Iran-China-Russia naval drill in Indian Ocean

The navies of Iran, China, and Russia have initiated joint drills in the northern tip of the Indian Ocean, marking their fifth collaborative military exercise in recent years. Naval delegations from Azerbaijan, Kazakhstan, Oman, Pakistan, and South Africa are present as the observers of the exercises.

Chinese and Russian naval forces have entered Iranian territorial waters to participate in the primary stage of the naval war game, named Maritime Security Belt 2024, near the Gulf of Oman. This international exercise, involving Iran, China, and Russia, underscores a commitment to peace and security in the region.

During a joint press conference with Russian and Chinese commanders, Second Flotilla Admiral Mustafa Taj al-Dini emphasized the strategic significance of this being the fifth joint exercise among the involved countries. He highlighted the objectives of this joint naval drill, including bolstering maritime trade security, combating piracy and terrorism, and fostering cooperation among the participating nations.

According to Taj al-Dini, this security-focused exercise, covering an expansive area of 17,000 square kilometers, aims to address multifaceted challenges. Despite the approaching festivities for the Persian New Year, the spokesperson underscored that security efforts remain steadfast.

Notably, naval units from Iran, China, and Russia, comprising destroyers and missile cruisers, actively contribute to this collaborative initiative.

Iranian naval forces, along with their Chinese and Russian counterparts, have conducted several military drills in recent years to enhance the security and stability of international maritime trade. They have also collaborated in countering piracy and maritime terrorism, exchanging information in naval rescue and relief operations, as well as sharing operational and tactical experiences.

Russia's defense ministry stated that the exercises, running through Friday and involving warships and aviation, would focus on the protection of maritime economic activity.

The Russian defence ministry said its Pacific fleet, led by the Varyag guided missile cruiser and the Marshal Shaposhnikov frigate, had arrived at Iran’s Chabahar port on Monday to take part in the joint drill.

China’s defense ministry mentioned that the drills aimed at jointly maintaining regional maritime security. China sent its 45th escort task force, consisting of the guided-missile destroyer Urumqi, guided-missile frigate Linyi, and the comprehensive supply ship Dongpinghu, to the exercise.

Last month, Rear Admiral Shahram Irani, commander of the Iranian Navy, announced Tehran's plan to hold joint drills with Beijing and Moscow before the end of March, aimed at ensuring regional security.

Providing insights into the strategic maritime efforts, the rear admiral revealed that the mission to safeguard Iran's shipping lines in international waters commenced in 2009 under the direct command of the Leader of the Islamic Revolution, Ayatollah Seyyed Ali Khamenei.

Emphasizing the unwavering commitment of the Army's strategic naval force, he highlighted their continuous role in ensuring the security of the nation's economic hub in both the Gulf of Aden and the northern Indian Ocean.

The admiral further highlighted the expansion of the security mission beyond securing shipping lines in the Red Sea over the past four years. Currently, the comprehensive management of protection for Iran's shipping lines extends from the Gulf of Aden to the Suez Canal.

The Iranian Navy conducts routine exercises throughout the year. In recent years, Iranian military experts and technicians have made significant progress in developing and manufacturing a diverse range of military equipment, achieving self-sufficiency for the armed forces in the military industry.

In March 2023, Iranian, Chinese, and Russian naval forces staged the 2023 Marine Security Belt war game in the northern parts of the Indian Ocean, marking the fourth joint exercise in recent years. Alongside Chinese and Russian fleets, more than 10 Iranian Navy vessels and three helicopters reportedly took part.

 Courtesy Tehran Times

Iran: Peace in its neighborhood

On the sidelines of the World Economic Forum’s Annual Meeting, Iranian Foreign Minister Hossein Amir Abdollahian held talks with several high-ranking officials from around the world, to discuss various regional and international issues.

During a meeting with Armenian President Vahagn Khachaturyan, Amir Abdollahian stated that Tehran is an advocate of peace in the Caucasus region. 

Referring to his recent trip to Yerevan and his meetings and discussions with the Armenian foreign minister and the secretary of the country’s National Security Council, the Iranian foreign minister said, “Armenia has a significant place in Iran’s neighborhood policy.”

Amir Abdollahian pointed out that the ties between the two countries are strong, saying the bilateral ties are advancing. He said boosting the ties would serve the interests of both nations.

The Iranian foreign minister highlighted the importance of preserving the security and stability in the Caucasus region and said Iran has always supported the peace talks between the Republic of Azerbaijan and Armenia.

