Iran–Azerbaijan joint Economic Committee meeting opens in Baku

February 23, 2026 - 15:43

TEHRAN – The seventeenth meeting of the Iran–Azerbaijan Joint Economic Committee opened in Baku on Monday, focusing on transport links, border infrastructure and broader economic and cultural ties.

Farzaneh Sadegh, Iran’s minister of transport and urban development, and Shahin Mustafayev, Azerbaijan’s deputy prime minister, are co-chairing the two-day meeting in the Azerbaijani capital.

Amin Taraffo’, director general for international affairs at Iran’s Ministry of Transport and Urban Development, said discussions would cover all areas of bilateral cooperation, with a focus on programs to be implemented by next year. The final agreements are to be signed in the form of a memorandum of understanding by the heads of the two delegations.

Review of new railway infrastructures and joint oil fields

Iranian minister of transport and urban development met with the president of the Republic of Azerbaijan to discuss the review of new railway infrastructures and joint oil fields, the development of transportation cooperation, the utilization of new border infrastructures, and cooperation in the energy sector.

Farzaneh Sadeq, on Monday morning (February 23) before the start of the 17th meeting of the Iran-Azerbaijan Joint Economic Committee, met with Ilham Aliyev, the president of Azerbaijan. During this meeting, she conveyed the greetings of Masoud Pezeshkian and stated that the president of Iran places special importance on relations with the Republic of Azerbaijan.

Emphasizing the historical, religious, and cultural ties between the two countries and the importance of bilateral relations, the minister discussed the most important priorities for bilateral cooperation in the economic fields, which were also emphasized by the president of Azerbaijan.

The development of cooperation in the transportation sector, particularly strengthening regional connections and transit corridors, was one of the most important topics of the discussion. Furthermore, expanding energy cooperation, utilizing new border infrastructures, and constructing new railway infrastructures between the two countries were other subjects raised during this meeting.

The two sides also exchanged views on the joint oil fields in the Caspian Sea and the method of extracting resources from these fields, as well as the development of bilateral and multilateral regional cooperation with neighboring countries in the fields of transportation and energy.

In this meeting, it was emphasized that the results of the discussions held within the framework of the 17th Joint Economic Committee meeting should be finalized and new agreements between the two countries should be drafted and signed.

It is noteworthy that in this meeting, Ilham Aliyev, the president of the Republic of Azerbaijan, while thanking for the message from Masoud Pezeshkian, the president of Iran, expressed his satisfaction with the expansion of bilateral relations and emphasized: "The projects implemented jointly by Iran and the Republic of Azerbaijan will provide extensive opportunities for both countries as well as the region."

Transport corridors and border projects in focus

Officials described transport and the development of shared border infrastructure as central pillars of Tehran–Baku relations, citing progress over the past 18 months in both rail and road connectivity.

Talks are expected to address joint projects including the completion and inauguration of the Kalaleh–Aghband bridge, development of the Aras corridor, widening of the 107-kilometer Kalaleh–Jolfa road, construction of the Kalaleh–Siyahroud railway, and cooperation on the Khoda Afarin and Giz Galesi dam and power plant projects.

The sides will also assess implementation of commitments made at the previous commission meeting in Tehran and review customs and land transport procedures with a view to removing bottlenecks and accelerating trade flows.

Transit targets and broader cooperation

Transit cooperation under the International North–South Transport Corridor (INSTC) will be another key topic, including a target of reaching 15 million tons of transit cargo by 2030 along the corridor’s western branch linking Iran, Azerbaijan and Russia.

Trade expansion, efforts to finalize a preferential trade agreement, energy cooperation in gas, electricity and oil, and collaboration in tourism — particularly health tourism — are also on the agenda.

On the sidelines of the meeting, Sadegh is scheduled to hold separate talks with Azerbaijani ministers to discuss ways to deepen bilateral economic and infrastructure ties.

Officials from both countries expressed hope that the commission’s decisions would translate into tangible benefits for businesses and citizens, strengthening economic, transit and cultural exchanges between Tehran and Baku.

Back in October 2025, Farzaneh Sadegh announced that Iran, Russia, and Azerbaijan had finalized a comprehensive roadmap to increase the volume of goods transiting among the three nations to 15 million tons annually. The plan, she said, marks a major milestone in efforts to strengthen regional connectivity through the International North–South Transit Corridor (INSTC).

Speaking to reporters after attending trilateral and bilateral meetings in Baku on October 12, 2025, Sadegh described the gathering as “highly effective and long-awaited,” emphasizing that the new roadmap would help resolve logistical bottlenecks and enhance coordination across multiple transport sectors.

She underlined that the Rasht–Astara railway project remains the “missing link” in the corridor, and completing it is key to unlocking the full potential of the INSTC. “Land acquisition for the remaining sections will be completed by the end of this year, and we expect significant physical progress within the next three years,” she said.

Sadegh added that the meetings also focused on streamlining customs procedures, improving border infrastructure, and enhancing truck and rail traffic between the three nations. Customs representatives discussed plans to establish a shared digital platform to simplify clearance processes and improve coordination among border authorities.

The minister proposed that Iran, Russia, and Azerbaijan jointly develop an action plan within three months to achieve the 15-million-ton target by 2030. “The document will be signed at the next summit of the three countries’ leaders,” she noted, describing it as a blueprint for transforming regional trade routes into a reliable and efficient logistics network.

Sadegh also revealed ongoing efforts to launch scheduled freight trains along the western branch of the corridor and offer preferential tariffs to attract more cargo. “Consistency and predictability in logistics services are essential to achieving our targets,” she said.

In her bilateral meeting with Azerbaijan’s Minister of Transport and Digital Development Rashad Nabiyev, Sadegh highlighted the growing momentum of cooperation between Tehran and Baku, noting that transport issues have become a core focus of the Joint Economic Commission. “We have had the most frequent exchanges with Azerbaijan in the past year, which shows the strategic importance of these ties,” she said.

She emphasized the need to form joint technical committees to address problems faced by Iranian carriers at Azerbaijani border crossings and to work toward practical solutions in upcoming meetings.

The discussions also covered major projects such as the Kalaleh–Aghband border bridge and the Iran–Azerbaijan–Georgia corridor, which are expected to significantly expand trade and transit opportunities once completed.

Sadegh invited Nabiyev to visit Iran for continued discussions, while the Azerbaijani minister welcomed Iran’s proposals and reaffirmed Baku’s readiness to cooperate in resolving obstacles to transportation and trade.

Sadegh concluded that the agreements reached in Baku will accelerate progress toward the shared goal of achieving 15 million tons of transit by 2030, strengthen Iran’s position as a regional transport hub, and deepen the partnership among the three neighboring countries.

EF/MA