Indian Council of World Affairs

At the invitation of President Ebrahim Raisi of Iran, President of Uzbekistan Shavkat Mirziyoyev paid a visit to Tehran on June 18, 2023, becoming the first President from the country to visit Iran in over 20 years.[1] A Joint Statement on strengthening cooperation and several other bilateral documents were signed during the visit, marking it as a turning point in the relations between the two countries. Furthermore, in light of the conflict between Russia and Ukraine and recent geopolitical and geo-economic changes, the visit had a broader regional component, particularly from the connectivity perspective. 

This paper aims to shed light on what this visit means for the overall dynamics between the two countries and how it will help to improve inter-regional cooperation particularly connectivity, with Afghanistan as an important factor. 

The Tehran Visit 

President Mirziyoyev held meetings with President Raisi and Iran’s Supreme Leader Ayatollah Ali Khamenei during his one-day visit in June 2023. This was the second interaction between the two Presidents in a year’s time as the Iranian President had travelled to Uzbekistan in September 2022 to participate in the 22^nd Summit meeting of the Shanghai Cooperation Organisation (SCO) in Samarkand,[i] which was his first trip abroad since taking office of the President in August 2021. 

During the Uzbekistan President’s visit to Tehran, the two countries placed special emphasis on solidifying bilateral ties while highlighting shared cultural and historical experiences, with interactions being raised to a new level of ‘comprehensive cooperation’.[2] The two Presidents discussed ways to further strengthen their relationship, particularly in technology and economy. On the eve of the visit, a Business Forum was held in Tehran with the participation of over 200 entrepreneurs from the two countries.[3]

The two Presidents discussed opportunities to increase bilateral trade and coordination in transportation and logistics. It was mentioned that the current level of US$ 500 million annual bilateral trade could increase by three to four times in a short span of time.^[4] To increase cooperation in areas like trade, transport and connectivity, technology, pharmaceuticals and agriculture, the two sides inked 15 documents.^[5] It included cooperation in sectors like standards and insurance, and agriculture. The two countries also agreed to consider establishing joint free economic zones. 

There has been an emphasis on ‘practical cooperation’ between the two countries, and in the wake of the visit, a branch of Iran House of Innovation and Technology in Tashkent (IHITT)^[ii] has been opened in Tashkent, Uzbekistan, for cooperation in innovative technologies and scientific developments.^[6] Along with the private sector, IHITT aims to promote high technologies in Uzbekistan and organise permanent exhibitions of innovative technologies, products, and services of Iranian companies.^[7] A technological cooperation agreement worth US$10 million in the field of energy was also signed.^[8] Uzbekistan and Iran want to share experiences in artificial intelligence, nanotechnology and cybernetics. Changes in regional dynamism seem to prompting the two countries to expand their cooperation. 

Growing inter-regional cooperation prospects 

There is renewed interest in Uzbekistan and Iran to increase and intensify engagement as both want to accelerate their development and integrate with regional economies. Uzbekistan is undertaking economic reforms and diversifying transport linkages with other regions. The Russia-Ukraine conflict and its impact on Central Asian countries is making it necessary to find sanction-free transport routes. On the other hand, Iran is pursuing increased engagement with the Eurasian region through its ‘Look towards the East’ policy for economic and political reasons. 

The departure of foreign forces from Afghanistan has been a welcome development from Iran’s perspective, which was hemmed by the presence of American forces in its west in Iraq and in the east in Afghanistan. Responding to the withdrawal, President Raisi in August 2021 said America’s departure from Afghanistan should become ‘an opportunity to restore life, security, and durable peace in the country’.[9]

Foreign forces’ departure from Afghanistan has been a kind of removal of barrier for Iran to diversify its engagement with its eastern neighbourhood. Iran has longstanding relations with Central Asia and sees the region as a potential market for its exports, including in defence and security spheres. The UN Security Council’s arms embargo on Iran ended in October 2020. The country can now ‘procure any necessary arms and equipment’ from any source without any legal restrictions and it can also export armaments based on its ‘own policies’.[10] Subsequently, Iran in association with Tajikistan, built a military drone Ababil-2 manufacturing facility near Dushanbe in 2022. The factory is the first such facility that Tehran has built in another country.

Efforts to boost inter-regional connectivity – Afghanistan a link? 

