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Route awakening

How feasible is the Zangezur Corridor, and who will control it?

July 14, 2025

6 min read

July 14, 2025

6 min read

Photo: Dreamstime.

One of the most expensive shortcuts in the world may soon cross one of its most contentious borders. The Zangezur Corridor—a proposed 43-kilometre transport route through Armenia’s Syunik province—promises to connect Azerbaijan’s mainland with its exclave of Nakhchivan, slicing through a region that has become an unlikely fulcrum for great-power competition in the South Caucasus.

What makes this modest stretch of mountainous terrain so coveted is not its natural beauty—though the Syunik region offers plenty of that—but its strategic position.

The corridor would traverse Syunik, serving as a vital connection between Horadiz in Azerbaijan and Nakhchivan, effectively creating a land bridge between Azerbaijan and Türkiye whilst simultaneously providing Central Asian nations with a more direct route to European markets.

The corridor has recently resurged in diplomatic conversations for reasons that extend far beyond regional logistics. Several reports claim that the United States is ready to take over the administration of the corridor, potentially resolving one of the most contentious disputes between Azerbaijan and Armenia.

If true, this represents a significant shift from earlier assumptions that Russia’s FSB would likely manage any such route.

The arithmetic of ambition

The economics of the Zangezur Corridor reveal the gap between political aspiration and commercial reality. Construction costs may exceed two-three billion US dollars for highways and railways that will require tunnels, bridges, and anti-landslide systems in a mountainous region with gorges and seismic activity.

For a route measuring just 43 kilometres, this represents an investment of nearly 70 million US dollars per kilometre.

The financial logic becomes even murkier when examined against the projected cargo flows that might be routed through Zangezur: too small for such large-scale investments, critics argue. There is no such volume of goods between Azerbaijan and Nakhchivan to pay for the infrastructure, and transit to Türkiye or Central Asia is cheaper and easier via existing routes through Georgia and the Caspian Sea.

However, Zangezur’s proponents paint a grander vision. By replacing the Georgian section of the route with corridor, travel time can be reduced by an additional day compared to the existing Baku-Tbilisi-Kars railway. Turkish President Recep Tayyip Erdoğan has stated that when the corridor opens, Turkish products will cross the Caspian Sea and reach Central Asia and China faster, whilst cargoes from Europe to China will start passing through Turkey.

The corridor also forms part of a larger infrastructure puzzle. The Middle Corridor—the crucial transit route linking Turkey, Azerbaijan, the Caspian Sea, Central Asia, and China—would be significantly enhanced by the Zangezur connection, potentially offering an alternative to China’s Belt and Road Initiative routes that currently depend on Russian or Iranian territory.

The geopolitical equation

The recent renewed focus on Zangezur reflects broader shifts in regional power dynamics. Russia is simultaneously pursuing its own alternative project—the North-South Transport Corridor, which aims to integrate the transport networks of Russia, Azerbaijan, Iran, and India. Moscow’s 1.3 billion US dollars loan to Iran for the Rasht-Astara railway demonstrates its commitment to maintaining influence over regional trade routes.

For Türkiye and Azerbaijan, the corridor represents more than mere infrastructure—it embodies the concept of ‘Turkic continuity‘. The Shusha Declaration signed by presidents of Azerbaijan and Türkiye in June 2021 included a passage on the Zangezur Corridor, with both leaders stressing the importance of its implementation. This pan-Turkist dimension adds ideological weight to what might otherwise be a straightforward economic project.

Iran views the corridor with considerable unease, seeing a new highway along its border with Armenia as an alternative route could diminish Iran’s role as a regional transit hub. The Islamic Republic has particular cause for concern: Türkiye and Azerbaijan can establish exports to Central Asia, China and beyond through the Zangezur Corridor, bypassing Russia. This is a potential blow to the BRICS’ efforts to build independent routes without Western pressure.

India, too, has an interest. India’s investment in Chabahar port and in Armenia offer it the shortest multimodal route to the Black Sea and Europe, bypassing the conflict-plagued Suez Canal. The Zangezur Corridor as it is currently envisaged has the potential to disrupt this.

