2 December 2002 – Iran and Azerbaijan expressed their readiness to boost bilateral co-operation in the field of energy. Managing director of the Azerbaijan Electricity Company Etebar Prordiev and Iranian Deputy Energy Minister Mohammad Ahmadian discussed ways of boosting bilateral ties in a meeting Saturday.

The two sides inked a deal on the transfer of the Iranian electricity to Azerbaijan. Under the deal, three lines of 230 kV and 400 kV would be created doubling the electricity exchanges between the two countries. Iran is also to set up a power plant in Azerbaijan.

The two sides expressed willingness to strengthen the bilateral co-operation in all political, economic and trade areas. Iran and Azerbaijan recently inked an agreement to boost economic co-operation at the end of the fifth session of the Iran-Azerbaijan joint economic commission on October 29-30 in Baku. Under the agreement, the two sides pledged to work together on the exploitation of the energy deposits, transportation, car manufacturing, electricity and road building. Iran is to export some 300-350 cubic meters of natural gas to Nakhichevan annually.

Separately, Russia said it was considering using Azerbaijan as a transit stage in exporting electricity.

Russian Energy Minister Igor Yusufov said his country can also increase its electricity exports to Azerbaijan by 1 bn kWh on condition that the Russians take part in building up Azerbaijani infrastructures, namely building a transmission line, modernizing power plants, and supplying equipment.

He said the new infrastructure would enable Russia to supply additional volumes of electricity together to the markets of third countries, for example to Turkey.