Iran aims to increase its annual trade sales with Azerbaijan in two important directions. Reflecting the growing economic ties between the two countries, Azerbaijan Modhtaba de Mirchirou from the Iranian ambassador said in an exclusive interview with Trend.
According to the ambassador, the first direction will include holding a meeting of the Joint Economic Committee at the provincial level between Iran and Azerbaijan. These meetings are important for implementing projects that simplify trade, such as logistics planning. The latest session of the Joint Intergovernmental Economic Commission was held in Tehran to provide a platform for strengthening relations and expanding trade.
Demirchilou added that the second direction focuses on business interactions, allowing entrepreneurs from both countries to accustom themselves to each other’s possibilities and opportunities and contribute to a higher trade turn.
“This framework can highlight important steps, such as increasing mutual business visits, simplifying border procedures, and expanding flights between the two countries,” he noted.
Mojtaba Demirchilou stressed that trade sales between Iran and Azerbaijan will rise 34% compared to 2023, reaching $647 million in 2024. However, he emphasized that this level has not yet reached expectations. Iran is working to strengthen economic relations by removing financial and banking obstacles, simplifying the transportation and freight processes, and increasing connections between the business community.
Overview of Iran and Azerbaijan Key Initiatives in the Energy Sector
The ambassador said bilateral and multilateral cooperation projects in the energy sector between Iran and Azerbaijan have been identified.
Demirchilou added that the project includes implementing a cooperation agreement on oil reservoirs in the Caspian Sea, synchronizing the Iran-Azabaijan-Russia electric grid, transporting to Russian gas through Azerbaijan and gas between Azerbaijan and gas, transporting Iran through Iran. Azerbaijan, Iran and Pakistan.
“The energy sector is very important in the development of Iran-Azerbaijan relations. Iran and Azerbaijan have very good relations in the region,” he explained.
Officials noted that Iran is making significant investments in Azerbaijan’s energy sector. “The two countries are building hydroelectric power generation on the Araz River for collaboration, and in the near future, hydroelectric plants will be built on these hydroelectric power generation,” he added.
Additionally, Demirchilou said details of the synchronizing of the electric grids in Iran, Azerbaijan and Russia have now been resolved.
The ambassador emphasized that Monenko, Iran, has completed research work on the power exchange and has prepared and submitted a report to the parties. “Power network synchronization can increase the security of the power networks in three countries and create the possibility of exporting electricity to third parties,” he pointed out.
Demirchilou added that in May a high-level delegation from Iran’s Ministry of Energy visited Baku on this point. “During the visit, they discussed how they could cooperate in the energy sector, particularly the synchronization of the power network between Iran, Azerbaijan and Russia,” he noted.
Construction of the new Araz River Bridge is nearing completion
Construction of a new bridge along the Araz River in the Agbando Kerale region, which connects Iran with Azerbaijan, is expected to be completed by the end of the year.
He emphasized that around 63% of construction has already been completed. DeMir Kirou said work is underway to expand the Iranian side of the highway in the Jorfa direction. Several tunnels are planned as part of the highway extension from Kurare to Jorfa.
“This highway is being built with Iran’s own funds, making it easier and safer for Azerbaijanis to travel between Naktiban and other Azerbaijans,” Demirkiro said.
Progress in improving customs efficiency along the north-south corridors
The ambassador said that if the international north-south transport corridor is fully operational, it will serve the interests of Iran, Azerbaijan and other countries in the region.
According to Demirchilou, as is well known, the corridor has three routes to Iran. The western route of this corridor connects Iran and Russia and passes through Azerbaijan. The diplomat pointed out that Russian participation is currently underway to build the Rasht-Astara Railway as part of this route.
In addition to improving the Rasht Astara Railway in the north-south corridors, Iran is also trying to remove some obstacles at the border crossing and simplify customs procedures.
“In other words, to exploit the possibilities of the North-South international transport corridor, infrastructure must be developed first and foremost, but other opportunities must be developed in parallel,” he pointed out.
MNA/