Amir Abdollahian held an extensive meeting with his Georgian counterpart Ilia Darchiashvili.

Expressing his satisfaction with the meeting, the Iranian foreign minister hailed the old and strong relations between the officials and people of both countries.

Amir Abdollahian said the promotion of ties with Georgia is one of Iran’s priorities and further stated that Tehran cares about the security in the Caucasus and Georgia.

He sounded upbeat that the relations between the two countries would be developed without any restrictions.

The Iranian foreign minister underlined the necessity to rely on regional solutions for the problems in the region, explaining that the security issues of the region are tied and related to each other.

Another person the Iranian diplomat convened with was Saudi Arabia’s foreign minister Faisal bin Farhan.

In the meeting, Amir Abdollahian and bin Farhan exchanged views over bilateral issues such as economic and trade cooperation.

The two top diplomats also discussed other issues of mutual interest such as Palestine’s developments and the latest state of the war in Gaza.

The Iranian foreign minister outlined the developments in Gaza and the crimes of the Zionist regime with US support, stressing Iran's support for efforts to prevent the expansion of the war and for the restoration of stability and peace in the region.

Amir Abdollahian also referred to Iran's efforts to dispel some concerns in the region and the world, including Iran's efforts to put in place mechanisms to ensure energy security.

 

Iran natural gas export rises 9% in 2022

A report by the Energy Institute (EI) shows that Iran exported 18.9 billion cubic meters (bcm) of natural gas in 2022, registering 9%YoY growth.

As reported, in its 72nd edition of the Statistical Review of World Energy, the UK-based institute noted that Iranian gas export accounted for 2.5 percent of the world's total natural gas trade through the pipeline last year.

The Islamic Republic had exported 17.3 bcm of natural gas in 2021, according to the entity.

The total global trade of natural gas through pipelines in 2022 was 718 bcm, which indicates a growth of 2% as compared to the earlier year. In 2021, about 704 bcm of natural gas was exported through pipelines across the globe.

The increase in Iranian gas export during 2022 was more than four times the average growth of the global trade of the product, said the report.

Of Iran's total export of 18.9 bcm in the previous year, 9.4 bcm were exported to Iraq, 9.1 bcm to Turkey, and 0.4 bcm to the Republic of Azerbaijan.

The EI also noted that Iran’s natural gas production has increased 2.5 times more than the global average over the past 10 years.

According to the EI report, natural gas production in Iran has been on an upward trend since 2011, and the US sanctions have not been able to stop or reverse the growth of gas production in Iran.

Between 2012 and 2022, natural gas production in Iran has grown by an average of 5.2% annually, which is more than 2.5 times the global average growth. The world's natural gas production has grown by an average of two percent per year during this period.

Most of Iran’s natural gas comes from the country’s giant South Pars gas field which the Islamic Republic shares with Qatar in the Persian Gulf.

The huge offshore field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers, called North Dome, are situated in Qatar’s territorial waters.

South Pars is estimated to contain a significant amount of natural gas, accounting for about 8% of the world’s reserves, and approximately 18 billion barrels of condensate.

 

Israeli President’s visit to Azerbaijan

President Isaac Herzog will travel to Azerbaijan on Tuesday to strengthen the strategic ties between Israel and the Shia Muslim country bordering on Iran.

During the two-day visit, Herzog plans to meet with his Azeri counterpart Ilham Aliyev and to take part in a special event marking the 75th anniversary of Israeli independence.

Aliyev will welcome Herzog and his wife, Michal, at his palace, with an honor guard, and the two presidents plan to hold a diplomatic meeting, followed by a lunch.

Health and Interior Minister Moshe Arbel will accompany Herzog to Azerbaijan, where he plans to meet with his counterparts in Baku to discuss greater cooperation in training doctors, emergency preparedness and digital health.

Israel and Azerbaijan are expected to sign an agreement on health cooperation during the visit.

The Herzogs will also meet with members of the Jewish community in Azerbaijan. They are expected to be met at the airport by 30 children who attend the Chabad School in Baku, waving the flags of Israel and Azerbaijan.

Azerbaijan opened an embassy in Israel for the first time in March of this year, though Israel has had an embassy in Baku since 1993.

Baku had been hesitant to open an embassy in Israel in the past for fear of alienating other Muslim-majority states or provoking Iran but saw the Abraham Accords and Israel's rapprochement with Turkey, in which Aliyev played a part, as turning points.

