The Caucasus region has consistently attracted Iran’s attention both as extension of the territory and as a sphere of influence. The Islamic Republic of Iran has extensive economic cooperation with the South Caucasian republics including Armenia. Fertile grounds for extended economic cooperation between the two nations include Armenia’s needs in energy, transportation, industries and mines, and labor force on the one hand and Iran’s suitable location, possession of advanced technology, and vast network of roads. The authors deal with the opportunities for and obstacles to the expansion of ties between the two countries.
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