Civilnet
By Alexander Pracht
The head of the Iran-Armenia Cooperation Development Fund, Pouya Hosseini, presented a strategic economic initiative to Armenian Economy Minister Gevorg Papoyan on Monday. The ambitious project aims to transform Armenia’s southern Syunik province into a regional economic hub linked to the so-called North-South Corridor.
It envisions large-scale development of transportation links, industrial zones, and investment attraction mechanisms. The plan is geared toward strengthening Armenian-Iranian economic ties while positioning Syunik as a key gateway between Iran and the Russian-led Eurasian Economic Union, bypassing routes through Turkey and Azerbaijan.
Iran views it as a counterbalance to the demand by Baku and Ankara for Armenia to provide a transport route through Syunik, linking mainland Azerbaijan with its Nakhichevan exclave and Turkey through Armenia, at the expense of Yerevan’s control over the province. Tehran has consistently opposed this initiative.
For Armenia, the project would be an opportunity to boost the economic self-reliance of its southern regions and deepen ties with Iran. According to the country’s Statistical Committee, bilateral trade with Iran reached $737.4 million in 2024, up 6.5% from the previous year. Tehran aims to increase the trade volume to $1 billion by the end of this year.
Since 2021, Syunik has been targeted by Azerbaijani attacks on numerous occasions, including the major incursion in September 2022. Several weeks later, Iran opened its consulate in the region, the first country to do so. This move was interpreted by various experts as a clear indication of Iran’s support for Syunik remaining under Armenian control.
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