What is the Zangezur corridor and why is it needed?

Where is the Zangezur Corridor located?

The Zangezur Corridor is a planned transport route that will connect the mainland of Azerbaijan with the Nakhichevan Autonomous Republic (NAR) via the Syunik region in southern Armenia (in Azerbaijani, it is called Zangezur). It will be approximately 40 km long. The project is planned to include the creation of road and rail highways.

During the Soviet era, transport links between Azerbaijan and Nakhichevan were provided by road and the Transcaucasian Railway. After the collapse of the Soviet Union and the outbreak of the First Karabakh War (1992–1994), the railway line was removed, which led to the severance of land links between the main part of Azerbaijan and its exclave. Currently, Nakhichevan can only be reached from the western regions of the country by air or via Iranian territory.

Zangezur Corridor on the map

The route passes near the Iranian border and connects with the Goradiz-Agbend transport highway in western Azerbaijan, and in the exclave it will connect with the Nakhichevan-Julfa-Orduabad road network. It is also planned to build a railway and a highway from the Turkish city of Kars to Nakhichevan. The corridor may pass through the city of Megri in Armenia.

An alternative route, the Aghbend-Kalalex-Julfa route, is also being considered, called the "Araz Corridor", which would run 107 km through Iran and run along the Araz River. Turkish President Recep Tayyip Erdogan announced that this project would be implemented if Armenia abandons the Zangezur corridor option in September 2023. In October of this year, the foundation of a road bridge crossing the Araz River was laid near the Azerbaijani village of Aghbend, on the border with Iran, and it was reported that customs and border infrastructure are also being built. The parties also reached an agreement on the construction of a railway line through the territory of the Islamic Republic of Iran, which will provide a connection between the main part of Azerbaijan and Nakhichevan. According to the Tasnim Agency, 15 percent of the work on this section was completed by January 2025. The Khatam al-Anbiya company is responsible for this construction.

Shahin Mustafayev and Mehrdad Bazrpash lay the foundation stone of a road bridge on the border of Azerbaijan and Iran in October 2023

(Photo: Ministry of Economy of Azerbaijan)

Its geographical location ensures that the Zangezur Corridor will become part of the Middle Corridor - an international route connecting China and Europe via Central Asia and Turkey. It is also known as the Trans-Caspian International Transport Route (TCTR).

How did the idea for the Zangezur Corridor come about?

Armenian and Azerbaijani authorities began discussing the concept of the Zangezur Corridor after the end of the First Karabakh War. According to former Armenian President Robert Kocharyan, the parties were close to signing an agreement in 2001. According to this agreement, Baku accepted that Karabakh would be part of Armenia, and Armenia, in turn, was ready to provide a transport route to Nakhichevan through the south of the country. However, due to opposition from the Azerbaijani parliament, the agreement was not signed.

After the Second Karabakh War (2020), the idea was once again on the agenda, as Azerbaijan took control of a large part of the territories previously under the control of the illegitimate Nagorno-Karabakh Republic, reaching the borders of Armenia's Syunik region. As a result of the war, a trilateral ceasefire agreement was signed between Azerbaijan, Armenia, and Russia on November 9, 2020. Article 9 of the joint statement of the heads of state enshrined an agreement to "unblock all economic and transport links in the region." The Armenian authorities also undertook to ensure transport links between the southwestern regions of Azerbaijan and the Nakhichevan Autonomous Republic. Control was transferred to Russian border guards.

However, the term "Zangezur Corridor" was not written in the document, as reported by the Russian Foreign Ministry and the Armenian authorities. These words were introduced into the political vocabulary by Azerbaijani President Ilham Aliyev. According to him, the basis for the implementation of this road stems from the ninth article of the agreement.

Initiative participants and positions of the parties

Azerbaijan's position

Azerbaijan sees the Zangezur corridor as a strategic project that will provide a land link between the main part of the country and the Nakhichevan Autonomous Republic, which has been cut off for more than 30 years. Aliyev has said that its opening is inevitable. In particular, in 2021, Aliyev stated that the corridor would be opened regardless of Yerevan's wishes. He called Zangezur "historical lands" of Azerbaijan and threatened to resolve the issue of building the transport route "by force." However, the Azerbaijani Foreign Ministry has denied the "force" option. One of Baku's demands is to ensure the free movement of people and goods through the corridor without customs control by Armenia.

Turkey supports Azerbaijan's aspirations. In talks with Aliyev in September 2023, Erdogan said that Nakhichevan has great potential for developing energy and transport routes, and is important in creating an east-west logistics corridor. At the same time, Turkey does not rule out the possibility of building an alternative route through Iran if Armenia abandons the corridor.

