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ARMENIA: IRANIAN PRESIDENT'S ABBREVIATED VISIT
Haroutiun Khachatrian
EurasiaNet, NY
Oct 24 2007
The fact that Iranian President Mahmoud Ahmadinejad cut short a visit
to Armenia is not a reflection on the state of Armenian-Iranian
relations, Armenian leaders say. Ahmadinejad's visit laid the
groundwork for an expansion of economic relations, officials in
Yerevan contend.
Ahmadinejad left Yerevan on October 23, almost a day ahead of
schedule. Analysts attributed the abbreviated stay to domestic factors
in Iran. Viktor Soghomonian, Armenian President Robert Kocharian's
press secretary, said the early departure would not have a negative
impact on bilateral ties.
"President Robert Kocharian and President Mahmoud Ahmadinejad managed
to discuss all the issues on the agenda for the Armenian-Iranian
talks," the Arminfo news agency quoted Soghomonian as saying. During
the visit, the two presidents signed cooperation agreements covering
banking and investments, as well as the development of a wind-power
plant in Armenia. In addition, the two countries signed an accord to
open consulates.
According to unconfirmed reports, Iran's Supreme Leader Ayatollah
Ali Khamenei is seriously ill. If true, such a development could have
prompted the Iranian president to cut short his Armenian stay. Other
reports suggested that factional infighting in Tehran has intensified
in the wake of the replacement of Ali Larijani as Iran's top nuclear
negotiator with Saeed Jalil. The move is considered a political
victory for the hardliner faction led by Ahmadinejad. Larijani was
viewed as an independent player in Iranian politics, whereas Jalil
has close ties to the president.
In Yerevan, Ahmadinejad and Armenian officials focused on strengthening
economic relations. To date, the main bilateral achievement has
been the construction of a natural gas pipeline connecting the two
countries. The pipeline was officially inaugurated in March, when
Ahmadinejad paid his first official visit to Armenia.
Soon, a pipeline connecting the southern province of Suynik and the
capital Yerevan will be completed. With the gas pipeline project
behind them, Iran and Armenia are intent on exploring other energy
and transit deals.
"We are talking now about an oil pipeline, and issues concerning
railroads," Gegham Gharibjanian, Armenian deputy foreign minister
told reporters on October 23. The sides are also mulling the
construction of an oil refinery in southern Armenia. Russia would
also be a participant in the project, in which Iranian crude would
be processed at the Armenian facility. According to the Arminfo news
agency, the refinery project is "now at the stage of technical and
economic feasibility studies."
A refinery deal could have a cascade effect for bilateral economic
ties. For example, it could provide a rationale for the construction
of a new rail link between the two countries. The only existing
railroad binding the two countries passes through the Azerbaijani
territory of Nakhichevan, and it is thus inoperable due to the lack
of a Nagorno-Karabakh peace settlement.
An October 22 statement signed by Ahmadinejad and Kocharian did not
delve into details about bilateral economic and political cooperation,
and instead focused on generalized statements concerning regional
stability. In particular, it did not mention a possible free-trade
agreement. During a visit in July, Iranian Foreign Minister Manucher
Mottaki suggested that a free-trade pact could be ready for signing
within two months.
The only concrete trade development was announced shortly before
Ahmadinejad's arrival, as Iran decided to expand transit privileges
for Armenian traders. According to an announcement by the Armenian
Ministry of Transport and Communications, Armenian trucks will now
have the right to transport goods across Iranian territory to Iranian
ports at Bandar Abbas on the Persian Gulf and Enzeli on the Caspian
Sea. Previously, Armenian entrepreneurs could ship goods across Iran
only in Iranian vehicles.
Despite the lack of progress on a free-trade agreement during the
Iranian president's visit, Grigor Kocharian, a top official at the
Armenian Ministry of Trade and Economy, remained upbeat. He indicated
that delegations from both countries would meet soon to discuss
outstanding issues.
Editor's Note: Haroutiun Khachatrian is a Yerevan-based writer
specializing in economic and political affairs.
