Iran’s Bilateral Relations with
the Local Countries
It should be noted that bilateral relations with the South Caucasian states are a priority of Iran’s
foreign policy when dealing with the border countries. Cooperation with Azerbaijan, Georgia, and
Armenia is a powerful tool for strengthening Iran’s influence and is of political significance for the
local and global actors. An increase in bilateral relations could partially compensate for Iran’s limited
capacity, due to the nature of Tehran’s regime, to participate in the large international projects that are
currently being implemented in the Southern Caucasus and the Caspian Basin. Moreover, Iran con-
siders bilateral relations to be an effective way to maintain a strategic balance among Azerbaijan,
Georgia, and Armenia.
Within the last decade, Azerbaijan has been able to increase its political, economic, and military
might and now “the balance of power in the region has shifted in favor of Azerbaijan.”
29
Moreover,
29
S. Meister, “Recalibrating Germany’s and EU’s Policy in the South Caucasus,” DGAP, No. 2, July 2010, availa-
ble at [http://aussenpolitik.net/themen/eurasien/kaukasus/recalibrating_germany-s_and_eu-s_policy_in_the_south_caucasus].
| 