Nakhichevan city, Azerbaijan-Iran border

(Photo: Limpopo/Shutterstock)

Armenia's position

Yerevan categorically rejects the concept of the Zangezur corridor in the form proposed by Baku. Armenia is particularly concerned that the transport route will cut off the country from the Iranian border and the loss of the Syunik region. According to the Prime Minister of the Republic, Nikol Pashinyan, “this term serves as a cover for territorial claims against Armenia.” In January 2024, Armenian Foreign Minister Ararat Mirzoyan stated that the country had not committed to implementing the route and rejected the “logic of the corridor.” He also called the demand to lift customs control over the transport section a violation of sovereignty. In May of the same year, Pashinyan stated in a trilateral statement on Karabakh that it was “about unblocking regional economic ties” and “not about creating a link between Azerbaijan and Nakhichevan.”

In this regard, Yerevan proposes the “Crossroads of Peace” project. Pashinyan first put forward this initiative in October 2023. It envisages expanding ties between Armenia, Turkey, Azerbaijan, Georgia and Iran through the repair and construction of transport and energy infrastructure (pipelines, cables, power lines). One of the main principles of the project is that this infrastructure should be under the sovereignty and jurisdiction of the country in which it is located. The concept involves the restoration of the Megrin railway, which will connect the Armenian village of Eraskh, located on the border with Nakhichevan, with the city of Goradiz in western Azerbaijan. According to the politician, the project could be part of the Middle Corridor, like the Zangezur Corridor.

Nikol Pashinyan presents the "Crossroads of Peace" project at an international forum in Tbilisi, October 2023

(Photo: Office of the Prime Minister of the Republic of Armenia)

Iran's reaction

Tehran does not support the construction of the Zangezur corridor and sees it as a threat to its national interests and regional influence. In August 2023, Iranian Ambassador to Armenia Mehdi Sobhani, answering a question about Iran's possible measures in the event of Azerbaijan's "forcible opening" of the transport route, stressed that Tehran is firmly opposed to any changes in Armenia's borders and fully supports its territorial integrity. He also said that concrete measures are being taken to ensure this. Simply put, Iran is concerned that the Zangezur corridor will cut off its supply route to Armenia and further isolate it from the entire South Caucasus region. Tehran also wants to maintain its transit role in the region.

In addition, Tehran fears that the strengthening of Turkey and Azerbaijan's position on the northern border could lead to the growth of separatism in Iran's (South) Azerbaijan. At the same time, the Islamic Republic of Iran is positive about the alternative proposal - the Araz corridor, which would pass through its territory.

Why is this corridor important?

The Zangezur corridor is of economic and geopolitical importance for the countries of Central Asia and the South Caucasus. According to World Bank estimates cited by Forbes, if the corridor is opened, annual global trade could increase by $50-100 billion in value by 2027. Bloomberg estimates that unblocking the road would reduce freight transit through Eurasia by 12-15 hours. The Caspian Policy Center estimates that infrastructure costs could be saved by $3-5 billion over 5-10 years, while Oxford Economics predicts a reduction in annual logistics costs of $20-30 billion.

For Azerbaijan, the corridor would provide direct access to Nakhichevan and Turkey, facilitating trade and reducing costs. For example, Baku would be less dependent on gas transit through Iran, where Tehran keeps a 15% fee. Azerbaijani economists estimate that the country's exports would increase by $710 million, non-oil GDP would grow by 2%, and the elimination of subsidies on flights between Baku and Nakhichevan would save about $10 million annually.

For Turkey, this project will open a direct land access to the Caspian Sea and strengthen its position as a transit hub between Europe and Asia, as the corridor will be part of the Middle Corridor. Its construction will facilitate Ankara's communication not only with Azerbaijan, but also with other Turkic-speaking countries of Central Asia.

However, for Armenia and Iran, the Zangezur corridor poses risks associated with the loss of control over transport flows and a change in the geopolitical balance in the region. At the same time, in the fall of 2021, Armenian Economy Minister Vahan Kerobyan said that “unblocking the connection within two years would have a 30% impact on Armenia’s GDP growth.”

Current status in 2025

As of July 2025, Azerbaijan is actively building infrastructure on its territory that will connect with the Zangezur corridor. By February, the Goradiz-Agbend railway, which is more than 110 km long, was 62% complete. A 123.5 km highway is also being built in parallel with this railway. By April, it was 93% complete. A 224 km railway project from Kars to Nakhichevan in Turkey is also being implemented and is planned to be completed within five years.

Construction of the Goradiz-Agbend railway

(Photo: Azerbaijan Railways CJSC)

However, work on the construction of the corridor itself is not underway. On June 14, 2025, Hikmat Hajiyev, head of the foreign policy department of the Azerbaijani presidential administration, said that the Azerbaijani authorities expect "concrete steps from Armenia" in implementing this initiative. He called the "Crossroads of Peace" project put forward by Armenia a belated and limited approach. At the same time, on June 21, 2025, Pashinyan once again opposed the Zangezur corridor at a meeting with representatives of the Armenian community in Istanbul. In his opinion, the "Crossroads of Peace" concept should be implemented.