Winners and losers

The corridor’s beneficiaries are clear enough. Azerbaijan would finally achieve unimpeded access to Nakhchivan, ending decades of blockade and strengthening territorial cohesion. The project aims to enhance Azerbaijan’s trade with Türkiye and Europe by improving logistics infrastructure, reducing transportation costs, and significantly cutting travel time. For a country seeking to diversify beyond energy exports, improved connectivity offers obvious advantages.

Central Asian nations, particularly Uzbekistan, view the corridor favourably. Uzbekistan has repeatedly expressed solidarity with Baku on the Zangezur issue, appealing to the strategic role of the road through Nakhchivan. Shorter routes to European markets could provide crucial competitive advantages for landlocked economies.

Turkey stands to gain considerably. The implementation of the Zangezur Corridor project may contribute to the further development of transport infrastructure in Türkiye’s eastern regions adjacent to the Azerbaijani-Turkish border—areas that have long lagged behind the country’s prosperous west.

Armenia faces a more complex calculation. The Syunik region is important for Armenia’s economy as this border area connects the country Iran, with mining as the region’s staple industry. Ceding effective control over this territory—even whilst maintaining nominal sovereignty—represents a significant concession.

Armenia has called for multiple routes to be opened simultaneously, directly connecting it to both Türkiye and Azerbaijan, thereby ending the ongoing mutual blockade that has existed since 1989.

The sovereignty paradox

At its heart, the Zangezur dispute reflects a fundamental tension between sovereignty and connectivity. Yerevan insists it will retain control over the section of the road that passes through its territory, whilst Azerbaijan argues the route should be fully extraterritorial.

This disagreement over ‘corridor logic’ versus ‘transport connections’ may appear semantic, but it carries profound implications for Armenian sovereignty.

The corridor’s ultimate realisation depends on resolving this paradox. Can Azerbaijan achieve the unimpeded access it demands whilst Armenia maintains meaningful sovereignty over its territory? The answer may determine not merely the fate of a transport route, but the broader architecture of power in the South Caucasus.

For now, the Zangezur Corridor remains what one analysis aptly termed “a strategic utopia with a high price and questionable returns”. However, in a region where geography is destiny and infrastructure is influence, even utopian projects have a way of shaping reality.

The question is not whether the corridor will eventually materialise, but rather who will control it when it does.

Photo: Dreamstime.

Reinvantage Insight

Reinvantage Insight

The byline Reinvantage Insight is used to denote articles to which several members of the Reinvantage insight and analysis team may have contributed.

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Case study: Global technology company

1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

2. The Challenge

Despite strong products and a respected global brand, the regional team was struggling with:

  • Misaligned strategy across markets → campaigns executed with inconsistent narratives.
  • Slowed growth → lead generation plateaued despite increasing spend.
  • Internal friction → marketing, sales, and product teams disagreed on KPIs and priorities.

Traditional fixes (more meetings, more reporting) only created more noise.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional HQ team.

  • Day 1–3: Intake → Reviewed decks, campaign data, and plans.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Sales and marketing had different definitions of “qualified lead.”
    • 40% of spend was going into low-potential markets.
    • The team assumed the problem was lack of budget, but it was actually lack of alignment.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

  1. Unified KPIs bridging marketing + sales.
  2. Market prioritisation → shifting budget to 5 high-potential markets.
  3. Simplified narrative → one EMEA core story, locally adaptable.
By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
  • Positioning → Built a messaging framework balancing global consistency with local nuance, ensuring campaigns spoke with one clear voice.

Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
  • +28% increase in qualified leads across the region.
  • 30% faster campaign rollout due to streamlined approvals.
  • Budget efficiency gains → €2M redirected from low-return to high-potential markets.
  • Internal cohesion → marketing + sales now use a single shared dashboard.
The client came in believing they needed more budget.
The Sprint revealed that what they really needed was clarity and alignment.

With that clarity, the four pillars became not theory, but practical tools to deliver measurable impact.

The Sprint guaranteed at least £20,000 in value — but in this case, it helped unlock more than 10x that within six months.

