Azerbaijan forming new economic map of the South Caucasus

Seymur Mammadov is the director of the international expert club EurAsiaAz

and Editor-in-Chief of the Baku Tribune.

After the end of the Second Karabakh War, there was a certain calm and stability
in the South Caucasus region. Azerbaijan returned under its control most of its
territories, which had been under the control of the Armenian Armed Forces for
almost 30 years. Now is the time to think about how to ensure peace and stability
in this region in the long term. The only solution to this problem is economic and
regional cooperation, which can eliminate political differences between Azerbaijan
and Armenia. Here, it will be appropriate to remind about one important point of
the trilateral agreement on Karabakh, according to which all economic and
transport links in the region are unblocked. “The Republic of Armenia guarantees
the safety of transport links between the western regions of the Republic of
Azerbaijan and the Nakhichevan Autonomous Republic in order to organize the
unimpeded movement of citizens, vehicles and goods in both directions. The
control over transport communication is carried out by the bodies of the Border
Service of the FSB of Russia,” the paragraph says.
We are talking about the Zangezur transport corridor, after the launch of which not
only Azerbaijan and Armenia, but also Russia and Turkey will remain in the
geopolitical gain. This transport corridor is designed to connect the Nakhchivan
Autonomous Republic with Azerbaijan through the territory of Armenia
(Nakhchivan is an autonomous enclave of Azerbaijan on the territory of Armenia
since the times of the USSR). During the Soviet period, the South Caucasus region
had a developed road network from Russia to Iran and Turkey through Azerbaijan
and Armenia, passing through Nakhchivan. The Zangezur transport corridor allows
connecting Azerbaijan, Armenia and Russia with Iran and Turkey by direct land
communication. Earlier, back in the Soviet period, large regional transportation
between Russia, Iran and Turkey was carried out along this corridor. The basis of
the Zangezur transport corridor is the railway, which previously connected
Nakhchivan, Yerevan and Baku. What dividends does the launch of the Zangezur
transport corridor promise the South Caucasus and regional players?
First, Azerbaijan receives a transport corridor to Turkey, and this creates a
favorable environment for intensifying communications in the implementation of
military-political and infrastructure projects. Secondly, official Baku gets a certain
influence on the political processes in Armenia, first of all, in matters related to the
Armenian-Azerbaijani conflict.
For Armenia, the Zangezur transport corridor is the prospect of a number of roads
from Armenia to both Russia and the Persian Gulf. Armenia receives rail links
with Iran and Turkey. The restoration of this corridor facilitates the access of
Armenian goods to the markets of the Eurasian Economic Union, of which it has
been a member since January 2015. Because the railway, which is the basis of the
Zangezur transport corridor, is the only and shortest land transport link between
Russia and Armenia. As a result of the First Karabakh War, in 1993 the railway
was closed, which led to a land blockade of Armenia from Russia. And now, after
thirty years of blockade, transport links are being restored.
For Turkey, the Zangezur transport corridor means access to the Caspian Sea, to
the countries of Central Asia and China through Azerbaijan, bypassing the roads of
Iran and Georgia.
For Russia, the launch of the Zangezur corridor also promises good dividends.
First, it is the unblocking of land communications with Armenia. Secondly, it is an
additional overland route to the markets of the Middle East, primarily to Turkey
and Iran.
Iran, which was a logistic alternative to the Zangezur transport corridor, received
good income from transit, thereby maintaining its influence on Azerbaijan. Now
this influence is diminishing and everything that Tehran loses is flowing over to
Russia and Turkey.
In addition, the Zangezur transport corridor has good prospects for being integrated
into the Chinese initiative «One Belt, One Road».
Thus, the Zangezur transport corridor is becoming a powerful stabilizing factor in
the region, increasing the importance of Azerbaijan, Armenia, and creating a zone
of compromise for the geopolitical aspirations of Russia, Turkey and Iran. On the
other hand, the initiative to open the Zangezur transport corridor belongs to
Azerbaijan. And as a result of this initiative, a new transport map is being formed
in the South Caucasus region. It is no coincidence that after gaining independence
Azerbaijan created important transport corridors connecting Asia and Europe.
Transport corridors North-South, East-West, initiated by Azerbaijan, play an
important role in intercontinental cargo transportation. Now this list is being
replenished with one more transport corridor.