Israel and Azerbaijan have a close defense relationship. Jerusalem supplied drones to Baku that were used in its 2020 war with Armenia, according to foreign reports.

The Stockholm International Peace Research Institute found that 69% of Azerbaijan’s arms imports in 2016-2020 came from Israel, which represents 17% of Israel’s arms exports in that period.

About 40% of the petroleum imported to Israel comes from Azerbaijan.

Azeri politicians tied the move to open an embassy in Israel to Iran opening an additional consulate and declaring close ties with Armenia, with which Azerbaijan fought a war in 2020.

Iran and Azerbaijan share a 670-kilometer border, and there has long been speculation that Israel has launched covert operations in Iran from its northern neighbor.

Last year, Iranian Foreign Minister Hossein Amir Abdollahian accused Israel of having established its presence in several regions of Azerbaijan, which Baku denied.

Soon after, Iran staged a military drill along the border. Aliyev responded by having himself photographed with Israeli Harop kamikaze drones, which are produced in his country.

Also this week, Foreign Minister Eli Cohen will be making a diplomatic trip to Central Europe to meet with senior government figures in Croatia, Slovakia, Hungary, and Austria. He plans to visit four countries and meet with five foreign ministers in four days.

He will be the first Israeli foreign minister to visit Slovakia and the first in 10 years to go to Zagreb.

“The diplomatic visit to Central Europe strengthens our strategic coordination with our allies and creates opportunities for Israel to promote its diplomatic and economic interests on the continent,” Cohen said. “Israel’s allies in the EU play an important role…from economic, cultural and technological cooperation, to our joint fight against terror and a nuclear Iran.”

 

Is Iran-Azerbaijan tension being fueled by Israel?

The 2020 Nagorno-Karabakh war between Azerbaijan and Armenia had profound repercussions for Iran’s influence and policies in the South Caucasus. Tehran neither impacted the trajectory of the conflict nor exerted significant diplomatic influence in ceasefire negotiations and the ensuing peace agreement. 

Though Iran was the most relevant regional power in the conflict, bordering both Armenia and Azerbaijan, it was sidelined by Turkey and Russia. Tehran was obliged to align with Ankara and Moscow in supporting Baku’s territorial conquests, revealing a significant departure from its traditional pro-Armenia stance. 

From Iran's point of view, it is Tel Aviv that provokes Baku to take a belligerent policy against Tehran and to challenge the geopolitical status quo.

Azerbaijan did not reciprocate Iran’s good faith. Baku knowingly isolated Tehran in Nagorno-Karabakh’s reconstruction, while prioritizing Israel and Arab and European countries.

Backed by mighty military powers such as Turkey, Israel and Pakistan, Azerbaijan felt it could flex its muscles against Iran’s regional power projection. Recently, Baku hosted a joint military drill with Ankara and Islamabad, aiming to further strengthen ties among the three countries and to bolster counterterrorism efforts. 

The joint drill contradicts the provisions of the Convention on the Legal Status of the Caspian Sea, which bans the presence in the Caspian Sea of armed forces not belonging to the Parties" (Azerbaijan, Iran, Kazakhstan, the Russian Federation and Turkmenistan). 

On the margins of the drill, Baku tacitly challenged Iran’s connectivity with Armenia by disrupting Iranian trucks transiting a road that passes through Azerbaijan’s newly captured territories. Azerbaijan set up check points, began charging fees to Iranian trucks, and even detained two Iranian truckers.

Unlike Azerbaijan’s attempt to depict recent incidents as routine procedure, Tehran sees this new, assertive Azerbaijan in a bigger picture, where Baku plays the anti-Iran puppet role for other regional powers hostile to Iran, such as Israel. 

Tehran initially tasked the Revolutionary Guard Corps with deploying equipment and troops across the country’s northwestern border. But this was just a small part of Iran’s grand plan to intimidate Baku. Days later, Tehran launched its own military drill near the Azerbaijani border, saying "We will never tolerate the presence of the fake Zionist regime near the Iranian border, nor any changes in the regional borders and geopolitics”.

This rare move, alongside hawkish comments by Iranian officials, suggests that Tehran is indeed concerned about the potential for grave geopolitical changes near its borders. 

Iran’s Kayhan newspaper, a publication close to hardliners, claimed that based on a Turkish-American plan, Armenia’s western-oriented president, in collusion with Baku, intends to concede Armenia’s Syunik province to Azerbaijan. This is the only conceivable reason for Iran’s outrage at Azerbaijan. 

