Iranian Ambassador to Armenian Alireza Haqiqian stated that the main problem of the Iran-Armenia relations is the unsettled border issues. For the solution of these issues an Iranian-Armenian commission has been formed. Noting the high level of the trade and economic relations between the two states the Ambassador said that annually the commodity turnover between Iran and Armenia increases 30%. Last year it made $180 million. According to him, the most significant joint economic project is the construction of the Iran-Armenia gas pipeline. The length of the pipeline is 140 km, 100 km of which lies though the Iranian territory and 40 km through Armenia. The construction is to finish by 2007. Presently the first stage of the works is being realized. Mr. Haqiqian informed that Armenia refrained from the construction of the Kajaran tunnel. Instead a highway is being built in another region. The new road is supposed to facilitate transportation between Iran and Armenia.