Iran’s disadvantage for further cooperation and
deepening of relations with the Central Asian
countries are domestic, economic, political
which makes it particularly difficult for private
investors to develop their strategies in Central
Asia. Iran has been involved in the development
of Caspian Sea oil and gas reserves, as the
Caspian Sea is off of Iran’s Western Coast. This
would make Iran an important ally to Kaza-
khstan in terms of divided the Caspian Sea re-
sources, contract agreements and negotiations,
oil and natural gas transport infrastructure, and
oil diplomacy especially dealing with Russia.
In recent years, Iran has taken advantage of its
common cultural ancestry with Tajikistan to
carve a niche in Central Asia. Tajikistan is the
only non-Indo European speaking country in
the Central Asia region. Tajik, Tajikistan’s na-
tional and official language is a form of Persian
and Tajik uses the Persian script.
Iran was the first country to open an embassy
in Tajikistan’s capital of Dushanbe. Iran also as-
sisted in mediating the devastation Tajik Civil
War (1992-1997). Iran is the second largest in-
vestor in Tajikistan after China. Iran has invested
heavily in infrastructure projects in Tajikistan
such as the Sangtodeh-2 Hydroelectric Power
Plant (HPP).
The Sangtodeh-2 HPP started constructed in
the 1980s and construction stopped due to the
lack of financing and Iran expressed interest in
funding the project which was finalized in 2005.
The HPP on the Vakhsh River produced its first
unit in 2011. The HPP is operated by Iranian
company Sangob. Iran will most likely further
to investments into Tajikistan’s energy sector.
Trade between the two countries, as Iran con-
siders Tajikistan to be its main ally in Central
Asia, has increased from “$ 400 million in 2010,
up from $ 250 million in the previous year” and
Iran contributed 65.5 million in foreign direct in-
vestment.[136]
The Anzob Tunnel is a resurrected Soviet Era
transportation tunnel that would allow Tajiks to
transit goods during harsh climate and allow
the flow of trade all year. The Anzob Tunnel con-
nects Dushanbe to the Northern Fergana Valley.
Construction of Anzob Tunnel began in 2003
and construction was completed in 2006; Iran
invested 31 million USD into the project and
was expected to cost 110 million USD.[137] The
tunnel has garnered a dangerous reputation
with falling and crumbling rock and water dam-
age and running water and ventilation is poor.
A social media site posted video of the tunnel
calling it the death tunnel because of the poor
construction and poor maintenance.
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