Case study: Regional VC fund & accelerator

1. The Client

A regional venture capital fund and accelerator focused on early-stage tech start-ups in the Baltics and Central Europe.

The fund had raised a new round and was under pressure to deliver stronger returns while also building its reputation as the go-to platform for founders.

Role we worked with: Managing Partner, supported by the Head of Portfolio Development.

2. The Challenge

Despite a promising portfolio, results were uneven.

Key issues:

  • Scattered portfolio support → no consistent playbook for start-ups, every partner did things differently.
  • Weak differentiation → founders and co-investors saw the fund as “one of many” in the region.
  • Stretched team → too many small bets, not enough clarity on which companies to double down on.

The leadership team knew something was off, but disagreed on whether the issue was pipeline quality, market conditions, or internal capacity.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the partners and portfolio team.

  • Day 1–3: Intake → Reviewed pitch decks, pipeline funnel data, and start-up performance reports.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • No shared definition of a “high-potential founder.”
    • Support resources were spread too thin across the portfolio.
    • The fund’s positioning was more reactive than proactive — it didn’t own a distinctive narrative in the market.
  • Day 5–10: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the challenge wasn’t pipeline quality — it was lack of focus and positioning.

Three core insights provided the turning point:

  1. Portfolio Prioritisation Framework → defined clear criteria for where to double down.
  2. Founder Success Playbook → standardised support model for portfolio companies.
  3. Differentiated Narrative → repositioned the fund as “the accelerator of reinvention-ready founders.”
These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
5. From Sprint to Action (4 Pillars Applied)

With clarity from the Sprint, Reinvantage created a tailored support plan:

  • Readiness → Coached partners on using the new prioritisation framework and trained the team on deploying the Founder Success Playbook.
  • Foresight → Ran scenario analysis on regional tech trends, helping the fund anticipate where capital would flow next.
  • Growth → Guided resource reallocation across the portfolio and supported new co-investor pitches for top-performing start-ups.
  • Positioning → Crafted a sharper brand story for the fund, positioning it as the reinvention partner for globally minded founders.
6. The Results
  • 10 portfolio companies onboarded to the new Playbook → greater consistency of support.
  • Raised follow-on capital for 3 top start-ups with the new prioritisation framework.
  • +26% increase in inbound deal flow from founders citing the fund’s new positioning.
  • Stronger internal cohesion → partners aligned on where to focus resources.
The client thought the problem was pipeline quality.
The Sprint showed it was actually lack of clarity and focus inside the firm.

By applying the four pillars, Reinvantage helped turn scattered effort into concentrated value creation.

The Sprint guaranteed at least £20,000 in value; here it set the stage for multi-million-pound upside in portfolio growth.

Case study: International impact Organisation

1. The Client

A large international impact organisation focused on entrepreneurship and economic empowerment.
The organisation runs multi-country programmes across Eastern Europe and Central Asia, often in partnership with global donors and corporate sponsors.

Role we worked with: Senior Programme Director, responsible for regional coordination.

2. The Challenge

The organisation had launched a flagship regional initiative supporting women entrepreneurs, but the programme was underperforming.

Key issues:

  • Fragmented delivery → each country office interpreted the programme differently.
  • Donor frustration → reporting lacked consistency and clear impact metrics.
  • Lost momentum → staff energy was spent on administration rather than scaling success stories.

Traditional programme reviews had produced long reports, but no real alignment or action.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional leadership team and representatives from two country offices.

  • Day 1–3: Intake → Reviewed donor reports, programme KPIs, and field feedback.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Donors cared about quantifiable outcomes, but reporting focused on stories.
    • Staff were duplicating efforts across countries, wasting time and resources.
    • The initiative lacked a clear theory of change — everyone described its purpose differently.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the issue wasn’t donor pressure or programme design — it was a lack of shared framework and alignment.

