TEHRAN – Iran and Armenia have signed a contract for the construction of the Agarak-Kajaran route as part of Tranche 4 of the International North-South Transit Corridor (INSTC) in the Armenian territory, IRNA reported.

As reported, based on the deal, which was signed in the presence of Iranian Transport and Urban Development Minister Mehrdad Bazrpash and Armenia’s Minister of Territorial Administration and Infrastructures Gnel Sanosyan, Iranian companies are to construct the mentioned road.

According to Bazrpash, the Armenian side is going to fund the project which is worth $210 million.

The contract was signed during a visit of an Iranian delegation headed by the country’s transport minister to Armenia.

During this visit, Bazrpash met and held talks with several high-ranking Armenian officials including the country’s Prime Minister Nikol Pashinyan.

In this meeting, the two sides announced a decision to increase the value of annual trade between the two countries to $3.0 billion.

Referring to the bilateral relations between Tehran and Yerevan, Bazrpash said that economic exchanges between the two countries can be increased to three times the current level which is about $1.0 billion.

He announced Iran's readiness to build a second border bridge in the Nordouz region and welcomed the presence of Armenian investment companies in Iran.

The official also expressed the country’s readiness for the export of technical and engineering services to Armenia.

In early September, ARMENPRESS reported that Armenia is seeking to export its goods through Iran to the Arab countries of the region and India, as the country is trying to also increase trade with the Islamic Republic.

“Armenia and Iran attach great importance to the prospect of carrying out shipments through the Persian Gulf-Black Sea logistic route, and the Armenian side is maximally seeking to support the implementation of this megaproject, attaching great importance to the use of its own territory. The option of exporting Armenian goods through Iranian territory to Arab countries and India is also under discussion, and in this context, the parties have decided to find solutions through joint efforts and simplify the procedures applied from both sides on that road,” Armenia’s commercial attaché to Iran Vardan Kostanyan told ARMENPRESS.

“We are now looking into the untapped potential and opportunities to utilize them in bilateral cooperation. On the other hand, our neighbor is still under sanctions, therefore while carrying out economic policy we are unconditionally taking into consideration this fact. Iran provides state support and protection to companies investing in its economy,” Kostanyan said, highlighting direct meetings between business representatives.

According to Kostanyan, both sides are seeking new opportunities to further develop trade. The two countries plan to increase bilateral trade to one billion dollars, and then to three billion dollars.

He further noted that Iran plans to open eight new free economic zones, bringing the number of its free zones to 15.

Armenia’s membership to the Eurasian Economic Union (EAEU) and its land border with Iran gives opportunities for establishing enterprises and carrying out broad joint projects, he said.

Iran and Armenia are working to significantly increase trade turnover. Last year bilateral trade stood at $714 million, while the data of this year’s first half shows a 13 percent increase, which in turn shows that the positive pace of dynamics is maintained.

On August 25, an exhibition showcasing the products offered by Iranian and Armenian companies in the fields of agriculture, manufacturing, and tourism opened in Yerevan with the purpose of boosting bilateral trade between the two countries.

Hojatollah Abdolmaleki, the secretary of Iran's Free Zones High Council and presidential advisor was personally leading a delegation to Armenia and attended the event.

EF/MA