✅ Russia and Iran’s Major Trade Route: The International North-South Transport Corridor (INSTC)
The trade route being developed by Russia and Iran is a crucial part of the larger International North-South Transport Corridor (INSTC). This ambitious project is a multi-modal network designed to create a shorter, faster, and sanctions-resilient trade artery connecting the Indian Ocean/Persian Gulf to Northern Europe.
🗺️ Full Details on the INSTC
1. Core Concept and Route
- What is it? The INSTC is a 7,200 km multi-mode network incorporating ship, rail, and road routes.
- Main Goal: To facilitate freight movement primarily between India, Iran, Russia, Azerbaijan, and Central Asia, with connections extending toward Europe.
- Key Advantage: It is projected to cut shipping time by nearly half (from around 37-40 days to 19-21 days) and reduce transport costs by approximately 30-40% compared to the traditional Suez Canal maritime route.
- Strategic Importance: It bypasses traditional Western-controlled sea routes and land corridors, effectively creating an alternative trade network that can circumvent Western sanctions imposed on Russia and Iran.
2. Key Segments and Branches
The corridor is designed with multiple operational and planned branches, with the Russian-Iranian segment being the most critical for direct connectivity:
| Segment/Route | Description | Status |
| Western Branch (Russia-Iran-Azerbaijan) | Runs from Russia to Azerbaijan, and then south into Iran via railway. This is seen as the primary land route. | Partially operational, with a major “missing link.” |
| Caspian Sea Route | Goods travel from Russian ports like Astrakhan across the Caspian Sea to Iranian ports like Bandar Anzali or Astara. | Operational and currently carrying a significant volume of goods. |
| Eastern Branch (via Central Asia) | Connects Russia and Iran through countries like Kazakhstan and Turkmenistan, leveraging the existing Kazakhstan–Turkmenistan–Iran railway link. | Operational in parts, expanding the corridor’s reach. |
3. The “Missing Link”: Rasht-Astara Railway
The most critical and high-priority infrastructure project in the Russia-Iran cooperation is the completion of the Rasht-Astara railway in Iran.
- Location: A 162-kilometer stretch of track in Northern Iran.
- Significance: It is the final missing link of the Western branch that will connect the Iranian railway network (from the Persian Gulf) seamlessly to Azerbaijan and onward to Russia.
- Funding: Russia is providing an estimated €1.6 billion in funding and technical assistance for its construction.
4. Geopolitical and Economic Drivers
The development of the INSTC is driven by several shared strategic objectives:
- Sanctions Defiance: It is a core effort by both sanctioned nations to establish sanctions-proof supply chains and reduce dependence on the Western financial and logistical systems.
- Trade Diversification: Russia gains new access to markets in the Middle East, South Asia, and Africa. Iran boosts its trade with Eurasia and gains transit fee revenue.
- India’s Role: India is a founding member and key investor (particularly in the Chabahar Port in Iran), seeing the INSTC as a vital route to access Russia and Central Asia, bypassing Pakistan.
- Eurasian Alliance: The corridor aligns with China’s Belt and Road Initiative (BRI), potentially creating a powerful, seamless trade network across Eurasia.