Three critical insights reshaped the path forward:

  1. One Unified Theory of Change → agreed narrative for why the programme exists.
  2. Core Impact Metrics → clear, comparable KPIs across all countries.
  3. Smart Resource Sharing → digital hub to stop duplication and accelerate knowledge flow.
By eliminating duplicated reporting and clarifying what success looks like, the client saw they could save the equivalent of £100,000 in staff time annually — while also unlocking stronger donor confidence and follow-on funding opportunities.
5. From Sprint to Action (4 Pillars Applied)

Armed with Sprint clarity, Reinvantage proposed a laser-focused support plan:

  • Readiness → Trained programme leads on using the new metrics and integrated them into existing workflows.
  • Foresight → Analysed donor trends and expectations, aligning the initiative with the next funding cycle.
  • Growth → Developed a funding case based on the new unified theory of change, securing higher renewal chances.
  • Positioning → Crafted a regional success narrative and storytelling toolkit, helping them showcase results consistently across markets.
6. The Results
  • 30% less time spent on reporting → freed capacity for programme delivery.
  • Donor satisfaction improved → positive feedback on the clarity of impact evidence.
  • Secured new funding commitment → one major donor increased their contribution by 20%.
  • Stronger internal morale → staff felt they were working with clarity, not chaos.
The client thought it needed better donor management.
The Sprint revealed it needed a shared foundation across its teams.

By anchoring on the four pillars, Reinvantage turned alignment into efficiency gains and fresh funding opportunities.

The Sprint guaranteed at least £20,000 in value; here it unlocked both six-figure savings and future-proofed funding.

Case study: National digital development agency

1. The Client

A national digital development agency tasked with driving the government’s digital transformation agenda, including e-services, citizen portals, and smart city pilots.

Role we worked with: Director of Digital Transformation, supported by IT and service delivery leads from three ministries.

2. The Challenge

The agency had strong political backing but faced hurdles in implementation.

Key issues:

  • Siloed projects → each ministry developed digital tools independently, leading to duplication.
  • Citizen frustration → services were digital in name, but still required multiple logins and offline steps.
  • Funding pressure → international partners demanded clearer impact in the short term.

The agency wanted to accelerate momentum but struggled to get alignment across ministries.

3. The Sprint

We ran a 14-day Immersive Reinvention Sprint with the agency’s leadership and digital focal points from three ministries.

  • Day 1–3: Intake → Reviewed strategy docs, donor reports, and citizen feedback data.
  • Day 4: Immersive Sprint Session (half-day) → Breakthroughs:
    • Each ministry had different definitions of “digital service.”
    • 20% of budget was going into overlapping pilot projects.
    • Citizens’ top frustrations were known — but not prioritised.
  • Day 5–14: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the biggest blocker wasn’t lack of funding, but lack of shared priorities.

Three practical insights stood out:

  1. One Definition of Digital Service → agreed across ministries.
  2. Quick-Win Prioritisation → focus on top 3 citizen pain points (ID renewal, business registration, healthcare booking).
  3. Shared Resource Map → pool budgets to eliminate duplication.
These changes alone allowed the agency to unlock £75,000 in immediate savings and deliver 2–3 visible improvements in the next quarter — meeting donor expectations and building citizen trust.
5. From Sprint to Action (4 Pillars Applied)

Based on the Sprint clarity, Reinvantage proposed a modest, targeted package of support:

  • Readiness → Facilitated inter-ministerial workshops to embed the “one digital service” definition.
  • Foresight → Analysed citizen feedback trends to shape the quick-win roadmap.
  • Growth → Supported the reallocation of funds to joint projects, reducing overlap.
  • Positioning → Crafted a communication plan highlighting early digital wins to donors and citizens.
6. The Results
  • 2 pilot services integrated into the central portal (ID renewal + healthcare booking).
  • Budget savings of £75,000 from eliminating overlapping projects.
  • Citizen satisfaction up modestly → call centre complaints on digital services dropped by 12%.
  • Donor confidence improved → short-term impact report received positive feedback.
The client thought it needed more funding and bigger projects.
The Sprint revealed it first needed clarity and alignment.

By applying the four pillars to a targeted scope, Reinvantage helped deliver visible results within a single quarter — proving progress to citizens and donors and laying the groundwork for deeper transformation.