Baku, Tehran can develop trade ties after sanctions removed
By Aynur Karimova
The removal of international sanctions against Iran over its nuclear energy program is believed to lead to strengthening of trade ties between Tehran and Baku.
Mohsen Pak-Ayeen, Iran’s ambassador to Azerbaijan stated that the two countries are capable of creating proper chances in the three sectors, namely trade, transit and energy.
He told Trend on January 18 that Iran sees Azerbaijan can play an important role in linking Iran to the markets of the CIS, as well as Caucasus and Central Asia.
Pak-Ayeen believes that the removal of sanctions has created a chance for Iran to play an important role in the region.
"In the meantime considering Iran’s geographical location, the Islamic Republic and neighboring counties can cooperate in the development of goods transport, oil swap and also connecting to international electricity networks," he added.
Pak-Ayeen noted that the most important area for joint investment between Iran and Azerbaijan is the oil fields of the Caspian Sea.
While Iran holds 10 percent share in Azerbaijan's giant Shah Deniz offshore gas field, Tehran and Baku swap about 1 million cubic meter of gas per day and exchange power, as well.
Iran capable to join TANAP
Azerbaijan’s transit role has acquired actuality in view of the lifting of international sanctions imposed against the Islamic Republic.
Pak-Ayeen believes that after the removal of sanctions, Tehran can join major regional projects such as Trans-Adriatic Pipeline.
Iran, with one of the highest energy reserves in the world, has long been eying to supply its hydrocarbon resources to Europe.
As the country does not possess a direct transit route and the necessary infrastructure to reach the European market, Azerbaijan, which has built the required infrastructure over the years, is the best transit option in this regard.
Pak-Ayeen also told journalists that Iran can use Azerbaijan's investment in transit projects including both roads and marine.
"Iran is ready to use Azerbaijani investors' contributions for building hotels, while in the power sector we can jointly invest as well," he said. "Both Iran and Azerbaijan are interested in decreasing their reliance on oil revenues and to achieve that, they can strengthen transport, agricultural sectors and trade."
The ambassador also voiced an offer to expand trade of agricultural products and export of such goods to third countries.
Azerbaijan and Iran have shared diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic ties between the two countries were reestablished in 1992.
The two countries are focusing on expanding economic ties in various fields, including industry, agriculture, energy, alternative energy, and transportation.
Currently, 480 companies with Iranian capital operate in Azerbaijan, and the volume of Iranian investments in the country is around $760 million.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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