Armenia and Iran Discuss Strategic Program “Syunik – Economic Hub of the South Caucasus”

YEREVAN – The head of the Iran-Armenia Cooperation Development Fund, Pouya Hosseini, and Armenian Economy Minister Gevorg Papoyan met Monday in Yerevan to discuss the “Syunik – Economic Hub of the South Caucasus” program.

The initiative aims to develop the Syunik region into a regional economic hub by attracting private investment, improving infrastructure, and expanding economic cooperation between Armenia and Iran.

The program will feature various activities, including bilateral professional conferences, business visits, and presentations of investment packages.

Papoyan and Hosseini exchanged views on the next steps and discussed potential state support for the program’s implementation.

This ambitious project seeks to transform Armenia’s southern Syunik province into a vital economic hub linked to the North-South Corridor. It envisions large-scale development of transportation links, industrial zones, and investment attraction mechanisms. The plan aims to strengthen 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 the project as a counterbalance to demands from Baku and Ankara for Armenia to provide a transport corridor through Syunik, linking mainland Azerbaijan with its Nakhichevan exclave and Turkey via Armenia—at the cost of Yerevan’s control over the province. Tehran has consistently opposed this proposal.

For Armenia, the project represents an opportunity to enhance the economic self-reliance of its southern regions and deepen ties with Iran. According to Armenia’s Statistical Committee, bilateral trade with Iran reached $737.4 million in 2024, a 6.5% increase from the previous year. Tehran aims to raise trade volume to $1 billion by the end of this year.