The Prospect of Economic Relations between the Islamic Republic of Iran and Armenia and the Potentiality of Gas Transition

The Islamic Republic of Iran and Armenia enjoy amity and a relationship free from tension due to geopolitical concerns and an overlap of their interests and foreign policy goals. This has led to an increase in bilateral economic cooperation. Nevertheless, having a limited and fragile economy, Armenia has never been meeting economic needs of the Islamic Republic of Iran. Still, Yerevan can play a significant role as a linking bridge for the exportation of gas to the Caucasus, Ukraine and Eastern Europe, through the pipeline, known as "White Stream". This paper argues that the possible involvement of Iran in the White Stream project is favorable to the interests of exporting countries, transit countries and end-users, while the energy strategies of the United States and Russia are considered as a hindrance for that. Ukraine crisis in 2014 has added to this complexity, though it has highlighted the importance of the issue.