Later on, territorial claims over Nagorno-Karabakh led to armed conflicts between Armenia and the Republic of Azerbaijan. However, a cease-fire has been in force since 1994.

Armenia may play an important role in establishment of peace and security in the region due to its geographical and strategic position in South Caucasus and is a route for transfer of Iran’s energy resources to northern parts.

Political participation in international and regional forums as well as expansion of economic and cultural relations, are major grounds for development of bilateral ties between Tehran and Yerevan.

Presence of more than 3,000 Iranian students at various Armenian universities is another important aspect of mutual relations.

Also, 120,000 Armenians are living in Iran, which can greatly help develop bilateral ties.

At present, volume of trade relations between Iran and Armenia exceeds 200 million dollars.

Dr. Mahmoud Ahmadinejad left for Yerevan on Monday, October 22, heading a high ranking delegation to meet and confer with his Armenian counterpart, Robert Kocharian.

During his stay in Armenia, in which he signed some agreements with the Armenian side and addressed academicians and Iranians living in Armenia, the two sides discussed gas transfer from Iran to Armenia in presence of Gholamhossein Nozari, caretaker of the Iranian Ministry of Petroleum.

Gas transfer from Iran to Armenia was brought up more than 10 years ago by signing an agreement, but due to differences on gas price and guarantees about repayment, finalization of the contract was postponed until the two countries signed it in 2004. The contract also included electricity purchase by Iran from Armenia.

The contract entered into force in 2004 and it was decided that Iran would receive electricity in return for gas export to Armenia.

According to the contract, Armenia would give about 3 kW/h electricity to Iran in return for every cubic meter of natural gas.

Late last Iranian year (ended March 20, 2007), a gas-burning flair was lighted in Nordouz region of East Azarbaijan province after President Ahmadinejad’s visit to Armenia, which was construed as a sign of Iran’s compliance with its commitments.

According to the contract, Iran will export up to 3 million cubic meters gas to Armenia. The 30-inch gas line will run over a distance of 141 km of which 110 km will lie on the Iranian soil.

Iranian officials have noted that everything is ready for gas exports to Armenia. Seyed Reza Kasaeizadeh, managing director of the National Iranian Gas Company, has frequently announced that in interviews with domestic media.

He maintains that Iran is facing no problem for exporting gas to its northern neighbor.

In his latest comment, Kasaeizadeh quoted Armenian officials as saying that they were ready to receive gas as of November 2007.

During the two-day visit to Armenia by President Ahmadinejad, who was accompanied with Ministry of Petroleum caretaker, gas export was among major topics of discussion. The visit has raised new hopes that our northern neighbors will begin receiving Iranian gas after long waiting.