TEHRAN - Iran and Russia have reached an initial agreement for launching a joint shipbuilding venture in the Caspian Sea region.
Iran’s Trade Promotion Organization (TPO) has reported that TPO’s head Alireza Peymanpak had reached agreements on the issue with Russian authorities during meetings had held in the city of Saint Petersburg earlier in the day.
“The Russian side has committed to help the Iranian side in the joint manufacturing of ships and also to supply the ships needed by the Islamic Republic of Iran,” read part of the report published in the local media.
It said Iran and Russia had also reached an agreement under which Iranian companies will supply ship parts they manufacture to shipyards in Russia.
The report added that the agreements are in line with a broader understanding between Iran and Russia to increase their trade relations along the International North–South Transport Corridor (INSTC), a major corridor that connects trade hubs in the region.
It said that Russia’s logistical support for Iran’s fleet of commercial ships will help plans to increase traffic along the INSTC.
Iranian officials announced earlier this week that they had launched a first pilot transit of cargo between Russia and India through the corridor.
Experts say Russia and India will seek to increase their trade through the Iranian territory now that Moscow faces a regime of Western sanctions because of its involvement in the war in Ukraine.