Armenia’s “Crossroads of Peace” Initiative
Author: Dietrich Schartner
In October 2023, Armenia presented the “Crossroads of Peace” initiative at the Tbilisi Silk Road Forum. The goal is to open up Armenia’s isolated transportation infrastructure and turn it into a transit hub in the South Caucasus. The core objective is the expansion or reactivation of roads, rail lines, pipelines, power lines, and fiber-optic cables connecting to neighboring Turkey, Azerbaijan (including Nakhchivan), Iran, and Georgia. This is intended to facilitate trade and passenger traffic between the Caspian Sea, the Mediterranean, the Persian Gulf, and the Black Sea. The Armenian government emphasizes that all infrastructure in the respective host country is to be operated under that country’s sovereignty and control (border, customs, and security controls remain national), and that use of the infrastructure is to be reciprocal and on an equal footing for all parties involved. The initiative is seen as part of the post-Karabakh conflict peace agenda, with the goal of promoting economic integration and trust and reducing Armenia’s dependence on Russia.
Planned Infrastructure Projects
Numerous concrete transportation and energy projects are planned as part of the Crossroads of Peace initiative. These primarily include new or reopened border crossings and transportation routes:
- Road border crossings: Five new crossings to Azerbaijan (including at Kayan, Sotk, Karahunj, Angeghakot, and Yeraskh) and two to Turkey (Akhurik and Margara).
- Rail border crossings: Four new rail crossings to Azerbaijan (Nrnadzor, Agarak, Yeraskh, Kayan) and one to Turkey (Akhurik).
- Rail lines: Reactivation and expansion of decommissioned sections—e.g., Nrnadzor–Agarak (43 km) in southern Armenia, Hrazdan–Kayan (80 km) in central/northern Armenia, each with a connection to Nakhchivan (Yeraskh, 1 km) and Turkey (Gyumri–border, 6 km), respectively. Particular focus is placed on the planned Yeraskh–Julfa–Meghri–Horadiz railway, which would directly connect the Caspian Sea with the Mediterranean/Black Sea.
- Roads/Highways: Expansion and construction of national highways through Armenia to the south (Iran) and west (Turkey) in cooperation with neighboring countries.
- Energy infrastructure: Expansion of oil and natural gas pipelines as well as power lines, which are to be connected to the grids of neighboring countries. Armenia is participating, for example, in a planned 1,000-kV undersea cable project between Anaklia (Georgia) and Constanța (Romania) as part of the EU Global Gateway Initiative.
- Digital infrastructure: Laying of fiber-optic cables to establish high-speed internet connections between neighboring countries.
Armenia expects that as early as the first year of operation, up to 4.7 million tons of goods and approximately 300,000 passengers could be transported via the revitalized rail and road network. Economic experts see enormous potential here for efficiency gains in freight transport between Europe and Asia, as well as for tourism and commuter flows in the region.
Regional Traffic and Transport Corridors
The Crossroads of Peace initiative connects several international corridors:
- Trans-Caspian “Middle Corridor”: The planned Yeraskh–Julfa–Meghri–Horadiz railway would create a direct route from the Caspian region to Europe. Goods could be transported from the Caspian Sea via the Black Sea or the Mediterranean Sea, enabling shorter transit times and bypassing geopolitical hotspots.
- North-South Corridor: Armenia is set to become part of an axis stretching from the Persian Gulf (via Iran) to the Black Sea ports of Georgia (Poti/Batumi). A key project is the 461-km-long road through southern Armenia, which connects the Iranian border crossing with the Georgian ports. This corridor would provide Armenia with direct access to major maritime loading points.
- East-West Axis: Through the East-West connection linking Central Asia–Azerbaijan–Armenia–Turkey, goods from China and Kazakhstan can be routed via Georgia and Armenia to Turkey and onward to Europe. The “Zangezur” route (also known as the U.S.-initiated Trump Route/TRIPP) also aims to open up Azerbaijan to Europe via the Armenian South Caucasus.
Overall, the planned connections complement existing routes and position Armenia as a potential transit country for freight traffic between Central Asia, Russia, Iran, Turkey, and Europe. Through this initiative, for example, goods from Kazakhstan or Turkmenistan could reach Western Europe via the Caspian Sea and Armenia (or Georgia) instead of taking the traditional route through Russia.
Trade Links and Investments
The opening of new transit routes promises significant economic benefits. Faster and direct routes will reduce trade costs and delivery times. Experts anticipate a significantly higher throughput in the South Caucasus: Reactivating these connections would strengthen the “Middle Corridor” and could enable thousands of new shipments. Countries such as Azerbaijan and Turkey would thereby gain better access to EU markets; Armenia itself would generate transit fees and customs revenue.
Key players and investors have already signaled their interest:
- European Union: Through its Global Gateway initiative, the EU is promoting better connectivity. Approximately $2.5 billion in infrastructure investments is earmarked for Armenia. The European Commission expressly supports the project and views it as a contribution to European supply security and the opening of new markets.
- United States: The United States supports the concept diplomatically. U.S. diplomats and think tanks emphasize the initiative’s importance for stability and economic diversification in the Caucasus.
- Multilateral Development Banks: The Asian Development Bank (ADB) has already invested over $1.8 billion in Armenian infrastructure projects and has expressed interest in the Crossroads Initiative. ADB representatives stated that the idea is “very important and aligns with our vision.” The EBRD and EBRD are also mentioned as potential investors.
- China: Beijing is highly interested in alternative trade routes to Europe. Should Armenia open its borders (for example, to the Trump Route) and implement the Crossroads plans, the country could become a major transit hub for Chinese exports. This would motivate China to invest in Armenian transport infrastructure.
- Regional partners: Iran welcomes potential new connections to European markets. Turkey is showing a growing willingness to invest in transportation projects (particularly in Trans-Caspian routes). Countries such as Kazakhstan and Azerbaijan have also sent positive signals or may be interested in cooperation along the new corridors.
- Private and bilateral funding: Armenia promotes public-private partnerships and relies on EU funding (e.g., co-financing of roads/railways). Bilateral development programs (e.g., USAID) and financing from Gulf states are also conceivable.
These investments and new trade flows would significantly revitalize Armenia’s economy in sectors such as logistics, construction, and tourism. The government anticipates an increase in freight transport of millions of tons and significant passenger traffic as early as the first years of operation. In the long term, the country aims to strengthen its domestic market and play a role as a regional hub in Asia-Europe supply chains.
Armenia’s Role in Regional Trade
Through “Crossroads of Peace,” Armenia could transform from a largely isolated periphery into a major transit hub. Until now, borders with two neighbors (Azerbaijan, Turkey) have been permanently closed, severely restricting trade and freedom of travel. An opening under the initiative would fundamentally change this: for the first time, Armenia would have a land route to Turkey, a direct connection to Nakhchivan (Azerbaijan), and better roads to Iran.
In terms of economic policy, this would significantly strengthen Armenia’s position. As a transit country, it could generate revenue from tolls and customs duties, create jobs in the transportation and construction sectors, and bring its goods to foreign markets more quickly. At the same time, the supply chain for imports would improve—for example, through lower transportation costs for fuel and consumer goods. Sectors such as IT and agriculture could also benefit by gaining access to larger markets.
Armenia could also reduce its dependence on Russia. A direct connection to the Middle Corridor and the South Caucasus would open up alternative trade routes. Gas and oil imports could increasingly come from Iran or Azerbaijan in the future, thereby reducing the monopoly of Russian suppliers. Overall, the country would, according to the plan, serve as a “bridgehead”—a link between Central Asia, Iran, Russia, and the EU.
