TEHRAN- Trade relations between Iran and the Republic of Azerbaijan have seen remarkable growth in recent years. By leveraging their cultural, historical, and geographical commonalities, the two countries have worked to expand their economic cooperation through joint projects, border trade exchanges, and the development of transit corridors.

The Republic of Azerbaijan holds an important position in Iran's neighborly policies. Beyond the bonds of neighborhood and historical connections, the two nations share familial ties.

Fortunately, a new chapter has been opened in the relations between the two countries, which is promising for both nations. There are numerous opportunities for mutually beneficial cooperation ahead of them.

The agreements reached and the joint projects currently underway between Iran and Azerbaijan in the fields of trade, energy, and transportation, as well as the continuation and strengthening of these collaborations, will transform Iran and Azerbaijan into strategic partners for one another.

Iran and Azerbaijan signed Persian and Azeri versions of a memorandum of understanding (MOU) on April 8 during the 16th Joint Economic Committee meeting, co-chaired by Iran’s minister of transport and urban development and Azerbaijan’s deputy prime minister.

The meeting between Iranian Minister Farzaneh Sadegh and Azerbaijan’s Deputy Prime Minister Shahin Mustafayev focused on reviewing bilateral projects and cooperation in economic, transport, trade, energy, and banking sectors.

The signed Persian and Azeri texts of the memorandum were appended to the English version of the MOU, which had been previously signed in Tehran in February 2025.

As part of her official visit, Minister Sadegh also inspected joint transport infrastructure projects between the two countries.

Sadegh, who also chairs the Iran-Azerbaijan Joint Economic Committee, also met with Azerbaijani President Ilham Aliyev in Baku to discuss bilateral ties and economic cooperation. The meeting focused on expanding joint projects across key sectors including transportation, customs, water and energy, oil and gas, and preferential trade.

' Delegations' visits to strengthen friendship between the two countries'

At the beginning of the meeting, Azerbaijani President Ilham Aliyev appreciated the recent reciprocal visits of high-level delegations from Azerbaijan and Iran, noting that these visits provide a valuable opportunity to strengthen friendship between the two countries and promote bilateral cooperation.

He mentioned the holding of the meeting of the Iran-Azerbaijan Joint Economic Committee and emphasized that the meeting’s agenda includes important projects aimed at expanding cooperation in the fields of economy, trade, energy, and transportation.

The Iranian minister, for her part, emphasized her country’s interest in developing relations with Azerbaijan in all areas, and pointed to the strong historical, cultural, and religious ties between the two nations.

Sadegh led a high-level Iranian delegation to Azerbaijan from April 7 to 10 to review progress on past agreements, remove barriers to joint ventures, and lay the groundwork for an upcoming visit by Iranian President Masoud Pezeshkian and his accompanying delegation to Baku (on Monday, April 28).

Amin Tarafo’, advisor to the minister and head of the ministry’s international affairs office, said the trip was made at the formal invitation of Azerbaijan’s Deputy Prime Minister Shahin Mustafayev.

‘Iran determined to expand trade ties with Azerbaijan’

In a previous meeting between Mustafayev and Iran’s Minister of Finance and Economic Affairs Abdolnaser Hemmati, the Iranian side said the country is determined to expand its trade ties with neighboring Azerbaijan.

Hemmati said the size of trade between Iran and Azerbaijan, which is around $400 million per year, is very low and does not match the state of relations between the two countries.

After the meeting, the official said that he and Mustafayev had agreed in their meeting that communication between the banking and insurance institutions of Iran and Azerbaijan should expand to allow an increase in trade relations between the two countries.

Trade, economic co-op central pillars of Iran-Azerbaijan relations

Iran and the Republic of Azerbaijan, as neighboring countries, have long maintained close relations. Cultural, linguistic, and historical commonalities between the two nations have provided a strong foundation for economic development.

In recent years, influenced by regional and global developments, trade and economic cooperation have become central pillars of their bilateral relationship. The volume of trade between Iran and Azerbaijan has shown an upward trend, reflecting the strengthening ties between the two countries.

Despite challenges, the future of trade between Iran and the Republic of Azerbaijan appears promising. Relying on their cultural and historical commonalities, the two nations have strived to broaden their cooperation across various economic sectors.

In the coming years, joint projects in the fields of energy, transportation, and industry could significantly contribute to the growth of bilateral trade. Additionally, the development of border infrastructure and the simplification of customs regulations are among the key factors that could play a crucial role in boosting trade exchanges.