Syunik province separates the rest of Azerbaijan from the Nakhchivan Autonomous Republic exclave, and constitutes the Armenian border with Iran.

The 2020 peace deal between Azerbaijan and Armenia guaranteed Azerbaijan a corridor to connect Nakhchivan to the rest of Azerbaijan via Syunik province. Previously, all connections were made through Iran in the south or Turkey in the west. 

Baku is apparently not satisfied with this plan, and maintains an ambitious goal to take all of Syunik province, which could put Iran in a disadvantageous geopolitical position.

Tehran would lose its connection to Armenia and convenient access to the region, while being compelled to deal with a newly emboldened regional power that is heavily backed by Iran’s arch-enemy, Israel.

From Iran’s point of view, it is Tel Aviv that provokes Baku to take a belligerent policy against Tehran and to challenge the geopolitical status quo.

The title Tehran has chosen for its ongoing drills in the country’s northwest drives this point home ‑ Fatehan-e Khaybar is a call back to the Battle of Khaybar in the year 628, in which the Prophet Mohammed confronted the Jews of the Khaybar region, who were inciting Arabian tribes against the Muslims of Medina. 

Supreme Leader Ayatollah Ali Khamenei recently warned Azerbaijan against aligning with Israel noting, “Those who think that their security will be ensured by relying on foreigners should know that they will pay a hefty price.”

The type and scale of military equipment stationed at the border suggests that Iran intends to deter Baku from territorial adventurism, but Tehran ultimately wants to avoid an armed clash. If the situation deteriorates and Azerbaijan opts not to address Tehran’s concerns and warnings, Iran may cross the border to push preemptive deterrence from Armenian soil. A key factor at that point would be the extent to which Azerbaijan’s allies, primarily Turkey, would be prepared to support Baku and participate in a direct confrontation with Iran. 

Meanwhile, Iran seems determined not to step back without affirming its national security red lines, establishing a credible level of deterrence, and asserting its undeniable regional role, which has been somewhat tarnished amid the recent security developments in the South Caucasus. 

Astarachay Bridge to enhance Iran Azerbaijan economic cooperation

Readers of this blog site may recall that the signing ceremony of memorandum of understanding (MOU) for cooperation in the construction of this bridge was covered on January 28 this year. Today an update is being presented, an evidence of the commitment and hard work of the people of both the countries.

Iranian Ambassador to Baku, Abbas Mousavi has said that completing the bridge over the Astarachay border river is going to diversify the modes of transportation between Iran and Azerbaijan and improve economic cooperation between the two countries.

“The completion of the bridge between Iran and Azerbaijan will boost business in both countries and result in diverse transportation (both railway and automobile) between the two sides,” Mousavi said on Wednesday on the sidelines of a visit to the bridge construction site.

Having a length of 89 meters and a width of 30 meters, this bridge aims to connect the international transit highways of the two countries (Baku-Rasht-Qazvin highways), the official explained.

According to the official, the transport ministers of the two countries are going to meet soon to discuss such joint projects and ways of expending transportation and transit cooperation.

“Also, a tripartite meeting between Iran, Azerbaijan and Russia will be held in the near future to review issues related to transit, customs, and the development of the North-South corridor,” Mousavi added.

Iran and Azerbaijan signed a memorandum of understanding (MOU) in late January for cooperation in constructing the bridge over the Astarachay border river.

The MOU was signed by Iranian Deputy Transport and Urban Development Minister Kheirollah Khademi and Azerbaijan’s Deputy Minister of Digital Development and Transport Rahman Hummatov in Baku on January 26.

The two neighbors had earlier announced the total investment made in the project to be 4.7 million euros.

Speaking in the signing ceremony of the mentioned MOU, Azeri Deputy Prime Minister Shahin Mustafayev said the construction of the bridge is scheduled to be completed by the end of 2022.

"The president and the government of the Republic of Azerbaijan attach special importance to the development of relations with the Islamic Republic of Iran, and the presidents of Iran and Azerbaijan expressed interest in further developing relations between the two countries in a cordial meeting in Ashgabat," the official said.

Noting that Azerbaijan and Iran have established deep relations in various areas including trade, economy, energy, customs, and investment, he said: "There are good opportunities between the two countries to implement joint projects in these fields."

Iranian Transport Minister Rostam Qasemi for his part called Azerbaijan the closest neighbor to Iran and said: "We hope that after the meeting of the presidents of the two countries, relations between the two nations will develop as much as possible."

