Banking Restrictions Between Iran and Azerbaijan Eased

Azerbaijan's Deputy Prime Minister Shahin Mustafayev announced that all banking restrictions between Azerbaijan and the Islamic Republic of Iran have been lifted.

Shahin Mustafayev, Deputy Prime Minister of Azerbaijan, highlighted the importance of expanding bilateral cooperation during the Iran-Azerbaijan Joint Economic Cooperation Commission meeting on Monday, The Caspian Post reports citing Iranian media.

Mustafayev praised Tehran’s hosting of the Azerbaijani delegation and stressed that the wide-ranging agenda under discussion would significantly contribute to the growth and prosperity of relations between the two neighbors.

Referring to agreements reached in January last year, he said ties have since witnessed remarkable progress, with numerous high-level visits underscoring the deepening friendship. He emphasized that the foundation of Iran-Azerbaijan relations lies in strong cultural and historical bonds, noting that President Ilham Aliyev attaches great importance to good-neighborly ties with Iran.

The Azerbaijani official described President Masoud Pezeshkian’s recent visit to Baku as “highly successful,” yielding key achievements, including the launch of direct flights between Baku and Tehran, as well as Baku and Tabriz. He said both Iranian and Azerbaijani airlines are now operating on these routes, with talks underway to expand services.

Mustafayev also announced the removal of banking restrictions, cultural events held in Tehran, Ardabil, and Urmia, and the participation of Nakhchivan representatives in economic activities in Urmia as signs of strengthening cooperation.

He noted that in the first half of 2025, bilateral trade exceeded $300 million, with new agreements expected to boost the figure further. On transportation, he underlined the strategic role of the North-South Corridor, predicting transit volumes to reach 5 million tons by 2028 and grow further beyond 2030.

The Azeri Deputy PM pointed to major infrastructure projects, including the construction of the Aghband-Kalaleh Bridge, scheduled for completion by year’s end, as well as the expansion of roads, terminals, and the Astara logistics hub. These, he said, will ease congestion and increase cargo transit.

He added that his 20-member delegation will visit Tabriz and Bandar Abbas to explore cooperation in ports and logistics. Mustafayev also revealed plans for upcoming trilateral Iran-Azerbaijan-Russia meetings in Baku, focusing on transport, energy, and other strategic areas.