rfmcdonald | [LINK] "Armenia as a bridge to Iran? Russia won't like it" (Reply)

In an Al Jazeera opinion piece, Richard Gagosian argues that while Armenia is well-positioned to benefit from the opening up of post-sanctions Iran, Russia is not likely to welcome anything that could weaken Armenian dependence on Russia.

[I]n the wake of the recent Western-brokered nuclear deal with Iran, Armenia is now looking to position itself as a "bridge", or at least a platform, for engaging Iran. And it is geography - not geopolitics - that now counts the most in determining whether Armenia can exploit its position.

There are several advantages for Armenia, ranging from a cheap, educated workforce to low transport costs stemming from reliable infrastructure links. Perhaps most importantly, Armenia is one of the few stable neighbours of Iran, with a deep degree of stability and a long record of close and cooperative relations.

More recently, with several high-level visits of Armenian officials to Iran this year, and the planned visit to Armenia by the Iranian president, there is renewed interested in expanding trade and transport ties. The possible construction of a second twin gas pipeline has also resurfaced as a strategic priority for both countries as well.

On a smaller, yet more realistic scale, Armenia is also eager to expand its existing exports of surplus electricity to Iran. For years, as the only country in the region with a nuclear power plant, Armenia has sold electricity to neighbouring Georgia and Iran.

Iran is also keenly interested, as the planned expansion of the power grid would also link Iran to the Georgian network as well. This has also recently driven Iran to pledge to invest some $91m as its share in the $117m project. This is further supplemented by the development of hydroelectrical projects aimed at bolstering Armenian energy exports to Iranian consumers.