Some businesses may relocate to Iran to save costs

Some Azerbaijani businesses could be relocated to Iran in the future as production costs in the neighboring country are two to three times below those in the domestic market, a reliable source said.

If the relocation proves economically viable for both countries, the move will further depend on the outcome of political talks. Therefore, the measure remains under a question mark for the time being.

The source also said that Iran played the role of an important transit state for Azerbaijan, as the latter often carries out trade with third countries via this country.

The Azeri-Iranian trade turnover made up $500 million in 2007. Transit trading accounts for a part of the amount.*