Iran and Russia agree to build a train to boost regional trade

2023-05-17 12:56:13

Iran and Russia have signed on Wednesday a agreement for the construction by one railway between the Iranian cities of Astara and Rashtwhich is part of the Nascent North-South International Transport Corridorwhose objective is to promote trade in the region.

Relations between Iran and Russia have strengthened in the past year, since the invasion of Ukrainein economic, political and military issuesto face international sanctions that reduce their economies. Tehran and Moscow they are expanding their cooperation in oil and gas, while deepening their military relationship with the sale of drones and fighter jets.

The agreement for the financing y construction of the Railway Astara-Rasht was signed in Tehran and was attended by the Iranian President Ebrahim Raisiand its Russian counterpart, Vladimir Putinby video conference.

The railway line of 162 kilometers will have a cost of $1.6 billion and will connect the cities of Primeron the border with Azerbaijan, with Rasht, located on the coast of the Caspian Sea. The project is part of the North-South International Transport Corridor, which aims to link Central Asia, Europe and South Asiaand that it can compete with the Suez Canal, according to Russia.

“Fruitful and profitable” interaction

“Our successful interaction in the framework of such a significant project reflects the high level and the fruitful, mutually beneficial character of the Russian-Iranian relationsPutin said during the ceremony, broadcast on Russian and Iranian state television.

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The president stressed that the railway line that runs through the Caspian sea coast it will connect Russian Baltic ports with Iranian ports in the Indian Ocean and the Persian Gulf. Raisí, for his part, described the signing of the agreement as a “strategic” moment of cooperation between iran and russia and assured that the new corridor “will diversify global transportation routes.”

Iran hopes that the North-South International Transport Corridor will help the country become a economic center to face the US sanctions that deplete their economy. “With the completion of the north-south railway, Iran will regain its historical status in Asia as a commercial center,” Iranian government spokesman Ali Bahadori Jahromi said yesterday.