Azerbaijan’s transport infrastructure, Iran’s export potential make cooperation more alluring
By Gulgiz Dadashova
The growing cooperation between Iran and Azerbaijan has created ample capacities for further development of the regional economic interaction, as the latter may play a crucial transit role in the Islamic Republic's export-import operations with Europe.
Warm relations between the two countries are regarded as strategic, offering good prospects for cooperation, especially in economic field.
The relations enable Iran with its rich export potential of goods and energy resources to reach Europe through Azerbaijan, which has positioned itself as the trusty and reliable partner.
Huge oil and gas reserves rank Iran first in the world for natural gas reserves. As oil and gas revenues occupy a key place in the Iranian economy, Tehran needs reliable partners that can act as the mediator between West and Iran. The country is keen to recover its sanction-hit-economy and expand its trade and economic ties with outside world.
Europe, with growing energy demand, is quite an alluring market for Iran. Prior to the imposition of sanctions, Iran was considered as one of the main alternative suppliers of gas to Europe. Amid recovering ties between Europe and Iran, Azerbaijan, which already acts as the leading chain in ensuring Europe’s energy security, can link the two sides.
Azerbaijan, being the initiator of "Southern Gas Corridor" through which the Shah Deniz gas will reach Europe, also works towards ensuring more gas supplies to Europe from new sources and Iran, with proven natural gas reserves at 33.8 trillion cubic meters—or 18.2 percent of the world’s total proven reserves, can be one of these sources.
Indeed, Iran intends to benefit from Azerbaijan’s territory as a transit route for the export and import operations with Europe.
Head of the Iranian Presidential Administration Mohammad
Nahavandian said Iran and Azerbaijan need to provide mutual
benefits in export and import operations, on customs tariffs and in
cargo transportations that will lead to trade facilitation.
Poland has already announced its desire to transport its products
to Iran through Azerbaijan. “Poland considers Azerbaijan not only
as its potential partner for cooperation in the agricultural
sector, but also as a transit country for sale of agricultural
products to Iran,” Polish Agriculture and Rural Development
Minister Marek Sawicki said recently.
Azerbaijan could play a role of bridge for Iran's agricultural exports to Russia as well.
The Islamic republic has repeatedly announced its intention to replace Europe in Russian market following Moscow's ban on food import from the European Union, United States, Norway, Canada and Australia.
Iranian Minister of Agricultural Jihad Mahmoud Hojjati said that Iran and Azerbaijan through cooperation can pave the way for export of Iran's agricultural products to Russia. Baku in turn welcomed the desire.
Given the enormous potential the neighbor countries possess one can assume that smart cooperation between Azerbaijan, with excellent infrastructure capacities, and Iran, with huge amount of resources and export opportunities, could bring benefits not only the two sides but also others to be involved.
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