 

 

Iranian non-oil trade with neighbors up 18% during March-June 2022 quarter

The value of Iran’s non-oil trade with its neighboring countries increased 18% during the first three months of the current Iranian calendar year (March-June), as compared to the same period last year, the spokesman of Islamic Republic of Iran Customs Administration (IRICA) announced.

Ruhollah Latifi put Iran’s non-oil trade with its neighbors at 20.973 million tons worth US$12.363 billion in the three-month period.

He said trade with the neighbors accounted for 49% of the value and 59% of the weight of Iran’s non-oil trade during the period under review.

The country exported 16.05 million tons of non-oil goods worth US$6.736 billion to the neighboring countries in the three-month period of this year, indicating 20% rise in value, while 10% drop in weight, as compared to the same period last year, the official stated.

He named Iraq, Turkey, United Arab Emirates (UAE), Afghanistan, and Oman as the five top export destinations.

Latifi further announced that Iran imported 4.433 million tons of goods worth US$5.627 billion from its neighbors during this period, with 15% growth in value and one percent rise in weight YoY.

He named UAE, Turkey, Russia, Pakistan, and Oman as the five top sources of imports.

As previously announced by the IRICA head, the value of Iran’s non-oil trade with its neighbors during the previous Iranian calendar year 1400 was reported at US$51.875 billion, an increase of 43% YoY.

Alireza Moghadasi put the weight of non-oil trade with the neighboring countries at 100.131 million tons in the said year, stating that trade with the neighbors also increased by 23% in terms of weight.

The official put the annual non-oil exports to the mentioned countries at 75.445 million tons valued at US$26.29 billion, with a 29% rise in value and a 12% growth in weight.

Major export destinations of the Iranian non-oil goods were Iraq with US$8.9 billion, followed by Turkey (US$6.1 billion), United Arab Emirates (US$4.9 billion), Afghanistan US$1.8 billion) and Pakistan with (US$1.3 billion) in imports from the Islamic Republic, others countries included Oman, Russia, Azerbaijan, Turkmenistan, Armenia, Kazakhstan, Kuwait, Qatar, Bahrain, and Saudi Arabia, according to the official.

Moghadasi further stated that Iran imported 24.686 million tons of non-oil commodities worth over US$25.846 billion in the previous year, with a 60% growth in value and a 68%YoY increase in weight.

The United Arab Emirates was the top exporter to Iran during the period exporting US$16.5 billion worth of goods to the country, followed by Turkey, Russia, Iraq, and Oman, he stated.

Pakistan, Kazakhstan, Azerbaijan, Turkmenistan, Afghanistan, Armenia, Kuwait, Qatar, and Bahrain were other top neighboring countries that supplied goods to Iran in 1400, respectively.

Increasing non-oil exports to the neighboring countries is one of the major plans that the Iranian government has been pursuing in recent years.

Iran shares land or water borders with 15 countries namely UAE, Afghanistan, Armenia, Azerbaijan, Bahrain, Iraq, Kuwait, Kazakhstan, Oman, Pakistan, Qatar, Russia, Turkey, Turkmenistan, and Saudi Arabia.

Russia-Azerbaijan-Iran-Pakistan railway route

Chairman of the Russia-Iran Joint Trade Council has said Moscow is pursuing the development of trade and transit through the Russia-Azerbaijan-Iran-Pakistan railway route, the portal of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) reported.

Speaking in a meeting with ICCIMA Head Gholam-Hossein Shafeie on Saturday, Vladimir Abedinov proposed to form a working group between the representatives of the chambers of commerce of Russia, Azerbaijan, Iran, and Pakistan to explore various aspects of the trade through the mentioned route.

Expressing Russia’s willingness to strengthen trade relations with Iran, the official pointed to the western sanctions against Russia and said, "These sanctions have changed the transit and logistics routes in the region. Since the impact of sanctions has caused Russia's trade relations to undergo significant changes. In this regard, we are looking for new transportation routes in the region.”

“Completion of the Rasht-Astara route is of great importance for Russia's trade purposes. This route paves the way for Russia to access Pakistan,” Abedinov said.

He further noted that Russia can also access Pakistan and India by sending its cargoes to Iran’s northern ports by vessel and then transit them through Iran to Pakistan and India.

"This is a complex route; therefore, Russia seeks to replace it with the railway through Azerbaijan to Iran, Pakistan, and India,” he added.

Shafeie for his part pointed to the current conditions as special for the whole region and considered it necessary to make special decisions in accordance with these conditions.