Due to difficulties in negotiations, the Araz corridor, which passes through Iran, is also being developed in parallel. In April 2025, construction of the Agbend Bridge over the Araz River began. It is planned to be put into operation in early 2026. Baku and Tehran also agreed to launch a border terminal on Iranian territory by the end of 2025.

In July 2025, US Ambassador to Turkey Tom Barrack announced that the US was ready to lease the Zangezur Corridor for 100 years. According to the Middle East Eye, the initiative came from Turkey, and the guarantor of the project may be a private American company. However, according to him, Armenia demanded that this company also manage the section of the road passing through Nakhichevan. Azerbaijan considered this an unacceptable interference. Later, plans to transfer control of the Zangezur Corridor to the US were denied in Armenia. At that time, the press secretary of the country's prime minister, Nazeli Baghdasaryan, stressed that "Armenia has not discussed and is not currently discussing the transfer of its sovereign territory to a third party."

Source: https://www.rbc.ru/base/04/07/2025/6867d7f39a7947ba74dd6282)

Reflection

Economic and geopolitical advantages of the Zangezur corridor for stakeholders

1. Azerbaijan

• Transport and logistics advantage: The Zangezur corridor directly connects Azerbaijan with the Nakhichevan Autonomous Republic, significantly reducing internal logistics costs.

• Expanded export opportunities: Access to the Turkish and European markets will be shortened, making exports of oil, gas, and non-oil products cheaper and faster.

• Political influence: The project strengthens Azerbaijan's role as a transit hub in the Caucasus.

2. Armenia

• Economic benefits: Transit fees, new roads, and infrastructure construction along the corridor can bring funds and jobs to the local economy.

• Trade opportunities: Armenia will have faster access to the markets of both the Eurasian Economic Union and Iran and Central Asia.

• Political risks: However, there are political debates in Armenia about whether this route poses a threat to regional security.

3. Turkey

• Strategic route: Turkey will have a short and safe route through the Caucasus to the Caspian Sea and Central Asia.

• Economic integration: Trade turnover between Turkey and Turkic countries will increase.

• Energy security: The routes to Central Asia's energy resources will be diversified along different routes.

4. Iran

• New trade routes: Iran can develop trade relations with Europe through the Caucasus and Turkey through the corridor.

• Transit revenue: Earns revenue through logistics services and the use of railways and highways.

• Geopolitical balance: The main condition for Iran is that the road does not harm its strategic interests in the region.

5. Russia

• Diversification of transport routes: Russia strengthens its ties with Turkey and Central Asia through the Caucasus.

• EOII integration: The project will allow for increased trade between EOII members.

• Political influence: Russia can maintain its role as a mediator and security force in the region through this route.

6. European Union

• Access to energy resources: Routes to obtain oil and gas from the Caucasus and Central Asia will expand.

• Shortening trade routes: For EU countries, the time and cost of trade with China and Central Asia will be reduced.

If we analyze the US interests in the Zangezur corridor, they are mainly concentrated in the geopolitical and economic direction:

Strengthening geopolitical influence

• Limiting Russian and Iranian influence: The corridor will diversify transit and trade routes in the Caucasus, weakening the strategic role of Moscow and Tehran in the region.

• Regional influence: The United States will have greater influence in political processes in the Caucasus, especially as it strengthens its relations with Armenia.

Energy security and diversification

• Supporting Europe: The Zangezur Corridor will provide new routes for transporting Central Asian and Caspian energy resources to Europe, reducing dependence on Russian gas.

• Transit through Turkey: The US is interested in transforming Turkey into a strategic energy and trade hub as a NATO member.

Economic opportunities

• Market for American companies: New contracts can be obtained through the participation of US companies in road construction and infrastructure.

• Expanding trade ties: There is a possibility that direct US logistical links with Central Asia, Afghanistan, and even China could be improved through the Caucasus.

Regional stability and security

• Supporting peace initiatives: The corridor would create economic connectivity between Armenia and Azerbaijan, reducing the risk of conflict, which is consistent with U.S. diplomatic goals.

• From a military-strategic perspective: US logistical routes and points of influence in the region may increase.

In short, for the United States, the Zangezur Corridor is not only an economic but also a geopolitical instrument. Its main goal is to ensure European energy security through the Caucasus, limit the influence of Russia and Iran, and increase its own influence in the region.

What are China's interests in the Zangezur Corridor?

China's main interests are to develop trade and transport links with Central Asia and the Caucasus. As part of China's "One Belt, One Road" initiative, the development of transport and logistics corridors with the countries of the region is considered an important task. The Zangezur corridor can serve these goals because:

• It is an important corridor in the Caucasus, helping to transport Chinese products and energy resources through transit to European and other markets.

• An opportunity for China to develop transport infrastructure in the Caucasus and strengthen regional cooperation.

• It also plays a role in increasing political and economic influence in the region.

However, the existence of different views and conflicts of interest around this corridor between other countries in the region, particularly Armenia and Azerbaijan, poses problems in satisfying the interests of all parties involved in this project.