From: Emil Lazarian | Ararat NewsPress
Haroutiun Khachatrian
EurasiaNet, NY
Oct 24 2007
The fact that Iranian President Mahmoud Ahmadinejad cut short a visit
to Armenia is not a reflection on the state of Armenian-Iranian
relations, Armenian leaders say. Ahmadinejad's visit laid the
groundwork for an expansion of economic relations, officials in
Yerevan contend.
Ahmadinejad left Yerevan on October 23, almost a day ahead of
schedule. Analysts attributed the abbreviated stay to domestic factors
in Iran. Viktor Soghomonian, Armenian President Robert Kocharian's
press secretary, said the early departure would not have a negative
impact on bilateral ties.
"President Robert Kocharian and President Mahmoud Ahmadinejad managed
to discuss all the issues on the agenda for the Armenian-Iranian
talks," the Arminfo news agency quoted Soghomonian as saying. During
the visit, the two presidents signed cooperation agreements covering
banking and investments, as well as the development of a wind-power
plant in Armenia. In addition, the two countries signed an accord to
open consulates.
According to unconfirmed reports, Iran's Supreme Leader Ayatollah
Ali Khamenei is seriously ill. If true, such a development could have
prompted the Iranian president to cut short his Armenian stay. Other
reports suggested that factional infighting in Tehran has intensified
in the wake of the replacement of Ali Larijani as Iran's top nuclear
negotiator with Saeed Jalil. The move is considered a political
victory for the hardliner faction led by Ahmadinejad. Larijani was
viewed as an independent player in Iranian politics, whereas Jalil
has close ties to the president.
In Yerevan, Ahmadinejad and Armenian officials focused on strengthening
economic relations. To date, the main bilateral achievement has
been the construction of a natural gas pipeline connecting the two
countries. The pipeline was officially inaugurated in March, when
Ahmadinejad paid his first official visit to Armenia.
Soon, a pipeline connecting the southern province of Suynik and the
capital Yerevan will be completed. With the gas pipeline project
behind them, Iran and Armenia are intent on exploring other energy
and transit deals.
"We are talking now about an oil pipeline, and issues concerning
railroads," Gegham Gharibjanian, Armenian deputy foreign minister
told reporters on October 23. The sides are also mulling the
construction of an oil refinery in southern Armenia. Russia would
also be a participant in the project, in which Iranian crude would
be processed at the Armenian facility. According to the Arminfo news
agency, the refinery project is "now at the stage of technical and
economic feasibility studies."
A refinery deal could have a cascade effect for bilateral economic
ties. For example, it could provide a rationale for the construction
of a new rail link between the two countries. The only existing
railroad binding the two countries passes through the Azerbaijani
territory of Nakhichevan, and it is thus inoperable due to the lack
of a Nagorno-Karabakh peace settlement.
An October 22 statement signed by Ahmadinejad and Kocharian did not
delve into details about bilateral economic and political cooperation,
and instead focused on generalized statements concerning regional
stability. In particular, it did not mention a possible free-trade
agreement. During a visit in July, Iranian Foreign Minister Manucher
Mottaki suggested that a free-trade pact could be ready for signing
within two months.
The only concrete trade development was announced shortly before
Ahmadinejad's arrival, as Iran decided to expand transit privileges
for Armenian traders. According to an announcement by the Armenian
Ministry of Transport and Communications, Armenian trucks will now
have the right to transport goods across Iranian territory to Iranian
ports at Bandar Abbas on the Persian Gulf and Enzeli on the Caspian
Sea. Previously, Armenian entrepreneurs could ship goods across Iran
only in Iranian vehicles.
Despite the lack of progress on a free-trade agreement during the
Iranian president's visit, Grigor Kocharian, a top official at the
Armenian Ministry of Trade and Economy, remained upbeat. He indicated
that delegations from both countries would meet soon to discuss
outstanding issues.
Editor's Note: Haroutiun Khachatrian is a Yerevan-based writer
specializing in economic and political affairs.
From: Emil Lazarian | Ararat NewsPress