ran’s ambassador to Armenia has said that establishment of Iran-Armenia railway is of strategic importance not only for the two countries but also for the entire Caucasus region. Talking to Armen Press News Agency Wednesday, Seyyed Ali Saqaeian added that construction of the railway can serve as a suitable medium for developing transportation in the southern Caucasus.

Referring to the recent visit by Iranian experts to Armenia to study the project, he noted that Russia will possibly take part in it.

Stating that political decision has been made for the establishment of Iran-Armenia railway, Iran’s envoy said that an agreement to that effect has been signed by Iranian President Mahmoud Ahmadinejuad and his Armenian counterpart, Serzh Sargasian during the latter’s visit to Iran.

The project has been estimated to cost dollars two billion and World Bank and Asia Development Bank have expressed readiness to grant loan for the project.

Iran-Armenia railway is to extend 470 kilometers, 60 kilometers in Iran and 410 kilometers in Armenia.