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Analysis

Tehran, Baku Walking Past Misunderstanding, Heading to Partnership Boost

Saturday 9 July 2022
Tehran, Baku Walking Past Misunderstanding, Heading to Partnership Boost

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Alwaght- As Iran adopts a policy of expansion of cooperation with neighbors as part of its "pivot to the East" policy under administration of President Sayyed Ibrahim Raeisi, Central Asian and Caucasian states try to improve their relations with Tehran to higher levels. This has eliminated the political misunderstandings and rifts between Tehran and its Central Asian neighbors fast and replaced them with agreements to boost partnerships. After the important visit to Tehran of Tajikistan President Emomali Rahmon on May 29, which is the first of a Tajikistani president in a decade, Azerbaijani foreign minister visited Iran to open a new page in the relations of the neighbors. During his visit, political and economic issues, especially energy sector that makes up a hefty chunk of their cooperation, were discussed. Also, Iran emphasized a peaceful solution to Karabakh dispute based on recognized international principles. 

As Iran's Foreign Minister Hossein Amir-Abdollahian said, Tehran and Baku have moved past the misunderstandings well and are now in the stage of boosting comprehensive relations in line with bilateral interests. Karabakh conflict in the last two years took military aspects due to the meddling of foreign actors, especially the Israeli regime, and attempts to make changes in the borders with Armenia. These minor problems have been resolved in recent months, however, and now Tehran and Baku try to strengthen their relationships.

Iran and Azerbaijan can collaborate in various economic fields due to their neighborhood and having common borders and closeness to the Caspian Sea. The visit of Azerbaijan's FM takes place after the meeting of the leaders of the Caspian Sea littoral countries in Turkmenistan, where the presidents of the two countries discussed bolstering partnership.

Economy has always been one of the important areas where the two countries strengthen bilateral cooperation. Energy and transit are two important sectors in the economic cooperation of the two countries, which have contributed a lot to the increase of trade. According to the State Customs Committee of Azerbaijan, the volume of trade between them touched $390.46 million from January to November 2021, showing an increase of 28.9 percent compared to the same period in 2020. During this period, Azerbaijan's exports to Iran were $39.17 million and its imports from Iran was $351.29 million. Compared to the year before, the exports showed a 6.6 percent and the imports a 32 percent growth. 

Energy at the center of cooperation 

An important issue in Iranian-Azerbaijani partnership is energy. They share energy fields in the Caspian Sea and have been working on them since long years. According to the agreements reached between the two sides last year, they agreed to use Iran's contractors' capacities in the development of oil and gas fields. Due to the world's increasing needs for energy amid Ukraine crisis, the two neighbors can be influential in the global energy markets due to their vast energy reserves. 

Also, under some agreements, part of Turkmenistan's gas is supposed to be transferred to Azerbaijan via Iran, and this deal will turn a page in the relations between Baku and Tehran and also lead to the development of Iran's route infrastructure. These routes prospectively can play an effective role in transportation of goods to other regional states. Activating energy diplomacy and communication and expanding cooperation with different countries, especially neighbors, is one of the goals of the President Raeisi's government, and so far long steps have been taken to this purpose. 

Also, under Caspian Sea agreements, the two countries can effectively cooperate on maritime security and use the sea's resources. They, moreover, have acceptable cooperation in international organizations like OPEC Plus. Due to its huge energy reserves, Iran can meet the gas needs of the Nakhchivan Autonomous Republic, which has no land connection with Baku, and with this measure. By doing so, Iran can eliminate one of the main obsessions of Baku leaders. 

Yet another case of cooperation between Iran and Azerbaijan is power. Iran buys 600 megawatts of power necessary for its border cities from Azerbaijan and they agreed to increase the supplies. To this end, Iranian energy minister visited Azerbaijan to discuss cooperation boost between the two countries, especially in the energy sector, as well as the power connection of Iran, Azerbaijan and Russia, and important documents are expected to be signed between the two parties. According to the officials in energy ministry, Iran can even export power to Turkey by purchasing about 2,000 megawatts from Azerbaijan in the coming months. Considering Iran's strong need for electricity in the summer, Azerbaijan can meet part of Iran's needs to put an end to power shortage challenge. On the other hand, the plan to connect the power grids of Iran, Azerbaijan and Russia is also being followed up and reviewed. If the plan is concluded, their energy relations will see an upgrade. 

Connecting transit corridors 

In addition to energy sector, railway network connection plays a major role in emergence of new bilateral cooperation chapter. The development of the transit routes and railways of the two countries prepares the ground for the rapid transfer of passengers and goods of the two countries and gives Iran access to Armenia and Georgia through Nakhchivan in the fastest possible time. The Rasht-Astrakhan railway route, which has been in operation since two years ago, will greatly help the transit of Iranian goods to the Republic of Azerbaijan. Iran recently activated its North-South Corridor and Azerbaijan like other countries can use it to transfer its goods to Indian Ocean and Sea of Oman regions in the shortest possible time and even cheaper. Azerbaijan is leaning to cooperation with Iran as it is aware of the significance of its geopolitical position and its tremendous transit and energy capacities. 

Part of their transit projects are incomplete due to the anti-Iranian sanctions. If Iran nuclear agreement with the West is revived, these projects will be resumed and promote their cooperation. Azerbaijan liberated large part of its occupied territories in Karabakh war and Iran can actively help with their reconstruction and provision of construction materials. 

Working for regional peace 

Stronger economic relations automatically heightens political partnership levels. Azerbaijan's close relations with the Israeli regime in the past decade have unleashed Iranian criticism of Azerbaijan policy, but Tehran has never severed its diplomatic relations with Baku and has always tried to mend them when frayed. Therefore, the stronger trade ties with Iran, the less Israeli threats Azerbaijani officials allow to the Iranian security. This also helps secure the shared borders. Additionally, with its proposal for Karabakh dispute solution, Iran can mediate and ease the tensions between Azerbaijan and Armenia— a role beneficial to border stability of the three. 

As a conclusion, although Iran-Azerbaijan relations have seen many highs and lows in recent years, global developments that followed Ukraine war, as well as Iran's geopolitical position boost, make Azerbaijan, like other countries, figure out Iran's capacities and capabilities in various areas. With President Raeisi's administration looking eastward, their relations are expected to upgrade to considerable levels in the future. 

 

Tags :

Iran Azerbaijan Cooperation Energy Karabakh

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