Azernews.Az

By Leman Mammadova

Azerbaijan and Iran share common religion, history and traditions that bound them. The two countries are eager to develop their non-oil economy, integrate regional transport networks and boost mutually advantageous business projects. Such spheres as agriculture, banking sector, pharmaceutics, as well as cooperation within the international North-South transport corridor are the main areas that the two states are focused on.

Azerbaijani and Iranian investors are interested in cooperation in joint projects, Iranian Ambassador to Azerbaijan Javad Jahangirzadeh told Trend.

He said Iranian businessmen are interested in entering the Russian market and other post-Soviet countries via Azerbaijan, because there are no customs duties between the CIS countries or they are insignificant.

"Iran is interested in cooperation with Azerbaijani entrepreneurs working in Russia," said Jahangirzadeh.

The ambassador also noted that trade between Iran and Azerbaijan may grow in the future.

"We must work to ensure that relations between the countries develop even more in 2019," he said. "We have joint investment projects and progress in achieving our goals."

Commenting on the construction of a railway as part of the International North-South Transport Project, the Iranian ambassador noted that the work in this direction is progressing in a positive way.

"Iran's Astara Terminal is presently operating," the ambassador said. "However, it will take 1.5-2 years for the full functioning of the terminal."

Iran sees Azerbaijan as a hub to reach larger regional markets. The cooperation on transportation between Iran and Russia through Azerbaijan is crucial in the realization of the International North-South Transport Corridor project.

Last year, Azerbaijan, Iran and Russia lowered the tariffs by 50 percent for the activation of cargo transportation via the North-South international transport corridor. In 2017, the increase in cargo transportation through the territory of Azerbaijan between Russia and Iran was 68 percent.

The North-South transport corridor was established in 2000 within the Intergovernmental Agreement between Russia, Iran and India. The main purpose of the agreement is to increase the efficiency of transport communications in the organization of freight and passenger transportation. The project envisages connecting India with the Middle East and the Caucasus, Central Asia and Europe. The purpose of the corridor is to reduce the delivery time to three weeks from India to Russia, as well as to North and Western Europe as the current route takes more than six weeks.

In the framework of the North-South transport corridor, Azerbaijan, Iran and Russia signed an agreement in 2005 on the construction of 375 km long Astara-Resht-Qazvin railway. It envisages the construction of a new railway line in Iran, which will connect Astara, Azerbaijan to the Iranian cities of Astara, Rasht and Qazvin as well as the reconstruction of an existing railway in Azerbaijan.

The railway between Astara regions of Azerbaijan and Iran has been already completed. Qazvin-Rasht part of railway has been launched in November. The construction of the Rasht-Astara railway will be completed in two years.

The expected volume of cargo on the corridor passing through the territory of Azerbaijan is 3 million tons at the first, 5-8 million tons at the second and 15 million tons at the third stage.

Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic relations between the two countries were established in 1992. The Azerbaijani-Iranian relations have developed and reached a new stage over the past 4 years as a result of mutual efforts.

Azerbaijan’s trade turnover with Iran amounted to $395.1 million in January-November 2018, according to the Azerbaijani State Customs Committee.

Iran's investment in Azerbaijan reached $ 3.1 billion. There are more than 700 companies with Iranian investments in various sectors in Azerbaijan. The functioning of the Intergovernmental Joint Commission gives a special impetus to the development of relations.

The number of tourists coming from Iran to Azerbaijan has significantly increased over the past period. In 2017 this figure was 363,000, in 2016 - 247,000. Iranians are in the first place among the number of tourists coming to Azerbaijan, and the third place among the foreigners receiving visas through the "ASAN visa".

Many Iranian tourists visit Azerbaijan during the whole year, and especially during the Novruz holiday traditionally marked in both countries in spring.

Iranian companies successfully operate in Azerbaijan. Two countries cooperate within the Joint Car Production Plant at Neftchala Industrial Zone, Joint Pharmaceutical Plant in Pirallahi Industrial Park, Hydro Power Plants in the Energy Sector "Khudaferin / Maiden Tower".

Expansion of cooperation between Azerbaijani port of Alat and Iranian ports of Anzali and Amirabad is crucial in terms of development of transport and transit relations between our countries.

Cooperation between Azerbaijan and Iran in the field of telecommunications and postal cooperation, cyber security, space industry, Iranian use of satellite resources, mobile communications and internet services is on the agenda.

Negotiations on Trans-Eurasian Information Super Highway (TASIM) project on establishment of fiber-optic highway connecting Europe and Asia are also underway. Through this project, the Chinese and European communications will be connected by the north of Iran. The aim of the project is to establish a transnational fiber optic line from Frankfurt to Hong Kong, from Western Europe to East Asia. This project will eliminate "digital distinction" and open new economic opportunities for landlocked Eurasian countries.

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