gas to world markets.

“Iran can use Azerbaijan’s infrastructure, especially the Baku-Tbilisi-Ceyhan pipeline to export its oil,” Mustafayev said at a meeting with Iran’s Oil Minister Bijan Namdar Zanganeh, Trend reported.

He added that Iran could in the future join the Trans Anatolian Natural Gas Pipeline (TANAP) project.

Experts believe that Azerbaijan can play a significant role in the export of Iranian energy resources to European markets during the post-sanctions period.

Iran is eager to sell its gas in European markets once sanctions are removed. Since the country does not possess a direct supply route to Europe, the Azerbaijan-initiated TANAP project – part of Sothern Gas Corridor aimed at providing Europe with natural gas – could be a simple and profitable option for its European exports.

The two nations who have lived side by side over centuries have a long history of close relations. A large number of Iranians live in Azerbaijan and about 30 million ethnic Azerbaijanis live in Iran. These are the grounds for which to pursue and strengthen bilateral relations between the two countries.

 

By Shiva Parizad
Reporter
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