Iran and Energy Cooperation in the South Caucasus: Prospects for the Post-Sanctions Era

Abstract

The collapse of the Soviet Union and its replacement by independent republics had a significant effect on the geopolitics of Iran, especially on its northern borders. Within these new geopolitics, Iran functions as a land bridge connecting the two major energy-producing regions of the world, i.e., the Caspian Sea and the Persian Gulf. This new situation has had a profound impact on Iran's security and foreign policy, as have the Iran nuclear deal and the lifting of related international sanctions on Iran, which - for years - had obstructed the expansion of international economic relations and energy cooperation between Iran and the Caucasus. Thus, it can be argued that the prospect of cooperation between Iran and the South Caucasian countries will change in the post-sanctions era, especially regarding investment expansion policies and the joining of potential regional pipelines for the purpose of supplying energy resources.