Iran and Russia are set to finalise a €1.6 billion agreement to construct the 162‑kilometre Rasht–Astara railway, completing the crucial missing link in the International North–South Transport Corridor (INSTC). This milestone will create a continuous overland freight route connecting India, Iran, and Russia, sharply reducing transit time and cost compared with the Suez Canal route.

The deal, backed by a Russian state loan, underscores both nations’ drive to reinforce trade resilience against U.S. sanctions. The line, running from Rasht near the Caspian coast to Astara on the Azerbaijani border, will enable seamless cargo movement from Persian Gulf ports through Iran and the Caucasus to Russian and European destinations.

Iranian authorities have confirmed that construction readiness is high, with land acquisition and environmental approvals largely complete. Contractors and equipment mobilisation are expected to begin immediately following the signing ceremony. Russia’s involvement covers financing, technical expertise, and railway engineering support.

Once operational, the Rasht–Astara segment will cut freight transit time between Mumbai and Moscow from 40 days via the Suez route to about 20 days through the INSTC corridor. It will also deepen integration of Iranian rail infrastructure with Russian logistics networks, making it a strategic alternative for energy, metals, and agricultural exports.

Tehran and Moscow view this project not only as an infrastructure investment but also as a geopolitical instrument to diversify connectivity and safeguard bilateral trade flows. The successful completion of the Rasht–Astara railway is expected to significantly enhance India’s access to Eurasian markets via Iranian ports, further consolidating the INSTC’s role in the emerging multipolar trade architecture.

Agencies