The Armenian government granted a $215 million contract to a consortium comprising two Iranian companies to renovate a 32-kilometer segment of the key highway linking Armenia to Iran through the strategic Syunik region. This agreement was signed in Yerevan with the presence of Armenia’s Minister of Territorial Administration and Infrastructures, Gnel Sanosian, and Iran’s Minister of Roads and Urban Development, Mehrzad Bazrpash.

“Armenia can play a key role within the framework of the North-South [road] corridor. I hope the project will be implemented rapidly," Mehrzad Bazrpash said.

Iran and Armenia also discussed the construction of a new border bridge. Mehrdad Bazrpash revealed this development during the signing ceremony held in Yerevan. According to him, more than the current bridge on the Armenian-Iranian border is needed for that large amount of circulation.

“We have reached an agreement to set up a working group related to the construction of the [new] bridge, and we will start discussions for the construction of that bridge,” he said. 

Bazrpash highlighted the potential of the new bridge to enhance economic relations between Armenia and Iran, as well as to facilitate the implementation of other infrastructure projects. He also expressed Iran's readiness to support Armenian companies in various initiatives.

Specifically, he stated, “Any Armenian company willing to engage in housing construction and road construction in Iran, we are ready to assist them with great enthusiasm.”

The existing bridge on the Armenia-Iran border was constructed in 1995 along the Aras River.

Iranian Minister also discussed the potential for Armenia to access external markets through infrastructure projects in the eastern and western regions of the Caspian Sea. He highlighted Iran’s strategic location as a transit route to facilitate the movement of goods and foster regional cooperation. Bazrpash expressed optimism about the future development of relations between Armenia and Iran, suggesting that there will be further positive news in this regard.

According to the Iranian official, his country does not agree with the “Zangezur corridor” being circulated by Azerbaijan.

“We [Iran] have stated many times that we do not agree with the 'Zangezur Corridor,' and in meetings with various officials of Azerbaijan, we have said that we are against it. Our policy is based on peace in the Caucasus, and we condemn any kind of foreign interference. We believe that the countries of the region will be able to make the best decisions themselves,” Bazrpash emphasized.

He also emphasized that Iran has consistently supported Armenia’s territorial integrity and will continue to do so. Additionally, he said that the infrastructures developed between the two countries aim to promote lasting peace in the region.

Meanwhile, Iran will transition to using its national currency for trade operations with Armenia, Russia, and Belarus. Also, Iran՛s customs borders will be open for importing goods from these countries. Kambiz Mirkazemi, a Russian-Iranian Chamber of Commerce member, reported this decision.