TEHRAN: Iran and Russia have signed a significant deal aimed at completing the final part of a major commercial transport network. The agreement, signed by Iranian Transport Minister Mehrdad Bazrpash and his Russian counterpart in Tehran, focuses on constructing a 164-kilometer railway in northern Iran within the next three years.
This railway will connect Rasht, a city in northern Iran, to the Astara crossing on the border with Azerbaijan. The railway project is the missing link in the International North-South Transport Corridor (INSTC), which extends from northeast Russia via Azerbaijan to Iran’s southern coastline and provides a trade route to India, bypassing Western sea lanes.
Both Russia and Iran are currently facing international sanctions that restrict trade, making the completion of the transport network even more significant. The INSTC, which covers a distance of approximately 7,200 kilometers, offers an alternative route for transporting Russian seaborne cargo, avoiding the Suez Canal between the Mediterranean and the Red Sea.
Iranian President Ebrahim Raisi and Russia’s President Vladimir Putin, who joined the signing ceremony via videoconference, expressed their optimism about the economic opportunities the agreement presents.
President Raisi emphasized the positive impact the completed INSTC will have on regional trade and highlighted the potential for enhanced ties between Iran and Russia. President Putin, in turn, praised the economic benefits for both countries, including the creation of new jobs and increased investments.
He described the Rasht-Astara railway as part of a unique north-south transport artery that will significantly diversify international transport flows, providing a competitive advantage in the delivery of goods from Saint Petersburg to Mumbai in India.
Relations between Iran and Russia
The signing of this agreement marks an important strategic step in strengthening economic and trade ties between Iran and Russia. Despite facing sanctions from the West, both countries are keen to enhance cooperation in various sectors to bolster their economies.
In addition to the transport network, discussions have taken place regarding oil and gas exploration projects, with Russian companies investing in multiple Iranian oil fields. Efforts are also underway to increase freight transit by rail between the two nations.
As Iran and Russia deepen their collaboration, concerns have been raised by the United States about their expanding defense partnership and alleged sales of advanced weapons, including unmanned aerial vehicles (UAVs). However, Tehran and Moscow have maintained that their cooperation is focused on economic and trade matters.
The completion of the transport network and the strengthening of economic ties between Iran and Russia signify their commitment to circumventing sanctions and fostering mutually beneficial cooperation. The railway project, along with other joint initiatives, has the potential to boost trade and economic growth in the region.