According to the ICCIMA head, considering the current situation, the Iranian government has made the issue of transit a priority in its goals and plans, although there are infrastructural problems in the port area on both the Iranian and Russian sides.

He further mentioned some of the problems regarding rail transportation to Pakistan, saying, “The railway problems in Pakistan are not easily solved despite Iran's efforts. For example, a shipment was sent by rail from Iran to Lahore, Pakistan, which took 35 days to arrive to the destination.”

 

Tehran-Baku ink MoU for constructing bridge over Astarachay River

Iran and Azerbaijan have signed a memorandum of understanding (MOU) for cooperation in constructing a bridge over the Astarachay River. The MoU was signed by Iranian Deputy Transport and Urban Development Minister Kheirollah Khademi and Azerbaijan’s Deputy Minister of Digital Development and Transport Rahman Hummatov in Baku.

As reported by IRNA, the project for the construction of the mentioned bridge was commenced in a ceremony attended by Iranian Transport Minister Rostam Qasemi and Azeri Deputy Prime Minister Shahin Mustafayev.

Qasemi, who is also the head of the two countries’ Joint Economic Committee, traveled to Azerbaijan with a delegatio to visit the country’s economic areas and explore avenues of mutual cooperation.

Iran and Azerbaijan had earlier announced the total investment made in the project to be 4.7 million euros.

The construction of Astarachay Bridge is going to be a positive step in completing the North-South Corridor and is expected to open a new gate for the development of all-out relations between the two neighbors.

Speaking at the ceremony, Mustafayev said the construction of the bridge is scheduled to be completed by the end of the current year.

"The president and the government of the Republic of Azerbaijan attach special importance to the development of relations with the Islamic Republic of Iran, and the presidents of Iran and Azerbaijan expressed interest in further developing relations between the two countries in a cordial meeting in Ashgabat," the official said.

Azerbaijan and Iran have established deep relations in various areas including trade, economy, energy, customs, and investment, he said: "There are good opportunities between the two countries to implement joint projects in these fields."

Mustafayev further mentioned the upward trend of trade between the two countries and said, “Despite the Coronavirus pandemic in the last two years, the trade turnover of Iran and the Republic of Azerbaijan in the first 11 months of 2021 increased by 30% as compared to the previous year and the amount of road transport also increased by 62.5%.”

“During this period, the transportation and transit of goods between the two countries have not stopped for a single day,” he stressed.

Qasemi for his part called Azerbaijan the closest neighbor to Iran and said, "We hope that after the meeting of the presidents of the two countries, relations between the two nations will develop as much as possible."

He pointed to the development of relations with neighbors as one of the priorities of the Iranian government and, referring to Iran's participation in the implementation of projects in Azerbaijan’s liberated territories in Karabakh, said, "Cooperation between the two countries in this area can accelerate the reconstruction of these regions.”

Qasemi noted that the development of transport and transit in the region is in the interest of both countries, and said that the two countries’ Joint Economic Committee could help deepen economic relations between them, as well as provide the necessary facilities for businessmen and entrepreneurs.

Khademi termed the construction of the Astarachay Bridge as an effective step in completing the north-south corridor and said, "The construction of this bridge will lead to economic, tourism, industrial and transportation development of the two countries due to the cultural, social and religious commonalities of the two neighboring countries."

“The Astarachay border bridge will lead to the development of transit trade between the two countries, which, in parallel with the existing railway bridge, will lead to the comprehensive development of the region,” he said.

Iran begins swapping Turkmenistan gas to Azerbaijan

According to a report, the agreement between Iran, Azerbaijan and Turkmenistan on a natural gas swap deal for up to two billion cubic meters of Turkmen gas has taken effect on January 01, 2022.

As reported, of the total received gas from Turkmenistan about 20 to 30 percent will be the share of Iran as swap fee and the rest will be delivered to Azerbaijan. Azerbaijan will reportedly receive four million cubic meters of new energy supplies per day. However, the figure is currently less than four million and will gradually reach that amount.

The deal, which was backed by the Presidents of the three Caspian countries during the 15th Summit of the Economic Cooperation Organization (ECO) in the Turkmen capital city of Ashgabat on November 28, 2021, was signed by the oil ministers of the two countries on November 30, 2021.

Under the swap deal, Iran will receive gas from Turkmenistan and deliver an equivalent amount minus the swap fee to Azerbaijan at the Astara border. The gas that Iran will receive from Turkmenistan under the swap agreement will cater to the needs of Northern provinces of the country.

