News - Armenia can become important transit link between the West and the East, economy minister of says

Within the framework of its Crossroads of Peace project, Armenia is ready to become an important transit link between the EU and Iran, as well as between the West and the East. Armenia's Minister of Economy Gevorg Papoyan stated this during a panel discussion on cooperation between Iran and the Eurasian Economic Union (EAEU) within the framework of the third Eurasian Economic Forum in Yerevan. The minister reminded that Armenia is the only EAEU country that has a land border with Iran. "When global trade faces many problems, from geopolitical tensions to global logistical disruptions, Armenia can become a unique hub, contributing to deepening the expansion of ties in the Eurasian area. According to the statistical committee of Armenia, the trade between Armenia and Iran is about $700 million, the export to Iran is about $100 million, and the import is $600 million. These numbers testify to the positive dynamics of economic relations between the [two] countries; they include such important branches as agriculture, industry," the economy minister recalled. According to him, the signing of the agreement on the creation of a free-trade zone between Iran and EAEU became a very important event, which will give Armenia a unique opportunity to export a number of products, such as mineral water, chocolate, honey, etc., and the lifting or reduction of customs duties will be a serious incentive for exports to Iran; moreover, the demand for Armenian products is growing there. The minister stated that guided by the agreement reached between the prime minister of Armenia and the president of Iran, the parties strive to increase the trade of their goods to $1 billion, and in the future—to $3 billion. "The goal is ambitious. To achieve that, we need to increase the assortment and improve the logistics infrastructure," Papoyan said. In this context, the economy minister reminded about the Crossroads of Peace project of the Armenian government, the purpose of which is to ensure the fast and reliable connection of the Indian Ocean with the Black Sea via the Chabahar Port in Iran. "The route is very important not only for Armenia, but also for India, which seeks to diversify its supplies. From the port of Mumbai, the cargo will go to Chabahar, then by land to the ports of Georgia, Romania, Bulgaria, Greece, and then to the EU. It will reduce costs by a quarter and shorten the delivery period by 25 days," he said. Also, Papoyan reminded that Iran opened its trade center in Yerevan Monday. It will have 107 pavilions for various industries, it will also provide consulting and marketing services to companies, promote bilateral economic cooperation, and strengthen the role of Armenia as an important window for Iranian businesses in the EAEU market.