In a bid to emerge as a key transport hub, Azerbaijan has offered $500 million to Iran for its extended rail network linking central Asia, Europe, Georgia and Turkey, reported Bloomberg.
Maxim Sokolov, Russian Transport Minister, said: “If the rail link to Iran is built, it can take some share of the cargo that’s being transported via Suez.”
Hoping to tap into the trading power of the Suez Canal, Russia and Iran have come to an agreement to create stronger transport links, which, as a result of the funding, will now be along the Azerbaijan border.
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Azerbaijan and Iran have had a contentious relationship from the late twentieth century, with tensions rising after the split of the Soviet Union.
Iran previously faced limitations with regards to sanctions as a result of its refusal to halt its nuclear development following its revolution in the 1960’s; this included a halt in oil trade
Since the trade sanctions against Iran were lifted in early 2016, Iran has seen many of its economic relationships restored, including the signing of a collaboration with Port of Antwerp in July.
PTI reported in February, 2016 that Russia was also planning to extend its trade routes through the Arctic.
