Economist: An economic subregion being created between the EU, Middle East

“The geopolitical and geo-economic situation is changing in the region, conditioned by the growing influence of Iran and the West. This implies new international transport routes to be formed,” economist Ashot Eghiazaryan told reporters at a press conference.

To the speaker’s words, Iran is interested to reach European markets through the Black See, while the EU seeks to reach Iran through the Caucasus.

“With this regard, Armenia and Georgia may serve important hubs for the transit route. It is no coincidence, that other Black See countries, like Bulgaria and Greece, are involved in the initiative. As a matter of fact, new economic subregion is created between the EU and the Middle East,” noted the economist, suggesting next Russia is not interested in Iran’s entry into the region.

Eghiazaryan said Armenia had been previously left out of the regional projects, since those were energy routes, not transport ones. 
“That happened also due to discriminatory approach adopted by Turkey and Azerbaijan toward Armenia,” the expert maintained.

Since Armenia is a state with no access to see, it has limited opportunities. To Eghiazaryan, one way to overcome that limitation is through developing transport infrastructure.

At the same time Armenia faces certain problems to overcome those constraints. The country is unable to construct railway with Iran, which is not competitive with highways. Alternatively, Armenia and Georgia are members to different unions, with differing regulations, which may create legal barriers.