Uzbekistan is doubly-landlocked and improving connectivity with international transport networks is considered essential for its economic development and foreign trade. Consequently, during the visit of the Uzbek President to Iran the two sides discussed using the ‘shortest transport-logistics corridors connecting Central Asia with Iran’.^[11] Both Iran and Uzbekistan agreed that improved transit and transportation will increase trade and freight traffic. The two sides also inked an agreement on preferential trade, shipping and transit of cargoes.^[12]

While Afghanistan is a common link between Iran and Uzbekistan; the situation there impacts both Iran and Uzbekistan. Instability in Afghanistan has been hampering efforts to improve inter-regional economic cooperation. Tashkent and Tehran favour a stable Afghanistan to let them access neighbouring and other international markets. Contributing to the efforts to bring stability in Afghanistan is in the mutual interest of Iran and Uzbekistan. Both Uzbekistan and Iran have adopted ‘pragmatic’ approach towards engaging the Taliban. Though neither of the two recognises Taliban’s rule, and both call for an inclusive government in Kabul. 

During the visit, the two sides decided to continue dialogue on ways to improve security and stability in Afghanistan and support its socio-economic recovery. The importance of joint efforts in fight against terrorism, drug trafficking, cyber-terrorism and human trafficking was also highlighted. Earlier, in March 2022 senior security officials of Iran and Uzbekistan had signed a ‘joint document for security cooperation’ aiming to form a joint security commission and to fight against terrorism, extremism, drug trafficking and other transnational organised crimes.[13]

In recent months, both Uzbekistan and Iran have been making effort to improve inter-regional connectivity through Afghanistan between South Asia, Central Asia and West Asia. The Russia-Ukraine crisis makes it urgent. In July 2023, Uzbekistan along with Afghanistan and Pakistan signed a tripartite joint protocol in Islamabad to connect Termiz in Uzbekistan to Pakistan’s railway system via Logar and Mazar-i-Sharif in Afghanistan. The 760-kilometre trans-Afghan rail will have both passenger and freight services and would cost about US$ 5 billion.[14] However, as the Taliban dispensation in Afghanistan is not recognised, international funding of the project could be a challenge. 

Iran, on the other hand, started a rail line with Afghanistan in December 2020.[15] The 225 km-long cross-border Khaf-Herat railway project connects eastern Iran with Afghanistan and is considered one of the significant infrastructure projects managed by the railways of the two countries. The line will extend to Chabahar in south-eastern Iran and likely open in 2024. On July 11, 2023, freight services on the line were officially launched with a ceremony. 

India-Iran-Uzbekistan connectivity trilateral 

India, being the largest economy across South, Central and West Asian regions, becomes central to inter-regional trade and any connectivity initiative. Both Iran and Uzbekistan want greater engagement with India in all areas. India is making significant investments in the development of Chabahar Port of Iran, which is fast emerging as a node linking various parts of Asia. 

There is a convergence between India, Iran and Uzbekistan to trilaterally develop and improve multi-region transit and connectivity linkages. The three countries held their first Trilateral Working Group Meeting on the joint use of Chabahar Port in December 2020 in virtual format and discussed the use of the Port for trade and transit purposes and enhanced regional connectivity. The second Trilateral Meeting was also held virtually in December 2021, which underlined the important role of Chabahar Port in providing humanitarian assistance as well as in enhancing regional connectivity. It was noted that transit traffic between Central Asia and South Asia through the Chabahar Port has increased.[16]

Conclusion 

The visit of President of Uzbekistan to Iran was undertaken after a long gap. The two countries now find it imperative to improve bilateral ties in various areas. Central Asia’s regional stability and ongoing integration will help Uzbekistan’s efforts to restructure its economy and boost regional and foreign commerce. Despite sanctions, Iran has made significant technological progress, including in the sphere of security, and now it seeks to enhance cooperation with Central Asian region. In this direction, Tehran has also joined the SCO, which considers Central Asia as its ‘core’. 

Improving connectivity and bringing stability in Afghanistan requires inter-regional efforts. India has been at the forefront in providing humanitarian assistance to the Afghan people. India has undertaken various economic and connectivity initiatives to increase trade and economic relations with regions of Asia, including Central and West Asia. India-Iran-Uzbekistan partnership, especially in connectivity, could be beneficial for Central Asia’s inter-regional connectivity not only with West Asia but also with South Asia. 

