TODAY.AZ / Business

Tehran, Baku determined to boost cooperation

22 December 2015 [16:58] - TODAY.AZ

/By AzerNews/

By Sara Rajabova

Significant improvement is observed in economic and trade relations between Iran and Azerbaijan in recent times.

Iranians have recently shown great interest in developing trade relations with neighboring Azerbaijan in a bid to increase trade turnover between the two countries that was not considered by the officials as sufficient.

The trade turnover between the two countries has fallen by almost 39 percent over the current year, according to the media reports.

Trade turnover between Iran and Azerbaijan surpassed $405.63 million during the first ten months of past Iranian fiscal year (March 21, 2014-January 21), 6.37 percent less compared to the same months of the preceding year.

Iran exported $387.78 million worth of goods to Azerbaijan during the period, which indicated a fall by 5.72 percent year on year. Iran also imported some $17.842 million worth of goods from Azerbaijan during the period, 15.35 percent less than the last fiscal year's first ten months (March 21, 2013 to January 21, 2014).

However, Iran and Azerbaijan have set a goal to increase this figure by four times, up to $2 billion. The two countries are now focused on expanding economic ties in various fields, including industry, agriculture, energy, alternative energy, and transportation.

Mohammad Said Ansari, first deputy chairman of the Iranian Parliament’s Energy Commission said it is necessary for Iran and Azerbaijan to strengthen their economic relations as a means to further approximate the two neighboring and friendly nations.

He told Trend that oil, gas, and energy in general are among the top priorities that should be given attention in bilateral relations.

Another area of cooperation between the two energy-rich countries is the transportation field. Tehran and Baku are participants of the North-South railway corridor.

This route will serve as a bridge to connect the railways of Iran, Azerbaijan and Russia. This project envisages the establishment of a border railway bridge between Iranian Astara and Azerbaijani Astara, as well as laying an 8-kilometer-long segment on Azerbaijani territory.

The railway’s capacity will stand at 1.4 million passengers and 5-7 million metric tons of cargo per year, according to the preliminary estimations. As many as 22 tunnels and 15 bridges will be built throughout the railway.

The volume of cargo transportation through the corridor will amount to 6 million metric tons at the initial stage and will reach 15-20 million metric tons in the future.

The North-South railway project is expected to bring great profits to Azerbaijan and Iran. The railway lines of the two countries will be linked before late 2016.

The construction of Astara-Astara and Rasht-Astara part within the project falls within Iran and Azerbaijan’s responsibility and the two countries are making effort to build the sections.

Earlier, Chairman of Azerbaijan Railways Javid Gurbanov said energy carriers such as oil, gas, and mazut are among the goods that the railway would suitable transfer.

The North-South railway is expected to serve as a bridge to connect the railways of Iran, Azerbaijan and Russia. This project envisages the establishment of a border railway bridge between Iranian Astara and Azerbaijani Astara, as well as laying an 8-kilometer-long segment on Azerbaijani territory.

The railway’s capacity will stand at 1.4 million passengers and 5-7 million metric tons of cargo per year, according to the preliminary estimations. As many as 22 tunnels and 15 bridges will be built throughout the railway.

The volume of cargo transportation through the corridor will amount to 6 million metric tons at the initial stage and will reach 15-20 million metric tons in the future. The North-South railway project is expected to bring great profits to Azerbaijan and Iran. The railway lines of the two countries will be linked before late 2016.

The Islamic Republic is also eyeing Azerbaijan’s transit role in delivering its natural gas to Europe.

Azerbaijan’s transit role is increasing by the day in view of the expected lifting of international sanctions from the Islamic Republic.

The Islamic Republic, with one of the highest energy reserves, 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.

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.

URL: http://www.today.az/news/business/146206.html

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