Deep in the cellar of the Noy Brandy factory in Yerevan, Armenia, there is a pungent, but not unpleasant smell of ageing, fortified wine.

On an upturned wooden cask sit a dozen glasses, and a bottle of 1944 sherry. The company's wine-tasting sessions are popular with tourists and most of them, according to tour guide Anna, come from Iran.

"Ten metres underground, they think Allah is out of range," she smiles. "They don't want to taste the wine, they want to drink it."

Across town, Omid Mojahed is one such Iranian looking for more than just a taste of Armenia. He is a 28-year-old student and an entrepreneur at heart.

We attach great importance to our relations with Iran. One can choose one's friends but not one's neighbours

He spends most of his time away from his books, working on his businesses, which include a travel agency working exclusively in the Iranian market.

"In summer I think that 90% of tourists are Iranian. Armenia is so close by and has attractive things - cafes and nightclubs, and beautiful Lake Sevan."

Omid has also just opened a Persian restaurant, catering for locals as well as Iranian expats, keen for some home cuisine.

Gathered at the bar around a smoking pipe, a group of Iranian students are relaxing after their exams.

Twenty-year-old Mehdez explains that Armenia is popular with thousands of young people who cannot get a place in Iran's over-subscribed higher education system.

"I chose to study in Yerevan because it's an easier situation. Here we have more freedom," she says.


Agencies