***** 

* Dr. Athar Zafar is a Senior Research Fellow at ICWA, New Delhi.
Disclaimer: The views are of the author.

End Notes

[i] Iran became a full member of the SCO during the virtual Summit hosted by India virtually in July 2023

[ii] Details about the IHITT can be seen at: https://ihitt.uz/

[1] The Caspian Post, “Iran and Uzbekistan Sign Economic Cooperation Agreements,” 19 June 2023, https://caspianpost.com/en/post/iran-and-uzbekistan-sign-economic-cooperation-agreements, accessed 21 June 2023,

[2] President of the Republic of Uzbekistan website, “Uzbek and Iranian Delegations Hold Extended Format Talks,” 18 June 2023, https://president.uz/en/lists/view/6433, accessed 28 June 202

[3] Tehran Times, “ICCIMA hosts Iran-Uzbekistan business forum,” 17 June 2023, https://www.tehrantimes.com/news/485844/ICCIMA-hosts-Iran-Uzbekistan-business-forum, accessed 26 June 2023

[4] Tasnim News, “”Uzbek President in Iran for High-Profile Talks, 18 June 2023, https://www.tasnimnews.com/en/news/2023/06/18/2912638/uzbek-president-in-iran-for-high-profile-talks, accessed 30 June 2023

[5] President of the Republic of Uzbekistan website, “A Package of Documents on Further Development of Comprehensive Uzbek-Iranian Cooperation Adopted,” 18 June 2023 https://president.uz/en/lists/view/6434, accessed 6 July 2023

[6] Embassy of the Republic of Uzbekistan in the Islamic Republic of Iran, “The President of Uzbekistan visits the exhibition of scientific and technological achievements of Iran,” 19 June 2023, http://www.uzbekembassy.ir/, accessed 22 June 2023

[7] N. Usmanova, “Iran House of Innovation and Technology opens in Tashkent,” 20 June 2023, https://www.uza.uz/en/posts/iran-house-of-innovation-and-technology-opens-in-tashkent_494904, accessed 19 July 2023

[8] Tehran Times, “Iranian center for innovation and technology opened in Tashkent,” 18 June 2023, https://www.tehrantimes.com/news/485896/Iranian-center-for-innovation-and-technology-opened-in-Tashkent, accessed 19 July 2023

[9] IRNA, “رئیس جمهور در گفتگو با وزیر امور خارجه: شکست آمریکا در افغانستان باید به فرصتی برای امنیت و صلح تبدیل شود ,” 16 August 2021, شکست آمریکا در افغانستان باید به فرصتی برای امنیت و صلح تبدیل شود - ایرنا (irna.ir), accessed 20 July 2023

[10] Tehran Times, “Iran announces termination of UN arms embargo,” 18 October 2020, https://www.tehrantimes.com/news/453652/Iran-announces-termination-of-UN-arms-embargo, accessed 5 July 2023

[11] Embassy of the Republic of Uzbekistan in the Islamic Republic of Iran, “Uzbekistan, Iran Presidents discuss prospects for the development of bilateral practical cooperation,” 19 June 2023, http://www.uzbekembassy.ir/, accessed 22 June 2023

[12] Tass, “Iran, Uzbekistan to look at establishing free economic zones — agency,” 18 June 2023, https://tass.com/world/1634611, accessed 22 June 2023

[13] Tehran Times, “Iran, Uzbekistan sign joint security cooperation document.” 9 march 2022,  https://www.tehrantimes.com/news/470887/Iran-Uzbekistan-sign-joint-security-cooperation-document, accessed 20 July 2023

[14] Railway Gazette International, “Trans-Afghanistan Railway agreement signed,” 20 July 2023, https://www.railwaygazette.com/infrastructure/trans-afghanistan-railway-agreement-signed/64551.article, accessed 23 July 2023

[15] Ebrahim Fallahi, “Khaf-Herat railway inaugurated,” Tehran Times, 11 December 2020, https://www.tehrantimes.com/news/455618/Khaf-Herat-railway-inaugurated, accessed 22 June 2023

[16] All India Radio, “Second Trilateral Working Group Meeting between India, Iran, and Uzbekistan on joint use of Chabahar Port,” 14 December 2021, https://newsonair.gov.in/Main-News-Details.aspx?id=431532, accessed 23 July 2023.