Araştırma Makalesi

“According to diplomatic sources, the Iranian side has been more 
cautious in granting loans to Armenia. Thus, Mazaheri said that if Armenia 
provides appropriate guarantees, reforms in the field of taxes, justice, and 
investment, the private companies of Iran will undertake to provide the necessary 
funds for the construction of power plants from domestic and international 
sources” (Azerbaycan Dış İşleri Bakanlığı Arşivi, 2003/8, p.37). 
The Islamic Republic of Iran considered it possible to raise funds after a long 
process. It was clear that Armenia, which was an outpost of Russia and whose 
economic dependence on this state was growing day by day, did not have the 
opportunity to provide guarantees. Given the country's corrupt political leadership, 
tax, justice, and investment reforms could be seen as a conspiracy by the political 
establishment itself. The next point was that Iran did not emphasize the allocation 
of any funds from the state budget, but the fact that private Iranian companies could 
invest. 
The Iranian and Armenian energy ministers, Bitaraf and Movsesyan, also discussed 
the construction of a wind farm, the construction of which was agreed in 2002 
(
Azerbaycan Dış İşleri Bakanlığı Arşivi, 2003/8, p.37). 
As noted in the previous chapter, one of the projects of interest to Armenia was the 
Turkmen gas issue, which formed the basis of the Armenia-Iran-Turkmenistan 
cooperation format. In the first years after the declaration of independence, Russia 

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Kelbizadeh, E.
Güz/Fall 2022 
Cilt 12, 
Sayı 2, ss. 37-51 Volume 12, Issue 2, pp. 37-51 
47 
became the main seller of natural gas to Armenia. Natural gas from the Russian 
Federation was also supplied to Armenia through Georgia. Armrosgazprom, a 
subsidiary of Russia's Gazprom, was established in 1997, and the company has a 
monopoly on Armenia's natural gas supply. 80 percent of the company's shares 
belonged to Russia's Gazprom and 20 percent to Armenia's Ministry of Natural 
Resources and Energy (Mesamed, 2015, p. 95). Armenia, which wants to reduce its 
dependence on Russian gas and create alternatives, intensified talks with 
Turkmenistan in 2001. At that time, a preliminary agreement was reached between 
Armenia and Turkmenistan on the purchase and sale of natural gas, and even the 
price of natural gas was set (
Azerbaycan Dış İşleri Bakanlığı Arşivi, 2001/ 11, p. 
62). In early 2004, Armenian Energy Minister A. Movsesyan noted that the 
possibility of building an Iran-Armenia gas pipeline, which could be considered an 
important route for the transportation of Turkmen gas to Armenia, is very close to 
reality. However, during a visit to Armenia, Russian Deputy Prime Minister Boris 
Aleshin said that the country's strategy for natural gas supply should be evaluated 
in the context of Armenian-Russian cooperation in the field of energy. This could 
also be considered as an indirect protest of Russia against the replacement of 
Russian gas with Iranian and, in the future, Turkmen gas. On the other hand, the 
US's lack of interest in securing the flow of Iranian gas prevented the 
implementation of this plan. 
In June 2005, the Minister of Energy of the Islamic Republic of Iran Habibullah 
Bitaraf and the Minister of Energy of Armenia Armen Movsesyan signed a 
memorandum of cooperation in the field of energy (Soltan, 2005, p. 54). 
The issue of the construction of power plants and exploitation of hydropower 
resources on the Aras River, the border river between the two countries, was also 
directly related to the construction of the gas pipeline. The initial agreement was 
signed on March 19, 2007. "Agreement between Armenia and the Government of 
the Islamic Republic of Iran on cooperation in the construction and operation of 
power plants on the Araz River" consisted of 13 articles (Armenian Republic Legal 
İnformation System, 2008/48122, p. 1). In the preamble of the agreement, the power 
plants to be built were to be located in Mehri on the part of the Republic of Armenia 
and the territory of the Garachilar village on the part of the Islamic Republic of Iran. 
According to the second article of the contract, the construction work was to start 
in 2007 and be completed within 6 years. The third article stated that each party 
would finance the construction of a hydropower plant on its territory. The parties 
undertook to work together for the study and construction of structures related to 
the construction of hydropower plants on the Aras River, to jointly ensure the safety 
of the area during construction and operation. A separate agreement was envisaged 
between the parties to regulate the import of materials and equipment for the 
construction of power plants and forms of movement of citizens of the two countries 
along the border between the Republic of Armenia and the Islamic Republic of Iran. 
Armenia and Iran also undertook to cooperate in the maintenance and overhaul of 