Iran has major natural gas fields in the south but has imported gas from Turkmenistan since 1997 for distribution in its Northern provinces, especially during the winter.

Experts believe that the implementation of this deal could encourage other countries in the region to ink similar deals and to use the Islamic Republic’s capacities in this regard.

Having the largest high-pressure gas pipeline network after Russia, Iran can play a key role in transferring gas from east to west of Iran and to the neighboring countries such as Azerbaijan.

This deal is also a big step for Iran as it would ensure stable gas supply to the country’s Northeastern regions which are far away from the sources of natural gas in the country.

Iran’s growing trade with ECO member countries

Iran’s trade with the members of the Economic Cooperation Organization (ECO) exceeded US$10.447 billion in the first eight months of the current Iranian calendar year (March 21-November 22) to register a 44% increase year on year (YoY), the spokesman of the Islamic Republic of Iran Customs Administration (IRICA) said.

According to Ruhollah Latifi, the volume of trade with the mentioned countries also increased by 34 percent in comparison to the previous year’s same eight months, IRNA reported.

As reported, during the mentioned period Iran traded over 21,778,387 tons of commodities worth US$10.447 billion with ECO member countries including Turkey, Afghanistan, the Republic of Azerbaijan, Kyrgyzstan, Kazakhstan, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

Iran exported 18.631 million tons of commodities worth over US$6.823 billion to the said nations in the mentioned period.

He said major export destinations of the Iranian goods in the said union were Turkey with about US$3.767 billion of imports, Afghanistan with US$1.27 billion, Pakistan with US$764.389 million, and Azerbaijan with US$335.843 million.

As reported, the Islamic Republic’s export to ECO members increased by 46% and 54% as compared to the figures for the previous year in terms of weight and value, respectively.

Meanwhile, the country imported 3,147,332 tons of goods valued at over US$3.623 billion from the ECO member countries, with Turkey, Pakistan, Uzbekistan, Kazakhstan, Azerbaijan, Turkmenistan, Afghanistan, Tajikistan, and Kyrgyzstan being the top sources of imported goods.

The value of Iranian imports from the ECO union also increased by 28% as compared to the previous year’s same time span, the official said.

According to Latifi, more than 23.723 million tons of goods worth US$11.71 billion were traded between Iran and the ECO member countries during the previous Iranian calendar year (ended on March 20), of which the share of exports was 18.419 million tons of goods worth US$6.890 billion and the share of imports from these countries was 5.312 million tons worth US$4.819 billion.

The value of Iran’s non-oil trade during the first eight months of the current year stood at about US$33 billion, Latifi had previously announced.

The Economic Cooperation Organization or ECO is an Asian political and economic intergovernmental organization that was founded in 1985 in Tehran by the leaders of Iran, Pakistan, and Turkey.

 

Iran keen in developing links with neighbors

Deputy Foreign Minister of Iran for Economic Diplomacy Mehdi Safari has said it is a priority to expand economic and trade cooperation with neighbors, saying the Economic Cooperation Organization (ECO) can help achieve this goal.

Safari made the remarks at a meeting with ECO Secretary-General Khosrow Nazeri on the eve of the ECO summit in Turkmenistan, Mehr reported on Wednesday.

ECO includes Iran, Turkey, Afghanistan, the Republic of Azerbaijan, Kyrgyzstan, Kazakhstan, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

At the meeting, the ECO chief presented a report on the process to prepare for the summit in Ashgabat and hailed Iran for its assistance in this regard.

Safari said expansion of economic and trade cooperation with neighbors is a priority of the new Iranian administration and stressed the role of ECO in achieving the goals of member countries.

The top diplomat said a plan by Iran to send a high-level team to the forthcoming summit signifies the prominent position of ECO.

Safari said Iran is ready help ECO members to implement important decisions at the ECO summit in Ashgabat.

Iranian Transport and Urban Development Minister Rostam Qasemi said that positive agreements have been reached with neighboring countries, for expansion of transportation cooperation, especially in the aviation sector, IRNA reported.

Speaking at the ceremony on introducing the new head of Civil Aviation Organization (CAO), Qasemi said, “We recently reached agreements with Turkmenistan and Kyrgyzstan, part of which is related to the development of aviation.”

According to the official, the expansion of transportation cooperation with other countries will lead to the expansion of trade ties and eventually will increase the country’s revenues.

