As important parts of Iran’s civilization, history and culture in the past, Central Asian and South Caucasus regions enjoy a strategic position and prestige in the Iranian foreign policy arena. The goals and approach of the Tehran foreign policy towards the Central Asian and Caucasus regions have been singled out in the framework of Iran’s 20-year Vision Plan (2025 horizon). The Republic of Azerbaijan is among the countries that are in the geographical context of this important document, and is one of the significant and influential neighbors of the Islamic Republic of Iran. Deep historical, cultural, religious, and ethno-linguistic links between the two countries have led to the formation of profound relations between them and among the  citizens on the two sides of common  borders. Such relations are notably less common in Iran’s ties with other neighboring countries.

     In the political sphere, cooperation and consultations between the two countries have entered a new and different stage in recent years, especially after the nuclear agreement (JCPOA) . Being members in the Non-aligned Movement (NAM), the Islamic Cooperation Organization (ICO), the Economic Cooperation Organization (ECO) and the five Caspian Sea littoral states, the two neighboring countries have been able to set up a new form of multilateral cooperation such as the tripartite mechanisms of Iran- Azerbaijan-Russia and Iran-Azerbaijan-Turkey, as well as the quadruple mechanism of Iran-Azerbaijan-Georgia-Turkey region-wide. This has led to a remarkable increase in the diplomatic movements and cooperation in various fields of political, economic and security-defense among the regional countries. As a result of these events, Iranian President Hassan Rouhani and Azerbaijani President Ilham Aliyev met more than ten times in bilateral and multilateral meetings over the past four years, unprecedented in the history of the two countries’ diplomatic relations. President Rouhani’s visit to Baku on March 28th once again reiterated and confirmed such relations between Iran and Azerbaijan.

    In the economic sphere, too, due to the increase of bilateral and multilateral relations, the economic and commercial cooperation between Tehran and Baku has entered a new stage. Establishment of joint border markets, development of two free trade zones of Aras and Maku, granting certain customs clearance privileges, banking, and insurance facilities as well as easing issuance of visa, including airport visa, are among key arrangements that were finalized and became operational during the recent Iranian President’s visit to Baku.

Also, the underway project of linking the Qazvin-Rasht-Astara railway in Iran to the rail network of the Republic of Azerbaijan is a major transit and economic opportunity for Iran that could bring about Iran’s link to the Eurasian Economic Union under the three-way mechanism of Iran-Azerbaijan-Russia. This, in turn, would result in connecting the Iranian ports in the Persian Gulf and the Arabian Sea to the Georgian ports on the Black Sea that would lead to a major leap in increasing the volume of bilateral trade between Iran and Azerbaijan Republic and the whole Caucasus region. The Azerbaijani rail network is currently under construction within the framework of the North-South Corridor.

    Undoubtedly, the energy sector is one of the key areas in the new course of cooperation between Iran and the Republic of Azerbaijan. Being one of the factors of disagreement, competition and divergence in the past two decades, the energy sector is gradually becoming a stable and constructive aspect in relations between Tehran and Baku. In parallel to the successful experiences of the two countries in the field of gas swap in the Nakhichevan Autonomous Region, participation of Iran in the Shah Deniz gas field (that allocates 10 percent of its shares for Tehran), new developments such as the Azerbaijani government requesting Iran to develop the above-mentioned gas field and participate in the gas projects of Trans-Adriatic Pipeline (TAP) and Trans Anatolian Natural Gas Pipeline (TANAP), conclusion of a contract between the Iranian Petroleum Industry Research Institute and Azerbaijan’s Socar Petroleum Institute for the development of oil fields, and the recent agreement between the two countries for the development of joint Iranian-Azerbaijani oil and gas fields, reached during the Iranian President’s visit to Baku, is clearly articulating the formation of new courses between the two countries in the field of energy.

In addition, consultation and cooperation in recent years between Azerbaijan (as a non-member of the Organization of Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF)), and Iran (as a key member of both important international institutions) is another field of collaboration between Tehran and Baku in the area of energy market management.

    Finally, one should refer to the security situation and the fragile and instable conditions in some parts of the Middle East region that provide new grounds for cooperation and interaction between Tehran and Baku. The crisis in Syria and the spread of the wave of terrorism and religious extremism have impacts on the northern and southern areas of the Caucasus region. The transformation of the Islamic Emirate of the Caucasus (affiliated to al-Qaeda) into the Islamic Province of Caucasus (affiliated to ISIS) in the Northern Caucasus region, as well as the remarkable presence of the region citizens, from Chechnya and Dagestan in particular, in the ranks of terrorist and takfiri groups such as the Islamic State of Iraq and the Levant (ISIL), have unprecedentedly affected the complex and rapid developments of the Arab Middle East in the Caucasus region. The end of the domination and control of the radical and terrorist groups, especially ISIL and Jabhat al-Nusra, over much of Syria and Iraq, and the possibility of the return of some extreme forces to the Caucasus region (including the indigenous forces of the North Caucasus region) has posed significant threats to this region . These inflammatory and fragile conditions demand, more than ever, intelligence, security and military cooperation and consultation between Iran and the Republic of Azerbaijan in order to mutually counter the  threats posed as a result of the spread of terrorism and religious extremism.

 Despite the positive developments that have taken place in bilateral relations between Iran and Azerbaijan in various fields of socio-cultural, political, economic and security in recent years, the fact is that the two countries have not yet been able to fully and effectively benefit from their vast common grounds and potentials . May be a mechanism for second track diplomacy by engaging  elites , research centers and  media  can enhance the possibilities of more interaction between the two sides and further strengthening the official diplomacy .

++++

Senior fellow of Expediency council , Member of Scientific Board of Iran & Eurasia Institute