Iran, Russia Sign $1.6bn Rail Deal for Corridor

TEHRAN -- Russian President Vladimir Putin and his Iranian counterpart Ebrahim Raisi on Wednesday oversaw, via video-link, the signing of a deal to finance and build an Iranian railway line as part of the international North–South Transport Corridor.
The Rasht-Astara railway is seen as an important link in the corridor, intended to connect India, Iran, Russia, Azerbaijan and other countries via railways and sea - a route that Russia says can rival the Suez Canal as a major global trade route.
“The unique North-South transport artery, of which the Rasht-Astara railway will become a part, will help to significantly diversify global traffic flows,” Putin said.
He also said the 162 km (100 mile) railway along the Caspian Sea coast would help to connect Russian ports on the Baltic Sea with Iranian ports in the Indian Ocean and the Persian Gulf.
“Without a doubt, this agreement is an important and strategic step in the direction of cooperation between Tehran and Moscow,” Raisi said.
Russia and Iran have been pushed to strengthen their political and economic ties by Western economic sanctions on each, which both say are unjustified.
In Tehran, Iranian transport minister Mehrdad Bazrpash and his Russian counterpart Vitaly Savelyev put their signatures on the $1.6 billion deal during a ceremony watched by Raisi and Putin.
The 162-kilometer railway will connect the Iranian city of Rasht, near the Caspian Sea, to Astara on the border with Azerbaijan.
“Iran and Russia are cooperating in different fields. Today’s deal is one of the manifestations of cooperation not only between the two countries, but also other states on the path of the INSTC,” Raisi said.
“The INSTC will benefit all regional states as it will establish friendship, convergence and commercial cooperation between the countries in East Asia, as well as those in the Caucasus and North Europe.”
Negotiations to build the railway were held 20 years ago about the deal, but its signing was postponed, the Iranian president said.
Putin expressed hope that the railway would enable exchange of foodstuff and other goods between the Caspian Sea and Persian Gulf countries on the INSTC.
The 162-kilometer (100-mile) route will run along the Caspian Sea coast and through Azerbaijan. It will be a key part of the 7,200-kilometer (4,473-mile) INSTC combined road, rail and sea route aimed at moving goods

from Russia via Central Asia to India, slashing shipping costs and times.

Russia has in the past touted the trade route as being a rival to the Suez Canal, an artificial waterway connecting the Mediterranean and Red seas that cuts thousands of kilometers from the sailing route between Europe and Asia that would otherwise go around the African continent.

Under the terms of the agreement, Russia will spend 1.6 billion euros on the construction of the railway, whose completion is planned within 48 months, the Trend outlet reported, citing the Iranian Ministry of Roads and Urban Development. Iran’s side of the project will cost about 4.6 billion euros and it is looking for foreign investors to help cover the expense.

The ministry said there will be nine stations on the line.

Russia, Iran, and India initially signed on the North-South route in the early 2000s and since then a number of other countries have ratified the project including Azerbaijan, Belarus, Bulgaria, India, Iran, Kazakhstan, Kyrgyzstan, Oman, Russia, Tajikistan, Turkey and Ukraine.

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Iran, Russia Sign $1.6bn Rail Deal for Corridor