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Baku, Tehran committed to broaden economic cooperation

31 July 2015 11:27 (UTC+04:00)
Baku, Tehran committed to broaden economic cooperation

By Sara Rajabova

Iranian President Hassan Rouhani’s government has named the development of ties with the neighboring countries as one of his priority issues.

Moving in line with this policy, Tehran has significantly expanded relations with its historic neighbor Baku.

The nuclear deal and the lifting of international sanctions promise to open new opportunities for deepening economic cooperation between the two countries.

Experts believe that Azerbaijan can play a significant role in the export of Iranian energy resources to the European market 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.

Earlier, Iranian Deputy Foreign Minister Abbas Araqchi said a new chapter will be opened in Iran’s ties with neighboring countries, particularly with Azerbaijan in the post-sanctions period.

Araqchi said due to its unique transit potential located between Iran and Europe, Baku would have an important place in Iran’s future cooperation with the EU.

In the background of the recent positive developments, Baku and Tehran take measures to further broaden economic relations.

Mohsen Pak Ayeen, Iranian ambassador to Baku has recently stated than an Azerbaijani economic delegation, headed by, Azerbaijani Economic Development Minister Shahin Mustafayev, will travel to Iran on August 3.

He told Trend that the delegation will include both government and private sector officials.

The visit will take place at the invitation of Iran’s Minister of Communications and Information Technology, Mahmoud Vaezi.

Pak Ayeen added that representatives of energy, transport, telecommunications, banking, and oil companies will accompany Mustafayev during his Tehran visit.

In a meeting between Pak Ayeen and Mustafayev in Baku, the Azerbaijani minister said his visit to Tehran will pave the way for holding the 10th joint economic committee meeting in the second half of the current year.

The Iranian ambassador, for his part, said Iran pays special importance to countries that stood by the Iranian nation during the unjust sanctions.

“Presidents of the two countries met several times over the past two years. Iran wants friendly ties with all regional countries. We hope that relations between Tehran and Baku will increase in this line,” he said.


Referring to the nuclear deal between Iran and the P5+1, Mustafayev appreciated it as an important measure toward regional stability and security, noting that Baku has never participated in anti-Iran sanctions and has always backed Iran’s peaceful nuclear program.

The lifting of sanctions will also affect the development of commercial relations between Azerbaijan and Iran, particularly in the border regions. Also, the operations of Azerbaijani companies could expand in Iran should the Iranian economy continue to liberalize.

Iranian officials have repeatedly called on Azerbaijani businessmen to make investments in various sectors of economy in the Islamic Republic.

Azerbaijan was the 12th leading importer of Iranian non-oil goods in the previous Iranian calendar year, which ended on March 20, 2015, according to the Iran Customs Administration.

Iran exported $435.34 million of non-oil goods to Azerbaijan and imported $22.22 million of non-oil goods from the country.

Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991 and diplomatic relations between the two countries were reestablished in 1992.

Currently, the two countries are focused on expanding their economic ties in various fields, including industry, agriculture, energy, alternative energy, and transportation.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

Follow us on Twitter @AzerNewsAz

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