“We have made plans for upgrading our transportation fleet. However, we need effective measures to be taken for the development of the aviation industry,” he stressed.

He further stated that the most important factor in the development of the aviation industry is the use of specialists to promote it, adding: “In order to empower the aviation industry to meet the needs of the country, we need more work to be done, and this capability exists inside the country.”

Elsewhere in his remarks, Qasemi mentioned the needs of other transportation sectors including road, maritime, and rail, and said, “The transport sector needs to modernize its fleet, and we have not yet achieved the goals of the program in the rail, sea, and land sectors.”

Ghasemi pointed to the existing problems in the railway fleet and also the incompleteness of the country’s railway corridors and said, "Conditions in the railway sector are not favorable, the average life of the road transportation fleet is high and in the sea sector, despite high capacities, the capacity of the country’s ports has not been used well."

 

Back Sea Brewing Conflict

Many experts from United States find the whole swath of territory in Eastern Europe, near Russia, very far away and hard to conceptualize. This part of the world involves a number of countries, small and large that is generally neither the most frequently discussed in the US news nor frequented by the US tourists.

To make sense of much of this remote region, it can be helpful to take a perspective that centers on the Black Sea and views that body of water as the key point of reference for much of the region. Doing so not only helps clarify what Russia is up to in its neighborhood, but also shines a spotlight on Chinese activity.

The Black Sea region is best viewed as having three big anchors—Ukraine to the north, Turkey to the south, Russia to the northeast. Then there are three countries on either side of the region—Romania, Bulgaria and Moldova on the left or west, Georgia and Armenia and Azerbaijan to the east.

Turkey, Romania and Bulgaria are NATO allies; the US and NATO’s other twenty-six members (making for a grand total of thirty) are sworn to their defense through a mutual-defense treaty. And even though Ukraine is not a NATO ally, the United States did promise (along with Russia) back in 1994 to help protect its security—which is why the Russian aggression against Ukraine since 2014 has been so concerning.

None of this is to say that the US needs to prepare for war against China, or Russia for that matter, in the Black Sea region. The Black Sea is far from the Chinese coasts; the main military concerns are with China in the western Pacific region.

Moreover, as Chairman of the Joint Chiefs of Staff, Gen. Mark Milley, told a group of people at the Brookings Institution on 2nd December 2020, the US is in a period of great-power competition but it is not in a period of conflict, and the goal should be to keep things that way while competing effectively against Russian and Chinese influence.

Indeed, as with many parts of the world, China does not pose a direct military threat, rather it challenges the US interests in the realms of economics, technology, and espionage. To be specific:

- China is offering loans, through its Belt and Road Initiative, to many countries along a vast periphery and perimeter. This includes the Black Sea. But buyer must be cognizant that China’s money comes with strings. The US needs to help regional countries understand this and so that they can accept any loans with their eyes wide open.

- China’s software and hardware are optimized for intrusive monitoring of the population, Black Sea inhabitants will be monitored if and when they accept Chinese technology, even from private firms, in realms like 5G. China’s civil-commercial-military-intelligence “fusion law” formalizes this; Beijing isn’t even pretending to do otherwise.

- China is actively trying to buy into sectors that have huge security implications. A prime example is the manufacturer Motorsich in Ukraine, which builds high-quality engines for helicopters and aircraft. A struggling Ukrainian economy may make such assets relatively easy pickings for a purportedly friendly but also devious foreign investor

- In general, Chinese infrastructure comes with long-term controlling interests

- Default on Chinese loans results in Chinese ownership of assets—and the default is a distinct possibility when big projects are foisted upon unsuspecting countries with weak economies and a lack of transparency in their investment decisions.

The US can do a lot to help in ways that are already showing promise in other regions around the world. Malaysia and Pakistan, for example, have figured out that they can say no to massive Chinese projects that would bring them little in the way of jobs (since China brings along most of its own workers for Belt and Road projects) and much in the way of debt. A central database that tracks such Chinese efforts, and helps countries do the calculus of pros and cons for each proposed investment before signing any contracts, can go a long way towards defeating such practices.

The US needs to be a part of the leadership in this region. The EU and NATO are important, to complement our diplomacy with both those organizations, the incoming Biden administration should recognize the Black Sea as a region of importance, requiring a focus on diplomacy and economic engagement.

The good news is that war does not have to be the future for the Black Sea. Military support is important, but it is just one of our tools for engagement in this vital region. To avoid bad news, the US must engage effectively, be patient, and sustain its efforts, when it chooses to do. It is time to choose.