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Russia Outsmarts Europe with its New Iran-Armenia Trade Route

Ansh Pandey by Ansh Pandey
May 9, 2023
in Europe
Reading Time: 3 mins read
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Russia Outsmarts Europe with its New Iran-Armenia Trade Route
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Iran-Armenia Trade Route: Russia has always been in love with the European market, despite the EU’s detest towards them. It’s a classic case of unrequited love, but that hasn’t stopped Russia from trying to establish new trade routes with Europe. And guess what? Russia has now come up with a new trade route via India, Iran, and Armenia that could outsmart Europe.

According to media reports, Pro-Russia Armenia is about to elaborate on a new Europe-India-Iran transport corridor. The task force’s goal is to develop a new cargo transportation route that will connect the countries of East Asia, India, and Iran with Europe through Georgia and the Black Sea, as an alternative to the North-South international transport corridor. 

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The new Iran-Armenia Trade Route is set to connect Europe with India and East Asian countries through the Indian Ocean. The task force will be headed by the Armenian Minister of Economy, who will have to report to the Prime Minister on a quarterly basis. The group must establish contacts and discuss technical and other issues with relevant departments of India, Georgia, and Iran. 

The first political consultations in a trilateral format between the Foreign Ministries of Armenia, Iran, and India took place on April 20 in Yerevan. The issues discussed included new economic, regional, and communication channels, as well as the prospects for deepening trilateral cooperation in various areas.


An Iran-EU Trade Route

If this plan materializes, the EU will have a new exclusive trade Iran-Armenia Trade Route to ship exports without any new costs. This would undoubtedly be beneficial for the EU. However, the proposal to first connect the Chahabar port with Yerevan and then move straight to the EU is surprising. But, one cannot deny the role that Russia could potentially play in this deal.

Iran wants to sell its oil, but it can’t supply oil directly because of sanctions. Russia is exporting its oil to Iran, which is then getting re-exported. Furthermore, Russia is actively pursuing new economic links with Iran. 

Armenia’s connection and affection with Russia are also well-known. Russia is the monopoly supplier of gas and other energy resources, including nuclear fuel for the Metsamor Nuclear Power Plant, which provides 40 percent of domestic electricity generation.

To add to this, many thousands of Armenian migrant workers reside in Russia, and Russia accounts for 70 percent of money transfers from abroad to Armenia, which reached a record $3.5 billion last year. It’s hard to deny Russian links in this deal, especially since Russian FM Sergei Lavrov came to Armenia and Azerbaijan to resolve the Nagorno-Karabakh Crisis.

Read More: As Armenia-Azerbaijan peace talks begin NATO takes the most desperate step

A Russian Link

This makes the claim of a new Russian trade route more certain. Russia is establishing new links of trade to the EU via various means, like a backdoor entry. The EU may detest Russia, but it cannot deny the benefits of this new Iran-Armenia Trade Route.

The EU may detest Russia, but little do they know, Putin has a plan up its sleeve. With India, Iran, and Armenia all in on this trade route, it’s a veritable dream team that could outsmart Europe at its own game.

Read More: Move Over Saudi-Iran!! Armenia and Azerbaijan have started the Great Caucasian Reset

And let’s not forget about Russia’s active pursuit of economic links with Iran – they’re practically inseparable at this point. And with Armenia’s strong connections to Iran, it’s like they’re all in on the same secret trade route club.

So, while the EU may be shaking their heads at Russia’s shenanigans, it’s hard to deny that they won’t be using this new Iran-Armenia Trade Route to their advantage.

 

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Tags: ArmeniaEconomyEUEuropeIndiaNewsRussiaukraine war
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