Sevak Sarukhanyan: “Armenia cannot be even a medium-sized player on the Iranian market”

Susanna Petrosyan, Yerevan. Exclusively for Vestnik Kavkaza
Sevak Sarukhanyan: “Armenia cannot be even a medium-sized player on the Iranian market”

Recently the six international mediators and Iran have reached an agreement on the nuclear program in Vienna – sanctions against Tehran will be eased. The Yerevan authorities welcomed the agreement, and the Foreign Minister of Armenia, Edward Nalbandyan, expressed hope that the agreements reached will become an additional impetus for extension of trade and economic cooperation between Armenia and Iran and implementation of joint projects.

Sevak Sarukhanyan, a political scientist, an expert on Iran, answers Vestnik Kavkaza’s questions on the influence of the agreement on further cooperation between Armenia and Iran.

-       Do you agree with the view that the agreements reached between the mediators and Iran open new opportunities for the Armenian economy? If so, what are main spheres and projects for the Armenian side in this context?

-       This is not about new significant spheres. Sanctions against Iran will be eliminated. In general, the country will return to the pre-sanctions period before 2010. It should be noted that, neither before 2010 nor after it did Armenian-Iranian economic relations develop rapidly.

-       Today some Armenian mass media make forecasts that Russia will try to isolate Armenia from joint Armenian-Iranian projects to keep it under Moscow’s influence. Are these views realistic?

-       In theory, we can discuss various directions. As for the reality, it is more trivial. We should realize clearly that even if Armenia is given “the green light” in relations with Iran, Armenia itself is a country with rather limited economic opportunities. Armenia cannot become even a medium-sized player on the Iranian market. Moreover, the structure of the Armenian economy doesn’t require the big range of goods which could be supplied by Iran.

-       Is it possible that some Armenian-Iranian project will cause interest of members of the Eurasian Economic Union? President Serzh Sargsyan mentioned in his speech at the joint summit of the BRICS, EAEU and SCO in Ufa that the construction of the Armenian-Iranian railway could provide access for the countries of the Eurasian Economic Union through the Persian Gulf to the Indian Ocean.

-       I cannot say anything certain. I can only note that implementation of such a huge project as the railway from Iran to Armenia demands many years of talks, as well as agreements, calculations, and so on. We shouldn’t expect a quick realization of the project.

-       Armenian officials always repeat that Armenian-Iranian economic relations are weaker than political ones. What steps should be taken by the Armenian side to improve the economic relations?

-       I wouldn’t say that the economic relations are weaker than the political ones. The fact is that the economic contacts have reached some peak, after which a new level can appear only in the course of time. Once we needed the  Iran-Armenia gas pipeline, and it was constructed. There was a need to establish electricity power exchange, and the problem was solved. Today there are no major mutually beneficial projects. But they can appear over time. However, structural changes in the Armenian and Iranian economies are needed for this.

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