Armenia, Iran Working Towards Creating Free Economic Zone

YEREVAN – The Armenian and Iranian governments are currently in the process of creating a free economic zone in Armenia’s southern Meghri region, Yerevan’s Minister of Economy Artsvik Minasyan said on August 25.

According to Minasyan, the proposed zone will stimulate relations between Iran and the Russian-led Eurasian Economic Union (EEU), which Armenia joined in January 2015.

The goods produced in the two countries will also enjoy preferential trade regimes as Armenia has established with the EU, United States, Canada, Switzerland, and Japan, RFE/RL reported.

Armenian Prime Minister Hovik Abrahamyan announced the plans for the zone on August 22, adding that production and the export of goods would be carried out from the zone.

Tehran is particularly interested in developing closer ties with Armenia as it will allow Iran to establish joint ventures with EEU member states and start exporting goods to the common market.

Iran has in recent months moved quickly to capitalize on its re-established access to international markets after being placed under strict economic sanction for more than a decade.

International businessmen from the West and the EEU have flocked to Iran since Tehran agreed to a deal on its nuclear development program.

Foreign businesses operating in the region consider Iran to be a potential investment cash cow due to its vast economic potential.

By Nicholas Waller