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Çankırı Karatekin Üniversitesi 
İktisadi ve İdari Bilimler 
Fakültesi Dergisi 
Cankırı Karatekin University 
Journal of the Faculty of Economics 
and Administrative Sciences 
dams, tunnels, power plants, and machinery, and to provide mutual services 
following these regulations (
Armenian Republic Legal İnformation System, 2008/ 
48122, p. 2). 
On December 15, 2008, the 8th meeting of the Armenian-Iranian Intergovernmental 
Commission was held to discuss the construction of a hydroelectric power plant on 
the Aras River, the construction of the third Iran-Armenia high-voltage power line, 
and the establishment of an oil refinery and oil storage facility in Armenia. The 
memorandum signed at the end of the meeting expressed intentions for future 
cooperation in energy, transport, communications, agriculture, health, and other 
areas (Mesamed, 2015, p. 93-94). In the same year, Armenia and Iran signed a 
memorandum of cooperation in the field of construction and solution of technical 
problems of the Aras Hydroelectric Power Plant. 
In 2009, Armenia and Iran began to implement the "Natural Gas for Electricity" 
program, which provides for the exchange of 3 kW / h of electricity for 1 cubic 
meter of natural gas. It should be noted that during this period, there were two 220 
kV high-voltage power lines between Iran and Armenia. Besides, a third 400 kV 
transmission line was being laid from the Armenian city of Megri on the border 
with Iran and the hydropower plant of the same name on the river to Razdan. The 
project, valued at 107.9 million euros, is funded by Iran. Besides, work is underway 
to extend this transmission line, valued at 105.2 million euros, from Armenia to 
Georgia. However, the project was repeatedly postponed (Andreeva, 2019, p. 116). 
During Mahmoud Ahmadinejad's visit to Yerevan in December 2011, a 
"Cooperation Agreement between the Government of the Republic of Armenia and 
the Government of the Islamic Republic of Iran on the construction and operation 
of a hydroelectric power plant on the Aras River" was signed. During the visit of 
the Minister of Energy of Iran M.Namju to Armenia in June 2012, a practical 
agreement was reached to start the construction of a 130 MW hydropower plant on 
the Aras River in the fall of that year. According to the project, Armenia and Iran 
planned to build two of the most powerful hydroelectric power plants in the South 
Caucasus (Mesamed, 2015, p. 103). Construction work began on $ 500 million 
loans from the Export Development Bank of Iran. According to the agreement, Iran 
will build a hydroelectric power plant for the Armenian side, and after the 
completion of construction, Armenia will export electricity to Iran at international 
prices for 15 years, and then the plant will be fully handed over to the Armenian 
side. Following the commissioning of the HPP, the Islamic Republic of Iran has 
strengthened its leadership in electricity generation in the Middle East. It should be 
noted that in those years, the country supplied 100 percent of its cities and 99 
percent of its villages with electricity. At the same time, following the principles of 
electricity, Iran exchanged electricity with almost all its neighbors, including 
Turkmenistan, Azerbaijan, and Armenia. Back in 2005, Iran's electricity exports 
increased 3.5 times. The exchange of electricity means the transfer of energy to 

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Kelbizadeh, E.
Güz/Fall 2022 
Cilt 12, 
Sayı 2, ss. 37-51 Volume 12, Issue 2, pp. 37-51 
49 
neighboring countries, which can be produced in excess in the country for a certain 
period, and then import from that country in the required period. It should be noted 
that neighboring countries such as Azerbaijan and Armenia need electricity 
produced in Iran in the winter months, and the Islamic Republic of Iran needs 
electricity in the summer months. Such an exchange necessitated the construction 
of high-voltage power lines between the countries. To discuss these and other 
issues, Iranian Energy Minister Hamid Chitchian visited Armenia in November 
2013 and met with President Serzh Sargsyan to discuss energy cooperation. Since 
the fall of 2014, discussions on the construction of the next high-voltage power line 
between Armenia and Iran have intensified (Mesamed, 2015, p. 105). 
After the announcement of the partial lifting of sanctions against Iran, the 
discussion of opportunities for cooperation in the energy sector in the quadripartite 
format (Russia, Georgia, Armenia, Iran) intensified. In December 2015, a 
Memorandum of Understanding was signed between the representatives of these 
countries, according to which it was planned to begin construction of a new transit 
energy corridor connecting Iran and Iran. Armenian media reported on the 
agreements reached between Baku and Tehran in 2016 to build a hydroelectric 
power plant in Azerbaijan and criticized this issue. However, Yerevan continues to 
consider itself an important energy partner of Iran and seeks to develop bilateral 
cooperation. Russian researcher Ekaterina Andeyevna writes that both Armenia and 
Azerbaijan are energy suppliers to Iran and do not prefer any of these countries 
(Andreeva, 2019).