Iran, Russia Sign Roadmap for Completing Transport Corridor

Iran’s Road and Urban Development Minister, Farzaneh Sadegh, and Russia’s Minister of Transport, Roman Starovoyt, have signed a “transit roadmap for 2025.”

The core element of the agreement, signed in Tehran on February 18, is the completion of the long-delayed Rasht-Astara railway in Iran with Russia’s assistance, according to Iran’s Mehr News Agency.

This railway segment is the missing link in the International North-South Transport Corridor (INSTC), a major trade route connecting India to Russia. Iran is actively developing the INSTC, focusing on multiple routes.

The Iranian minister expressed hope that the operational contract would be signed by late March and stated that land acquisition for the railway’s construction would be completed within a year.

Sadegh announced that a trilateral meeting with Russia and Azerbaijan will coordinate efforts to launch the corridor’s western branch.

She noted that Iran and Russia are also working on developing the eastern branch, which involves Central Asian countries. The third route, via the Caspian Sea, was also discussed, with the Russian minister proposing the formation of a consortium – an idea Iran accepted.

Additionally, the minister encouraged Russia to use Iran’s transit network for exports to Pakistan.

Pakistan and Russia signed a protocol on the rail link in 2024. The Russian train is expected to travel through Kazakhstan, Turkmenistan, and Iran, with Taftan station in Pakistan serving as the key entry point for goods moving through the corridor.

An international freight train service between Pakistan and Russia is expected to begin operations by March 15. This route will allow Russia to export oil, natural gas, steel, and industrial goods directly to Pakistan, while Pakistani exporters will gain greater access to markets in Iran, Turkmenistan, Kazakhstan, and Russia for textiles, food products, and agricultural goods.

With the recent thaw in Moscow-Washington relations, the INSTC project could serve as a key indicator of the strength of Iran-Russia ties. However, the already delayed launch of the Rasht-Astara railway, hampered by financial and technical challenges, may face additional obstacles due to US President Donald Trump’s hardline policies on Iran and his plans to reinstate the “maximum pressure” strategy.

India stands to benefit from the corridor, as it allows the country to bypass Pakistan and expand trade with Afghanistan and Central Asia. So far, India has invested $24 million in Iran’s Chabahar port, a key hub along the INSTC.

Trade between India and Russia via the INSTC doubled last year. Indian exports to Russia through the corridor include construction supplies, clothing and footwear, rice, plastics, rolled iron, confectionery, seasoning, and food concentrates. Meanwhile, Russian exports to India include paper products, lumber, hygiene products, furniture, roofing materials, and food, among other goods.

Bilateral trade between the two countries reached a record $66 billion in 2024, marking a fivefold increase over the past five years, with a 9% rise in the last eight months of the year. Russia and India are on track to achieve their ambitious $100 billion trade target by 2030.

An intergovernmental agreement to establish the 7,200-km multimodal North-South Transport Corridor was signed by Russia, India, and Iran in 2000. Since then, the number of participating countries has grown to 14. The project aims to attract cargo flows from India, Iran, and the Persian Gulf nations to Russia and Europe. Currently, the corridor integrates various national transport systems into a unified network.