TEHRAN: Relations between Azerbaijan and Iran have entered a new phase, in particular, they have actively developed in the past 2.5 years. Azerbaijan’s Deputy Economy Minister Sahil Babayev made this remark at the Iran Project-2016 exhibition held in Baku on September 19. The history of relations between Iran and Azerbaijan has a particular specificity, causing all stages of the development of bilateral relations.
The present Iranian administration’s policy of improving international relations, Tehran’s pursuit of win-win situations, and a political will shared by Iran and Azerbaijan have improved the chances of growing economic ties between the two neighboring countries. So far, Iranian companies have invested $2.6 billion to the Azerbaijani economy, according to Babayev, saying that only $145 million were put up in non-oil sector.
Some 450 companies with Iranian capital are operating in the country. “For slightly more than a two-year period heads of two states met seven times. More 80 mutual meetings were held and over 40 documents were signed between the two countries. Also, two meetings of intergovernmental commissions were organized. In February, President Ilham Aliyev paid a very successful visit to Iran, and in August, Iranian President Hassan Rouhani in Azerbaijan. As part of these visits, more than 20 documents were inked. This is the biggest indicator of the strategic importance of our relations,” the deputy minister explained.
Babayev emphasized that the warm relations between Azerbaijan and Iran, as well as historical, cultural and religious unity among the nations have given their results in the economic sphere. “For seven months of 2016 the trade turnover between the countries increased by 70 percent. Both export from Azerbaijan and import from Iran increased,” he said.
Azerbaijan imports food and construction products from Iran, while, export electricity to this neighboring country. The deputy minister noted that this means about the created trust and business climate between the countries.
“Azerbaijan is ready to support the activities of Iranian companies in the country with the help of industrial parks, neighborhoods, special economic zones, investment promotion instruments, etc.,” Babayev said. After the western sanctions were lifted from Iran, Tehran has repeatedly expressed intention to improve trade with neighboring Azerbaijan in a bid to make up for the decline in trade turnover between the two countries. Due to the reduction in revenues of Azerbaijan in connection with the decline in oil prices, Baku is also interested in development of mutually beneficial areas of cooperation.
Agriculture is one of the most important spheres for Azerbaijan and Iran, both countries have a great potential to boost agriculture cooperation. The cooperation in this sphere would give a stimulus for diminishing dependence on oil sector. The countries are continuously working on the development of this sphere and ensuring the food security of the countries.
Cooperation in the framework of major international North-South transport corridor and designing a railway bridge over the Astarachay also propel the development of economic cooperation in transportation, tourism and trade sectors. The corridor is meant to connect Northern Europe to South-East Asia. It will serve as a link connecting the railways of Azerbaijan, Iran and Russia.
Now the two countries also seek to develop their banking sector. Earlier, Baku office of Milli Iran Bank for many years was active in order to enhance bilateral economic relations between the two states, but sanctions imposed by West on Iran prevented this.
Expert claimed that lifting of sanctions will increase the number of banking transactions between Azerbaijan and Iran and indeed, soon, the central banks of the two courtiers will open checking accounts, according to the head of Iran’s Central Bank Valiollah Seif. The checking accounts will open according to a Memorandum of understanding (MoU) signed between the central banks of the two countries.
Under the MoU, the central banks of Iran and Azerbaijan will encourage their commercial banks to establish bilateral banking ties through opening correspondent accounts, and conditions for establishing their branches in both countries have been created. Iran and Azerbaijan also intend to establish a joint regional Bank and thereby develop financial cooperation between the two countries.
