The Zangezur Corridor and Iran’s Opportunities

By ipsc

December 23, 2024

Dr. Maryam Viraj Kazemi
Researcher in Geopolitical Affairs
International Peace Studies Center – IPSC

Keywords: Zangezur Corridor, Turkey, Azerbaijan, Iran, Trade, Economy

Introduction

Economic corridors connect economic factors along a specific geography. They provide vital linkages between economic hubs, typically concentrated in urban landscapes, by developing infrastructure such as railways or pipelines. By reducing trade barriers, increasing trade volume, and fostering economic growth, these corridors enhance cooperation and development among neighboring countries. Economic corridors can be designed to attract new investments, boost agricultural production, ensure free access to natural resources, and facilitate their export to global markets. Although economic corridors are not a new phenomenon, their development has intensified in recent years. These corridors cross international borders on nearly every continent, span hundreds of kilometers, and penetrate remote areas (1).

The Zangezur Corridor

Amidst this, the Zangezur Corridor—a geopolitical project connecting Europe to Central Asia and China via Azerbaijan and Turkey—has faced criticism and raised concerns. Zangezur, currently part of southern Armenia, has been a disputed region since World War I. During the Soviet era, this area, situated between the autonomous region of Nakhchivan and Azerbaijan, became part of the Armenian Soviet Socialist Republic. Today, it is the Syunik Province of Armenia.

During the Soviet Union, Moscow built two railways to connect Nakhchivan to the mainland of the Azerbaijan Republic in what Baku now refers to as the Zangezur Corridor—sometimes called the “Nakhchivan Corridor” by Azerbaijani media and analysts. However, these railways became unusable during the First Nagorno-Karabakh War, which began in 1992. Now, Baku plans to restore these Soviet-era railways and construct highways in the region to link Azerbaijan to Nakhchivan. Additionally, this corridor is part of a larger transit project connecting Baku to Istanbul. Essentially, the Zangezur Corridor aims to grant Azerbaijan unrestricted access to its Nakhchivan region without any Armenian checkpoints (2).

Iran’s Concerns and Strategic Opposition

In this context, Iran, which has strong ties with Armenia, does not want to see the Zangezur Corridor operational. Consequently, Tehran is concerned about the potential rapprochement between Armenia, Azerbaijan, and Turkey, viewing Turkey’s land connection with Azerbaijan and its extension into Central Asia as a threat to Iran’s national unity and territorial integrity. Iran also believes that Israel will use this corridor to weaken Iran on its northern borders and isolate it from the South Caucasus. Iranian analysts refer to this route as the “NATO Turanian Corridor,” arguing that Israel, Turkey, and some NATO countries are using it for military and security purposes to consolidate a Turkic alliance against Iran and Russia (3).

However, a key issue is that Tehran seeks to link the Black Sea-Persian Gulf Corridor, which passes through Armenia, to the International North-South Transport Corridor (INSTC), which runs through Azerbaijan. To achieve this, Iran needs direct railway access to Armenia via Nakhchivan. Otherwise, due to the challenging topography, establishing a direct railway link with Armenia would be prohibitively expensive (4).

The Aras Corridor: Iran’s Proposed Alternative

To circumvent this problem, Iran has proposed improving the “Aras Corridor,” a route connecting Azerbaijan to Nakhchivan, as an alternative to Zangezur. Iran anticipates that not only Azerbaijan but also other countries could utilize this route. The Aras Corridor could potentially become part of a broader east-west passage or the Middle Corridor, stretching from Russia and China through Central Asia, the Caucasus, Iran, and Turkey, and extending to Eastern Europe and the UK (5).

The U.S. Stance

However, the United States opposes the Aras Corridor project, fearing that Iran might misuse it for ideological gains, and instead advocates for strengthening the Zangezur Corridor. The U.S. believes that Central Asian countries trading with the outside world via Russia or China should use Azerbaijan as an alternative route. A road passing through Azerbaijan and Armenia could serve as a much larger substitute for existing routes through Georgia and other regions (6).

Iran’s Geo-Economic Advantages

Despite the challenges outlined, Iran possesses strong geopolitical and geo-economic advantages that could turn threats into opportunities. With its robust infrastructure in transportation, ports, airports, logistics, transit terminals, and free trade zones in its three northern provinces (Gilan, Mazandaran, and Golestan)—coupled with Iran’s proximity to the Caspian Sea, the Persian Gulf, and the Sea of Oman—Iran can position itself as a hub for global economic and trade investments. It could establish a branch of the Zangezur Corridor in these provinces to create land links with Turkmenistan, Afghanistan, and China.

Turning Threats into Opportunities

By leveraging the commercial capabilities of its northern border cities (such as Astara, Bandar Anzali, Rasht, Ramsar, Nowshahr, Babol, Sari, Qaem Shahr, Bandar Torkaman, and Gorgan) and planning their development based on their unique geo-economic position in short-, medium-, and long-term programs, Iran can foster constructive economic and trade interactions with neighboring countries (Turkmenistan, Afghanistan) and other regional nations. Shared religious and cultural values could help transform the current tense security environment into one of cooperation.

Such a transit link would serve as a vital artery connecting multiple corridors, including the Southern Corridor, the Europe-Caucasus-Asia Transport Corridor (TRACECA), the Asian Highway Network, the Five Nations Railway, and the North-South Corridor, linking South and Southeast Asian countries to Europe via Pakistan, Afghanistan, and Iran.

Conclusion

Given that the Zangezur Corridor could function as part of the International North-South Transport Corridor and considering the positive stance of NATO and Russia toward opening this corridor, Iran has the potential to become a major trade hub in the Eurasia region, bridging various corridors.

As the geopolitical landscape in West Asia rapidly evolves, if Iran aims to be a true game-changer, it must optimize its multifaceted relations by leveraging its geopolitical and geo-economic advantages, which offer the safest and most efficient routes for international economic corridors.