Azernews.Az

TEHRAN – Iran and Armenia have agreed to build a pipeline to carry Iranian oil products to the neighboring country.

The agreement was reached between Iranian Oil Minister Massoud Mirkazemi and Armenian Energy Minister Armen Movsisyan in Tehran on Saturday.

A timeframe has yet to be set on the pipeline to be laid from the northwestern city of Tabriz to the Armenian border.

Mirkazemi said the price and volume of the exports of oil products will be agreed in the near future, but noted that the pipeline will allow Armenia to meet half of its demand for oil derivatives.

He termed cheaper energy prices in the Persian Gulf in comparison to the Mediterranean region and the safety of transit as advantages of the deal for Armenia.

The Armenian energy minister also held a meeting with the newly appointed Iranian Foreign Minister Ali Akbar Salehi during his visit to Tehran. The parties discussed the construction of a railway connecting the two countries.

The Iranian and Armenian leaders signed an agreement in April 2009 on building the railway line. The railway will be 470 km long, of which 60 km will lie in Iran and 410 km in Armenia. The five-year project is initially estimated at $1-1.2 billion.

Armenia remains sidelined from regional projects due to its occupying Azerbaijani territory and only has a railway link with Georgia.