Iran-Azerbaijan Araz Bridge Set for Year-End Completion: A Key Link Between Nations
Iran is set to bolster its annual trade turnover with Azerbaijan, showcasing the strengthening economic ties between these two nations. In an exclusive interview with Trend, Mojtaba Demirchilou, the Ambassador of Iran to Azerbaijan, discussed the strategic directions aimed at enhancing bilateral trade.
The ambassador highlighted two primary areas of focus for increasing trade relations:
- Joint Economic Commission Meetings: These state-level meetings are fundamental for implementing trade facilitation projects, including logistical plans. The latest session of the Intergovernmental Joint Economic Commission took place in Tehran, further solidifying trade relationships.
- Business Interactions: This involves creating opportunities for entrepreneurs from both countries to understand each other’s markets and potential, which is expected to increase trade turnover significantly.
Demirchilou noted, “In this framework, it is possible to highlight important steps such as increasing mutual business visits, simplifying border procedures, and expanding flights between the two countries.”
Reflecting on recent trade dynamics, the ambassador reported that in 2024, trade turnover between Iran and Azerbaijan experienced a remarkable 34 percent increase compared to 2023, amounting to $647 million. However, he expressed that this figure still does not meet expectations, emphasizing Iran’s commitment to enhancing economic relations. This will involve:
- Removing financial and banking obstacles
- Simplifying transit and freight processes
- Strengthening connections between business communities
Energy Sector Initiatives
In addition to trade, the ambassador shed light on significant initiatives in the energy sector. He stated that both countries have identified various bilateral and multilateral cooperation projects, including:
- Implementation of a cooperation agreement on the oil reservoir in the Caspian Sea
- Synchronization of the electricity grid among Iran, Azerbaijan, and Russia
- Transportation of Russian gas to Iran through Azerbaijan
- Gas swap agreements among Azerbaijan, Iran, and Iraq
- Gas and electricity swap arrangements between Azerbaijan, Iran, and Pakistan
Demirchilou emphasized the importance of the energy sector in fostering relations between Iran and Azerbaijan, stating, “Iran and Azerbaijan have very good relations in this area.” He noted that Iran has made substantial investments in Azerbaijan’s energy sector, including the construction of hydrojunctions on the Araz River for joint operations. Future plans also include building hydropower plants at these sites.
Additionally, the ambassador mentioned ongoing efforts to synchronize the electrical grids of Iran, Azerbaijan, and Russia, with the Iranian Monenco company completing research and submitting reports on this electricity exchange. “This synchronization can enhance the security of electricity networks and facilitate the export of electricity to third parties,” he remarked.
In May, a high-level delegation from the Iranian Ministry of Energy visited Baku to discuss cooperation in the energy sector, particularly focusing on the synchronization of the electricity network among the three nations.
New Araz River Bridge Construction Progress
In another significant development, Demirchilou announced that the construction of a new bridge over the Araz River in the Aghband-Kelaleh region is nearing completion, expected to finish by the end of this year. Currently, around 63 percent of the construction work has been completed.
The ambassador highlighted that efforts are underway to expand the highway towards Jolfa on the Iranian side, which includes plans for several tunnels as part of this highway extension. “This highway is being built with Iran’s own funds. It will allow Azerbaijani citizens to travel more easily and safely between Nakhchivan and the rest of Azerbaijan,” he added.
Enhancing Customs Efficiency Along the North-South Corridor
Demirchilou also discussed the potential of the International North-South Transport Corridor, which, once fully operational, will benefit Iran, Azerbaijan, and other regional countries. He pointed out that this corridor has three routes in Iran, with the western route connecting Iran and Russia through Azerbaijan. Currently, efforts are underway to construct the Rasht-Astara railway as part of this route, with collaboration from Russia.
Efforts to enhance the Rasht-Astara railway of the North-South Corridor are ongoing, alongside initiatives to remove obstacles at border crossing points and streamline customs procedures. “To fully utilize the potential of the North-South international transport corridor, it is essential to develop infrastructure and explore other opportunities in parallel,” he concluded.
