The Islamic Republic of Iran has a different approach to Caspian Sea. According to Law “On exploration and use of natural resources of the continental shelf” Iran adopted in 1995, “International laws are valid concerning Caspian Sea and entrails, natural resources of the Sea, territories where Iranian frontiers and islands are located are and will remain under the sovereignty of Iran.” It means the Iranian side considers Caspian a closed sea in fact.

Regarding the legal status of Caspian, Iran has advanced 2 suggestions: 

1) “Equal division” of the bottom of the Sea among 5 coastal states with 20% each, surface in general use;

2) Allocation of 20-mile “coastal territorial waters zone” and 20-mile “economic zone” from the territory of each coastal state towards the middle of the Sea. Middle segment of Caspian, beyond 40 miles, remains in “general use” of all coastal states on the basis of “consensus”.

To experts, both positions of Iran are sourced from 2 factors:

1) To prevent military-geostrategic and geoeconomic participation of Western states in the Sea;
2)
3) Using the recently created situation, to strengthen its geopolitical positions in Caspian Sea, gain domination in the Muslim countries of the region and remove Russia from this space.
4)
Professor Ali Hasanov says Iran is much more interested in its geopolitical interests than economic ones. Because official Tehran is concerned not about recognition of Caspian as “sea” or “lake” but in assurance of Iran’s geostrategic security and prevention of “potential dangers” sourced from Western countries getting more active in the region. Economic interests come second for Tehran, since it has much more superior and rich energy resources and ready production infrastructures in Persian Gulf and other land territories than Caspian.

Iran, like Russia, is sensitive about energy projects Azerbaijan performs in the region and involvement of foreign companies here, particularly development of Azerbaijan’s relationships with the US in this sphere.

Laman Khalilova,
"Azerbaijan Realities".