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BAKU: Think-tank predicts boost in Azeri-Iranian economic relations

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  • BAKU: Think-tank predicts boost in Azeri-Iranian economic relations

    Think-tank predicts boost in Azeri-Iranian economic relations

    Zerkalo, Baku
    25 Jan 05

    Excerpt from CGR analytical group report by Azerbaijani newspaper
    Zerkalo on 25 January entitled "Next stage of dialogue between Baku
    and Tehran", subheaded "Cooperation between Azerbaijan and Iran plays
    pivotal role in maintaining balance of forces in the region"

    Azerbaijani President Ilham Aliyev started his official visit to the
    Islamic Republic of Iran yesterday [24 January]. This visit should be
    considered primarily as the next stage in the dynamic development that
    has been observed in recent months in the Azerbaijani-Iranian
    dialogue.

    As the authors of this article have written in one of their previous
    reports, cooperation between Azerbaijan and Iran plays a leading role
    in maintaining the balance of forces between the power centres of the
    South Caucasus, and is consequently of great significance for the
    security of Azerbaijan and the whole region.

    We would like to concentrate on another important component of
    bilateral cooperation between Azerbaijan and Iran - namely, the
    possibilities for transit alternatives and transport security for
    Azerbaijan.

    Azerbaijan has repeatedly come under pressure from neighbouring states
    on the issue of importing oil and its transport via our territory and
    access to world markets.

    Problems triggered by Russia in the exploitation of the northern
    [Baku-Novorossiysk] oil pipeline were a real headache for Azerbaijan
    before the commissioning of the Baku-Supsa oil pipeline. [Passage
    omitted]

    Nevertheless, we should also bear in mind that we are in a region
    where the interests of various force centres clash. Our country's very
    position at the point of contact of the interests of power centres
    restricts its movements and compels us to take heed of the interests
    of the opposing side in the course of cooperation with neighbouring
    states. First of all there is the US factor, which has had an
    influence on Azerbaijan's relations with Iran. However, if we pay heed
    to the fact that the Baku-Tbilisi-Ceyhan oil pipeline is nearing
    completion, that Azerbaijan is successfully continuing integration
    into the west and is a partner in the antiterror coalition, led by the
    USA along with Russia and the European Union, and that a strengthening
    of our southern neighbour is being observed, then it is easy to
    imagine that a favourable situation for this highly important
    cooperation with Iran in transport has been established.

    Activities in this direction are being carried out in principle. As
    Zerkalo newspaper reported, the sixth session of the
    Azerbaijani-Iranian intergovernmental commission on cooperation in
    economic, trade and humanitarian fields was held in Tehran on 8-9
    January 2005. A memorandum, signed at the end of the session of the
    commission, envisaged the development of a feasibility study of a
    draft project for the construction of an Alat-Astara road. The
    document also stipulated the drafting of projects for the construction
    of a Qazvin-Rasht-Astara (Iran)-Astara (Azerbaijan) railway. If these
    projects are successfully implemented, then the reconstruction of the
    Alat-Astara road, the implementation of the Qazvin-Rasht-Astara
    (Iran)-Astara (Azerbaijan) railway, and the establishment of a single
    railway junction between Azerbaijan and Iran will be conducive to the
    realization of the North-South transport corridor by boosting railway
    transportation between Europe and South Asia. [Passage omitted]

    However, all this does not mean that the important Baku-Tbilisi-Ceyhan
    project will be put back. On the contrary, it will remain the main
    export channel for Azerbaijani oil, and the Iranian route will play a
    supporting role in force majeure circumstances. Such a position will
    take into consideration both geopolitical factors, in particular, the
    level and essence of US-Iranian relations. Thus, a marked
    rapprochement and a striving for the implementation of fully-fledged
    cooperation by both the Iranian and Azerbaijani sides is of
    significance not only for political and economic relations between the
    two countries but also for the resolution of the Armenian-Azerbaijani
    conflict, securing energy and transit security for Azerbaijan, and
    finally, for a strategy of maintaining a balance of forces in the
    South Caucasus.
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